CDN Canola Growers Association

[Jim]

Wanted farmers feedback if they have received CCGA financing from this organization. Have used FCC and AfSC previously. But the advertised 100k at 0% looks far more attractive and financially better decision.

Anything to watch out for or bad experiences. Unfortunately grain prices are looking like another bad year so need to save as much as possible on input costs.

[yoteblaster]

Are you talking about the cash advance program? I have used it for close to 20 years. $50 administration fee and you’re good to go. Need to pay off last years advance before you can start a new one. Basically one year just rolls into the next one.

[IL Bar]

It’s a bit of a different tool for cash flow than borrowing money from AFSC or FCC for inputs. Yes it’s 0% interest but any grain you deliver to the elevator automatically goes to pay off the advance. I like revolving loans but with interest rates up have to watch how you use those as well.

I tried it once and it wasn’t really for me. It didn’t help that years ago my father advised me to stay away from advances if I could. Maybe that advice has helped me or hindered me all these years.

[Drewski Canuck]

Is the advance tied to a Futures contract? Is there a discount on price when delivering grain for sale?

Just curious. They have to be making money somehow. Or is the amounts over $100 K at a higher interest rate?

Drewski

[esher]

Advance isn't tied to anything. When you deliver grain some companies take the refund off some don't. The money is federal canola growers only administer it.

[dfarms11]

Advances are not tied to a contract although must be secured either with crop insurance coverage or actual grain in the bin. They also don't cover full price for grain, but about only roughly 50-60% of what it's worth. Pretty much limits risk of a substantial drop in crop prices. Up to $100000 is interest free, anything over that is prime less 0.25%. Still reasonable. Must pay a portion back everytime you sell grain. There are also deadlines and penalties if payments not made on time and such. Doesn't come without it's rules.