Commodity Loan Guarantee Program

Overview of the Commodity Loan Guarantee Program program:

The Commodity Loan Program (CLP) offered by the Agricultural Credit Corporation (ACC) provides financial support to Ontario farmers, enabling them to secure low-cost loans for their commodity production. This program is designed to ease cash flow constraints during the growing season, allowing farmers to focus on maximizing their crop yields without the immediate pressure of selling their produce at less favorable market conditions.

Benefits of the Commodity Loan Guarantee Program program:

• The Commodity Loan Program offers several key benefits to Ontario farmers:
• Low-Cost Financing: Farmers can access loans at competitive interest rates, helping to cover the costs of inputs like seeds, fertilizers, and other essential farming supplies.
• Flexible Repayment: The program allows for flexible repayment options, giving farmers the ability to repay the loan after the harvest, when their cash flow is typically more stable.
• No Immediate Sales Pressure: By providing upfront capital, the program helps farmers avoid the need to sell their commodities immediately after harvest when market prices might be lower.
• Increased Cash Flow: The program supports the overall financial health of farming operations by providing the necessary liquidity during critical points in the growing season.

Eligibility criteria of the Commodity Loan Guarantee Program program:

• To be eligible for the Commodity Loan Program, applicants must meet the following criteria:
• Residency: The applicant must be a resident of Ontario.
• Farming Activity: The loan must be used for the production of eligible commodities such as grains, oilseeds, or other approved crops.
• Good Credit Standing: Applicants must have a satisfactory credit history and demonstrate the ability to repay the loan.