Loan program available for unharvested corn

Wednesday, February 11, 2009

© AgMedia Inc.

By TREENA HEIN

Ontario corn producers who have substantive corn left unharvested due to snow cover have until the end of February to apply for financing.

Up to $25,000 of interest-free bridge financing is available through The Advance Payments Program for Unharvested Corn (Emergency) from ACC Farmers' Financial (ACCFF). ACCFF is a non-profit farm organization founded in 1992 by a coalition of farm organizations which offers financial services to producers. 

The loan applications can be requested through the ACCFF office or printed from the organization’s website (www.accfarmersfinancial.ca), then filled out and mailed in. Faxing is not acceptable. There is one application for producers who have received a 2008-09 Stored Crop Advance and one for producers who have not.

 “This is the first year in many many years that we have offered this program,” says Don LeDrew, ACCFF vice president and treasurer. “I believe the early 90’s was the last time. The Ontario Corn Producers Association asked for it.”

The loan amount that each producer is eligible for can be calculated by multiplying the number of acres by the expected yield of each field. That number is divided by half, and multiplied by $279 per bushel. The loan amount tops out at $25,000.

LeDrew says a producer can determine expected yield using a copy of his or her most recent crop insurance or CAIS Agristability report.

In terms of how many acres are affected by this provision in Ontario, LeDrew says “it’s tough to get a good handle on it, but province wide it’s about ten per cent as of mid-January.” He says most of the affected areas lie within North Huron, Bruce-Grey and Simcoe counties, but there are other areas spotted throughout the province as well. BF