Canola APP Interest-Free Limit Increased

Summary#

Regulations Amending the Agricultural Marketing Programs Regulations (Canola 2025 and 2026) raise the interest-free portion of Advance Payments Program advances for canola to $500,000 for the 2025 and 2026 program years. The change is a final regulation that came into force on September 16, 2025 and was published in the Canada Gazette on October 8, 2025.

What it does#

• Temporarily raises the interest-free limit under the Advance Payments Program (APP) to $500,000 for canola advances in program years 2025 and 2026 (so the government pays interest on that portion).
• Keeps other (non-canola) APP interest-free limits returning to $100,000 beginning with the 2026 APP program year.
• Defines program-year end dates used in the rules: program year 2025 ends March 31, 2027 and program year 2026 ends March 31, 2028.
• Estimated direct effects from the government’s analysis:
  • About 1,745 canola producers in program year 2025 and 6,000 in program year 2026 could benefit.
  • Combined additional interest savings to producers of about $36.3 million ($5.1 million in 2025 and $31.2 million in 2026).
  • Estimated incremental cost to the government of $35.3 million (including interest and expected default costs).

Who's affected#

• Canola producers across Canada are the main group affected — they can get larger interest-free advances under the APP for two years.
• APP administrators (the industry groups that deliver the program) must adjust guarantees, forms and agreements to apply the higher limit.
• Agriculture and Agri-Food Canada (AAFC) is responsible for implementation and monitoring.
• The measure may also affect producers in Indigenous and modern treaty areas who are eligible for the APP, though the government notes known barriers to access for some Indigenous producers.
• The change could have trade or policy knock-on effects for Canada’s trading relationships (the government flagged potential risk of countervailing action by partners).

Why it matters#

• It lowers borrowing costs and improves short-term cash flow for canola farmers, making it cheaper to hold crop instead of selling into weak markets.
• The move responds to trade disruptions that have hit canola prices — notably China’s duties of 100% on canola oil and meal and 75.8% on canola seed — and to uncertainty about possible U.S. measures.
• For everyday farms, that means more breathing room to wait for better prices or cover operating costs ahead of the next season.
• It has a fiscal cost to the government ($35.3 million estimated) and could raise trade-policy risks, and the government acknowledges access gaps for some Indigenous and small-scale producers and says it will monitor and consult further.