The federal government is temporarily changing the rules to the Advance Payments Program.
The program provides producers with access to credit to help cover input costs as crops go into the ground.
With higher input costs due to the pandemic and the war in Ukraine, there will be a temporary waiving of the requirement for pre-production advances to be issued in two installments, 60 per cent upfront and 40 per cent after seeding is confirmed.
The change will allow producers to receive 100 per cent of their 2022 advance immediately when they apply.
The first $100,000 is interest free and advances of up to $1 million are available, depending on the expected value of the product.
Canada's agriculture minister, Marie-Claude Bibeau, says there is more pressure on Canada to help fill the food production gap as pressure on world food supplies continues to increase.
"So farmers will be in a position to get these advances to have more cash flow to pay for the inputs," said Bibeau. "We acknowledge that the cost of inputs are important and higher than usual and everybody's looking at Canada to provide more food, so this is one way to support farmers."
In December of last year, Farm Credit Canada proactively offered credit limit increases of 30 per cent for crop input financing to customers that met specific pre-approval criteria.
