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Canada | Publication | May 13, 2020 – 9 AM ET
Prime Minister Trudeau recently announced new measures to assist agribusinesses, $252 million in federal funding and an increase of $200 million in borrowing capacity to support agribusinesses. These measures include:
The announcement also noted that programs such as AgriInsurance, AgriStability, AgriInvest, and AgriRecovery are designed to help producers remain viable under challenging circumstances. The 2020 AgriStability program enrollment deadline was extended to July 3, 2020, while the AgriRecovery program will become more flexible to allow the federal government to provide funding directly to producers, regardless of their respective province’s ability to contribute.
Further, the announcement recognized previous federal government measures aimed at assisting agribusinesses, including:
Agribusinesses will need to carefully monitor the details of these funding initiatives, as the eligibility criteria and the application process are still to be released. It will be important as details are released to ascertain how these funds will intersect with the programs already in place for agribusinesses at the federal and provincial levels and to act quickly to receive the full benefit of these programs.
While the prime minister did not disclose many details in making his announcement, it is reasonable to expect that the same trust-based principles that apply to other federal government funding and subsidy programs will apply and the government will be relying on the good faith of agribusinesses in reporting their eligibility and completing the application process. In the case of other funding programs, the government has indicated that businesses found to have fraudulent claims may be subject to penalties, including fines or imprisonment.
For information about other available government relief programs, refer to our guide.
The authors wish to thank Preston Brasch, articling student, for his assistance in preparing this legal update.
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