Fédération des producteurs acéricoles du Québec
header

Financing Back

Financing the Strategic Maple Syrup Reserve

In 2015, the Federation put in place a program financing the Strategic Reserve. This means that producers can receive advances on unsold maple syrup being held at the Federation warehouse. The financing is a loan that will be automatically reimbursed when the corresponding quantities are sold. The current interest rate on these advances is 2.70% per annum, and it is tax deductible.

Every year, producers have until August 31 to complete the process and they will receive all the necessary forms by mail. 

Here are the steps for requesting financing:

  • Select the years for which financing is being requested (here is an example of a completed form).
  • Fill in the “Avance demandée par le producteur” box.
  • SIGN the form.
  • Return the “Demande de participation au programme de financement de la réserve
    stratégique” form to the Federation by mail, fax, or email. 

The producer services team will then review the request, prepare the agreement for advance payment and a surrender document (as needed), and send the document(s) to the producer. The producer will need to sign the financing document(s) (agreement, and surrender document, if any) and return them to the Federation by mail. The documents must be signed by all corporate and business shareholders.

Example

It’s always easier to understand with an example. Let’s take a look at a fictional case of financing for a producer—we’ll call him Paul Jones—who wants to upgrade some of his equipment. Here are the options available to Mr. Jones:

Production year

Value of eligible inventory

Financing %

Available advance

Requested advance

2012

$1131.39

50

$565.70

$565.70

2013

$534.40

50

$267.20

$267.20

2014

$674.37

50

$337.19

$337.19

2015

$2,124.51

50

$1,062.26

$0

2016

$1,508.70

50

$754.35

$754.35

Total

$5,973.37

 

$2,986.70

$1,924.44

 

This year, Mr. Jones could have received financing of up to $2986.70. This does not include the organic bonus for each year or the industrial syrup from 2014 on. If he wants an advance for one of the years, he needs to take the full amount, and the total amount of the advance has to be over $1,000. So Mr. Jones requests a $1,924.22 advance, partly because he wants to be able to request an advance next year and the amount for 2015 is over the minimum amount. Next year he’ll be able to tap into the unused amount from this year as well as the amounts available for other years—including the reserve amount linked to the  2017 season.

The interest on this advance will be deducted from the producer’s earnings in the annual March 15 statement of accounts. As the reserve quantities are sold, the advance will automatically be reimbursed. If he so wishes, Mr. Jones can also decide to repay the Federation for the loan before the syrup is sold.

Obviously, Mr. Jones has not stopped payment, is not in default with the Federation, and has respected all of the retail sales rules. 

The sites of the FPAQ

Logo
Logo
Logo
Logo
Follow us!
Sign up for our newsletter
© 2017 Fédération des producteurs acéricoles du Québec. All rights reserved.