Nov. 06/24 Articles Print Page

AgriStability is known as a low-cost risk management program where coverage is based on individual farm history. At the same time, AgriStability is also viewed as a complex program that requires detailed record-keeping and associated professional fees. It is also viewed as being slow to pay.

However, changes are on the way that will reduce the filing burden, increase dependability and predictability, and result in files being processed sooner.

Starting with the 2025 program year, AgriStability participants will be able to:

  • choose between optional reference margin (ORM) and accrual adjusted reference margin (AARM)
  • request coverage notices, if they have selected the optional reference margin

Additionally, the filing deadline for supplementary forms and tax information (inventories, purchased inputs, receivables and payables) is moving to June 30. Participants will still be able to file their AgriStability forms any time after they complete their year-end but will need to ensure all necessary information has been received by AFSC by June 30.

Choosing your reporting method

Starting in 2025, participants will be able to choose how they want to file – optional reference margin or accrual adjusted reference margin.

The optional reference margin simplifies reporting as accrual and inventory details are not required. The farm income reported for tax purposes, along with accrual, and inventory details for the program year are still required but only if the participant is in a claim position.

“The optional reference margin allows the reference margin to be calculated using the same method as the producer uses for tax reporting,” explained Darryl Kay,  Agriculture Financial Services (AFSC) chief executive officer.

“This should reduce the complexity for some participants, especially those who file their taxes on a cash basis.”

On the other hand, the accrual adjusted reference margin considers inventory, payables, purchased inputs, and deferrals. It requires additional time and effort as more information is submitted each year; however, the added information increases the precision of the calculation.

Producers who have not participated in AgriStability for at least four years and who picked the optional reference margin can switch to the accrual adjusted method in any future program year.

Existing participants can also select the optional reference margin; however, they will not be able to revert to the accrual adjusted reference margin until their reference margins over the most recent four program years all use the optional reference margins.

Participants will want to take time to carefully consider which reporting option is right for their operation.

Coverage notices

Also new for the 2025 program year, AgriStability participants who have chosen the ORM reporting method will be able to request a coverage notice. These notices will provide participants with an estimated reference margin and a benefit trigger point for the current program year.

“Coverage notices will help participants understand their potential benefit level before they file any forms,” explained Daniel Graham, AFSC AgriStability and Pricing manager. “Participants can then choose if it is worth their time and any associated costs to file a claim in that program year. This new feature will add dependability and predictability for producers.”

Participants will need to submit their planned productive capacity (number of acres, number of head, births) which will be used to create an estimated reference margin and determine if any structural changes have occurred.

Coverage notices can be requested starting in May 2025. The final deadline for coverage notice requests is December 31 of the program year. For 2025, coverage notices will only be available to participants who have selected the optional reference margin.

Filing deadline moves to June 30

Starting in the 2025 program year, the deadline to file supplementary forms and tax information is moving to June 30. Participants who miss the deadline can submit their forms until September 30; however, they will be subject to a late filing fee.

“The deadline for the 2025 program year is June 30, 2026 with a final deadline of September 30, 2026,” said Graham. “Program forms submitted after the June 30 deadline will have their final AgriStability benefit reduced by $500 per month to a maximum of $1,500. If no benefit is calculated, no penalty will be applied.

“Participants who have not submitted their 2025 supplementary forms by the September 30, 2026 deadline will be ineligible for the program year.”

It’s time to take another look at AgriStability

AgriStability remains an inexpensive, effective risk management tool for Alberta’s producers and recent changes have made it more responsive, timely and predictable for producers

Recent changes include:

  • removal of the reference margin limit in 2020
  • return to an 80 per cent (80 cents per dollar of support) compensation rate in 2023
  • introduction of an optional reference margin
  • addition of coverage notices for participants who have chosen the optional reference margin
  • shifting the supplementary form and information filing deadline to June 30

“We’ve heard producers when they’ve told us that AgriStability is complicated, slow to pay and that associated professional fees can be costly,” said Graham. “The work we have done over the past few years have strengthened AgriStability’s ability to provide risk management to producers.

“I believe these changes will encourage previous participants to take another look at AgriStability and help attract new participants. The simpler reporting option can give both new and returning participants a chance to try out the program, learn how it works and see if it’s a fit for their operation.”

It’s time to take another look at AgriStability and see if it’s the right fit for your farming operation.

Additional resources

To learn more, please contact an insurance relationship manager at your preferred AFSC branch office, call the Client Care Centre at 1.877.899.2372 or email info@afsc.ca