Advance Payments Program

The Advance Payments Program (APP) is a federal loan guarantee program which provides agricultural producers with easy access to low-interest cash advances.

Under the program, producers can access up to $400,000 per program year in advances based on the value of their agricultural product, with the Government of Canada paying the interest on the first $100,000 advanced to a producer. Advances are repaid as the producer sells their agricultural product, with up to 18 months to fully repay the advance for most commodities (up to 24 months for cattle and bison).

As a producer, an APP advance can help you to meet your financial needs, such as farm input costs, immediate financial obligations, and product marketing costs. It can also allow you to make the decision to sell your agricultural products based on market conditions rather than the need for cash flow.

APP advances are available through more than 40 participating producer organizations, that is, APP Administrators, across Canada.

Toll Free Number: 1.866.367.8506 | Advance Payments Program website

The Advance Payments Program (APP) provides producers with a cash advance on the value of their agricultural commodities for a specified production period. The advances allow producers to meet their immediate financial obligations without having to market their commodities and give producers the necessary financial flexibility to market their commodities when the conditions are right for them.

To be eligible to receive a cash advance under the Advance Payments Program (APP), the producer must be:

1. a Canadian citizen or permanent resident;
2. a corporation, cooperative or partnership of which the majority interest is held directly or indirectly (through another corporation, a trust etc) by Canadian citizens or permanent residents

In addition, the producer or one of the producer’s individual interest holders:

3. must be of the age of majority in the province of operation;
4. must own the agricultural product;
5. must be responsible for its marketing

The Advance Payments Program is administered by approximately 60 producer organizations on behalf of Agriculture and Agri-Food Canada (AAFC). A full list of all the participating producer organizations in Canada is available on the Advance Payment Program website at www.agr.gc.ca/app. If you are interested in receiving an advance, you can use this list to find a participating producer organization near you.

The Advance Payments Program provides producers with cash advances on their commodity sales in order to improve business cash flow. These advances are provided at preferential interest rates, with the first $100,000 as interest-free, which affords producers the flexibility to market their products based on business strategy rather than a need for working capital.

To apply for an Advance Payment Program advance, producers typically have to pay an application fee to the Producer Organization administering the advance. Fee structures vary between the different administrators. Some administrators charge a one-time only fee, while other charge a fee for the initial application and lower fees for the second or third instalment, and others may use a pro-rated fee schedule based on the amount of money advanced.

Producers are eligible to receive an advance for up to $400,000 per production period, with the first $100,000 of their advance being interest-free. The advance is based on an advance rate determined by the Minister which cannot exceed 50 per cent of the average price that in the Minister’s opinion will be payable to producers of the agricultural product in that area. This limitation on the advance rate helps to absorb price fluctuations that may naturally occur in the market.

Yes. The availability of cash advances is controlled to an extent by the agreement the administrator negotiates with AAFC. Under the program, a production period is usually 18 months, or 24 months for cattle and bison, and advances issued are always linked to a production period. The administrator, when considering the needs of producers it is serving, generally decides on the timing of advances based on producers’ production cycles.

Once a producer has reached their interest-free limit or their overall maximum eligible advance limit, they will not be eligible to receive another advance during the production period. The producer will however be eligible for another advance in the next production period as long as all outstanding advances remain within the maximum $400,000 overall advance limit.

The Advance Payments Program advances on hundreds of crop and livestock products. Eligible products must meet the following criteria:

  • An animal that is raised in Canada or the fur pelt of the animal
  • A plant grown in Canada or the product of the plant, or
  • Honey or maple syrup that is produced in Canada

The product must not be processed, and for perishable products such as fruit, it should not be processed beyond what is necessary to store it and prevent spoilage. The Minister must also be able to establish a market price for the purpose of determining the eligible advance rate.

The following changes were in force for the 2015 program year:

  • You will be able to receive advances for all your commodities through one application with a single administrator;
  • To be eligible for an advance, you will no longer need to be principally occupied in farming;
  • There will be a new repayment schedule in line with the perishable date of non-storable products thereby avoiding the need for proof of sale;
  • You will be allowed to repay your advances without penalty if you decide to wait to market the commodity until conditions are more favourable;
  • You will be allowed to repay your advance without penalty if the agricultural product becomes unmarketable through no fault of your own.

If you are applying for an advance on a crop before the product is harvested, you will need one of the two programs to secure the advance until the product is harvested. You could, however, choose to wait until harvest to apply for the advance, and get an advance based solely on what you have in storage.

Currently, all shareholders of a corporation, members of a co-op, or partners in a partnership must sign and be held jointly and severally liable for the entire  advance. A recent change was made to the legislation and regulation to allow for a guarantee in lieu of this joint and several guarantee requirements. An administrator may now accept a guarantee from a financial institution or from one or more individuals who can prove that they have the financial collateral issue such a guarantee. This could be one or more of the shareholders/members/partners, or a third party.

If you do not see your commodity listed on any of the Advance Payments Program administrator’s websites please contact one or more of the administrators directly. They will work to determine if your commodity is eligible for an advance and if not they will provide you with alternative suggestions.

Though application processing time can vary from administrator to the next, the length of time it that it will take for a producer to receive funds into their accounts after the submission of a complete application form is generally 10-14 business days. However, high application volumes and incomplete application forms may result in delays. For more information on service standards please contact the Advance Payments Program administrator to which you are applying for more detail.

No, the estimated value of the commodity for which you are seeking an advance cannot be appealed. The value of your advance is based on your estimated production multiplied by the commodity value as determined by the federal government and limited to your security (i.e. AgriInsurance, AgriStability).
If an administrator feels that the advance rate per production unit is incorrect, they can request that the Minister review the advance rate. The administrator would likely be asked to support any increase in advance rate by providing reliable market data.

The first $100,000 of your Advance Payment Program loan is interest free. Interest on the balance of your loan (over $100,000 to the maximum limit) is determined by your administrator, however, most administrators charge either prime or prime minus 0.25%.

AgriStability

The Federal-Provincial-Territorial governments wanted to enable Alberta producers affected by the Canada/China trade dispute to have access to business risk management programs to assist them in managing significant risks. AgriStability works for producers when there are barriers to the market, which are beyond their capacity to manage.

The deadline has been extended by 60 days to July 2, 2019.

If you are a participant of the AgriInvest, part of the business risk management program, you can withdraw monies from either Fund 1 or the Fund 2.

Yes. In order to support Canadian producers, the government has temporarily increased the loan limits for the Advance Payments Program to help ease cash flow pressures.

The changes are:

  • Advances of up to $1 million will be available on all commodities, more than double the previous limit of $400,000
  • The first $100,000 will remain interest free on all commodities, except canola. Canola advances will be eligible for up to $500,000 (total) interest free.

AgriStability targets assistance to farm operations facing large margin declines caused by production loss, increased costs, or market conditions.

AgriStability calculates a production margin (current year) and a reference margin (Olympic average of your five most recent production margins). If your production margin falls below your payment trigger (70 percent of your reference margin), AgriStability will pay you 70 percent of the difference.

Your production and reference margin are unique for your operation as they are built using your income tax and supplementary information. AgriStability benefits are paid after your tax year is complete and you have submitted your tax and AgriStability supplementary forms.

AgriStability is a low cost program. The cost works out to an approximate fee of $315 for every $100,000 of your reference margin.

CAP is the new five year Federal-Provincial-Territorial agricultural agreement in effect as of April 1, 2018. The agreement covers AgriStability Program Years 2018-2022. Any Program Year ending in 2018, before or after April 1, will be processed under the CAP rules. For example, if you have a February 28, 2018 fiscal year-end your claim will be processed under CAP rules.

The CAP agreement includes four changes to AgriStability:
1. Adjusted Reference Margin Limit: Reference Margins subject to limiting are now guaranteed at least 70% of their calculated Olympic Reference margin.
2. Simplified Participation: Reduced information requirements for both the issuance of fees and the calculation of reference margins.
3. Minimum Benefit Calculation: Benefits must calculate to $250 or greater to be received by Participants.
4. Late Participation: A provision in the agreement which allows for extending the deadlines for participation. Late Participation may only be enacted when a significant portion of the province has experienced an agricultural disaster.

Under CAP, the Reference Margin Limit will now be adjusted to ensure a more equitable level of support for Participants impacted by the limit. Participants subject to limiting are now guaranteed at least 70 per cent of their calculated Olympic Average Reference Margin, known as the Adjusted Reference Margin Limit.

1. Simplified enrolment for issuance of fees: if there is not enough information in AFSC records to calculate a fee, your fee will be calculated using industry benchmark information based on your estimated program year productive units.

2. Reduced information requirements for calculating a benefit: new participants or participants who have been out of the program for at least four years prior to the program year can choose to supply three years of tax and supplementary information rather than five years. If they choose to submit only three years, their reference margin will be the average of the last three years rather than the five-year Olympic Average.

A minimum payment of $250 was introduced for the program years 2018-2022. Essentially, if a producer’s benefit calculates to less than $250, it will not be paid to the producer.

Example:
Version 1 of a benefit calculates to $150. No benefit is paid.

Version 2 is processed and the benefit amount is now $300. $300 is paid to the participant.

Version 3 is processed and the new benefit amount is $350. An additional $50 is paid to the producer. Note that the net benefit on version 3 is less than $250 but the gross benefit is greater than $250.

Late participation will only be offered in program years that have experienced a significant agricultural disaster and whereby both the federal and provincial governments have agreed jointly to extend the deadline for participation. This provision will include a 20 per cent penalty on any benefits.

Late participation provisions will be effective for the 2018-2022 program years (CAP Agreement).

The Projected Reference Margin Calculator is intended to provide participants with an approximation of what their Applied Reference Margin will be for the 2018 Program Year.

You will need :

  • Copy of your 2016 Confirmation of Program Benefits Package (COPB)
  • Copy of your 2016 crop and livestock inventory worksheets
  • 2017 tax information and accrual information
  • 2016 Structural Change Adjustments Report
  • Access to AFSC’s published prices, which are available here.

AgriStability is a whole farm program that covers all commodities produced on your farm whereas AgriInsurance provides coverage on a crop by crop basis, and offers spot loss coverage for specific perils.

Although both programs cover production loss, AgriStability also covers other risks such as rising input costs, price volatility and commodity loss due to fire or spoilage.

AgriStability, when combined with AgriInsurance, can help manage your overall risk.

If you have not participated in AgriStability before or are wishing to rejoin the program, either complete the AgriStability Application for Fee Notice or provide a written request indicating your intent to participate by April 30 of the Program Year in which you wish to participate.

Pay the fee. The fee is approximately $315 per $100,000 of your reference margin. There is a minimum Enrolment Fee of $45 and an Administrative Cost Share fee of $55. Fees must be paid by April 30 to avoid a 20% penalty. Fees can be paid up to December 31 of the Program Year with penalty.

File your income taxes by the deadlines established by CRA.

Submit your application forms. Participants must submit completed Supplementary forms by the established deadlines. The deadline is September 30 of the following calendar year. Supplementary forms will be accepted until December 31, subject to a penalty.

AFSC receives a high volume of claims in the month of September. Participants are encouraged to file their information early.

As all applications are subject to review, you may be contacted for additional information. Upon completion of processing, participants will receive a Calculation of Program Benefits (COPB). You will have 18 months from the date on the COPB to request adjustments to your information.

Participants facing a financial crisis may contact AFSC to have their file prioritized; however, they will be required to outline their circumstances in writing via email, fax, or mail.

AgriStability participants can choose from the following payment options:

  1. Payment at your bank – be sure to bring your Remittance Form
  2. Telephone banking – contact your bank and provide your subscription number
  3. Internet banking – contact your bank and provide your subscription number
  4. Payment in person or by mail – at any AFSC office

Changing what I produce
If you change commodities, expand or downsize your operation, AgriStability will adjust your reference margins to reflect your current operation. This is referred to as “structural change”.

Changing my legal structure
If you change the legal structure by incorporating, your fee, reference margins and production history will be transferred to the corporation. Corporations must submit Financial Statements, T2 Schedule 1 and an accrual to tax. Beginning in 2018, corporations must submit the tax information using the Alberta Statement A for Corporations/Co-operatives/Other Entities.

Changing circumstances due to death of a participant
The executor/beneficiary is responsible to ensure the estate meets AgriStability deadlines and requirements.
To help explain the steps that need to be followed when handling estate issues for AgriStability claims, refer to Technical Information Circular (TIC) #2 – Estates and Deceased Individuals. It can be found here.

If you no longer want to participate, you may opt out of the Program by providing written notice to AFSC. Written notice must be received by the enrolment notice deadline, April 30 of the program year you wish to opt out or 30 days after the issuance of your enrolment/fee notice. By opting out, you will be ineligible for benefits in the program year in which the opt out occurs. If you do not opt out by the deadline, your fees will still be owing and payable.

You can get back in by sending an Application for Fee Notice or a written request to enroll by April 30th of the program year in which you wish to participate.

Yes. Individuals who file their taxes on a T1163 Statement A will have their information sent to the AgriInvest Administration directly from CRA.

Corporations that participate in the AgriInvest Program should continue to submit their tax information to AFSC by the deadline of September 30. Beginning in 2018, corporations must submit their tax information on the Alberta Statement A for Corporations/Co-operatives/Other Entities. Clearly identify “AgriInvest only” on the first page.

Once enrolled you are considered to be participating until we receive an opt out request form. If you did not “opt out” of the program, your fees are still owed even though you may not have participated in the program. You will be sent a new enrolment/fee notice for the current year because you have not opted out of the program.

Call Contact Centre at 1.877.899.2372. Staff can assist with questions, forms, assistance with myAFSC, and can forward your call directly to staff working within the AgriStability Program.

Connect via myAFSC. Producers and authorized representatives have 24 hour access to:

  • File information through eForms
  • Update contact information
  • View historical information
  • Check the status of their AgriStability application.

Visit any AFSC office. There are offices throughout Alberta. Find an office on the Contact page.

myAFSC is an online portal that participants and their authorized representatives can use to submit supplementary form information.

If you are having problems with myAFSC or you would like a copy of your pre-populated forms, you can contact the Client Contact Centre at 1.877.899.2372.

Crop Insurance

If your crop has not been inspected and you are ready to begin harvest, please contact your AFSC office to obtain approval to leave representative inspection strips. Inspectors will use these strips to assess your crop’s damage, while still allowing you to begin or continue to harvest or swath. These strips are your responsibility to maintain, and they must meet the following criteria:

  • Leave a strip in from the field’s edge at a distance of one-third the width of that field.
  • Each strip should be a minimum of 10 feet wide and span the full length of the field.
  • Fields less than 100 acres require 2 strips.
  • Fields over 100 acres require an additional strip, for a total of 3 strips.
  • Fields that span multiple quarter sections require each quarter section to be treated as separate fields.

Inspection Strips

Fields over 100 only_diagram3

Report hail damage in person, by phone, fax or email using the ‘Client Reported Hail Claim Information’ form that was included with your billing or available here. Reporting via this form will ensure that we receive all the necessary information and are able to promptly set up your claim.

Assess your fields following a hail storm. Having non-damaged fields on your claim increases the overall workload and can impact wait times.

Plan to accompany the adjuster when they arrive, or know exactly where to direct them. Be able to show the adjuster where the damage is, and how to access the fields.

Helpful information for next season

You can choose to auto-elect Straight Hail Insurance in the spring when you completing your crop election. This reduces the need for an acceptance inspection if hail hits first, which reduces AFSC’s adjusting team’s workload. Choosing to auto-elect Straight Hail Insurance also saves producers 2% on premiums and coverage is in affect the day crop emerges and is viable.

If you don’t plan to harvest your crop, area-based programs are an alternative for silage crops and do not require pre-harvest or post-harvest field inspections. Under the Silage/Greenfeed program, you won’t need to wait for an inspector to appraise your crop. However, an inspector visit will still be required for hail damage inspections.

Agriculture Financial Services Corporation (AFSC) insurance clients can choose from the following payment options:

  1. Payment in person. Bring a cheque, money order or bank draft to any AFSC office or mail to the AFSC Central Office (Lacombe).
  2. Payment at your bank. Be sure to bring your subscription number.
  3. Internet banking. Add AFSC as a payee and use your subscription number for the account information. If you have multiple subscriptions, you will need to setup a separate AFSC payee for each subscription.
  4. Telephone banking. Contact your bank and provide your subscription number.

When AFSC receives payments by June 25 or within 15 days of the billing date, a 2 percent early payment discount is credited to the client. AFSC will also accept cheques that are postmarked to June 25. This does not apply to the Western Livestock Price Insurance Program (WLPIP).

Follow these steps to assign insurance for collateral with Agriculture Financial Services Corporation (AFSC). Assignees must be an AFSC client.

  1. Complete the Assignment of Indemnity Form for Insurance and attach to the form a $45 non-refundable fee for each assignment that is submitted.
  2. Ensure all information is correct, and signatures (including a witness signature) are provided.
  3. Mail the form to:

Agriculture Financial Services Corporation
Finance
5718 56 Avenue
Lacombe, Alberta T4L 1B1

When completed documents are received, the assignment will then be registered by AFSC and sent to the insured and the assignee. Applications are processed on a first come, first served basis.

An Appeal Committee reviews an appeal by an insured individual who challenges a decision made by Agriculture Financial Services Corporation (AFSC).

To initiate an appeal:

  1. Complete the Notice of Appeal and ensure all information is correct.
  2. Attach the $300 appeal fee to the form. This fee will be refunded should the appeal be decided in your favour.  Note: For issues relating to the 2016 crop year the appeal fee will remain at $100 .
  3. Deliver it to any AFSC office or mail it to:

Agriculture Financial Services Corporation
Finance
5718 56 Avenue
Lacombe, Alberta T4L 1B1

  1. Upon review of the application, AFSC may request to meet with you to explain relevant corporate policies.
  2. If unresolved, the application will be submitted to an Appeal Committee.
  3. The appeals secretary will be in contact to arrange a date and location of the appeal.

Additional information may be found in the Appeal Brochure

AFSC only accepts the receipted grade on sales from buyers that have a primary elevator or terminal elevator license from the CGC.

Grain buyers can be licensed in several classes by the Canadian Grain Commission (CGC) and the requirements differ for each grain class. Only in the terminal elevators and primary elevator classes are the licensees required to sample upon receipt and resolve grade and dockage issues through the CGC.

The following link shows the class of license for the individual grain companies www.grainscanada.gc.ca.

If grain is sold to a grain dealer, private buyer or process elevator before an AFSC on-farm inspector (OFI) performs a post-harvest inspection, AFSC may use the client’s samples based on the following conditions:

1. Clients need to contact their AFSC branch office and obtain approval to collect samples for AFSC grading purposes prior to the grain being removed. If clients do not receive approval before the grain is removed, AFSC will use the designated grade of the grain.

If grain is sold directly off the field:

  • if the sample is acceptable, AFSC will grade it and use the actual grade.
  • if the sample is not acceptable, AFSC will use the designated grade of the grain.If grain is sold from the bin and there is a minimum of 400 bushels remaining in the bin, OFI will compare the client’s sample to the grain in the bin to determine if the sample is acceptable:
  • if the grain sample is acceptable, it will be graded accordingly.
  • If the sample is not acceptable, a new sample will be taken from the bin.
  • if the sample is not acceptable and there are less than 400 bushels remaining in the bin, AFSC will use the designated grade of the grain. If the bin is being emptied, or if there will be less than 400 bushels remaining, clients can contact their branch prior to moving the grain for AFSC to come sample the grain before it is moved.

2. If approval is obtained, AFSC must receive a representative grain sample per truckload if sold off the field, or per bin. Sampling requirements are as follows:

  • Grain must be collected in a five-gallon pail that preserves moisture content, maintains sample integrity, and keeps out rodents and insects.
  • The sample needs to be obtained intermittently, such as while the grain is loaded into trucks for sales directly from the field or from each truck while unloading into bins.
  • Samples are to be stored in a manner acceptable to AFSC, and represent the quality of the crop that was sold.If a client saves a sample and AFSC determines that it is unrepresentative, AFSC will assign the grain its designated grade.For more information about this process, visit a local branch, send an email to info@afsc.ca or call 1.877.899.2372.

Contact AFSC if a hail storm has damaged your crop. You have up to 14 calendar days after the date of the storm to report damage to your fields. This time period should allow you a chance to check your fields for damage prior to reporting. If fields are hit again before they have been inspected, you need to file an additional damage report.

Please call us if you plan to put your crop to use for anything other than harvesting, such as silage, baling, pasturing or plowing down. We recommend giving five days’ notice prior to putting the crop to another use.

Agriculture Financial Services Corporation (AFSC) annually conducts production audits to verify the accuracy of our clients Harvest Production Reports. We do this in order to ensure we maintain the Annual Crop Production Insurance Program’s integrity and accuracy of the insurance coverage provided to our clients.  Each year, a five per cent sample of AFSC clients who have purchased production insurance for that crop year is randomly selected for audit.  This fundamental process has been in effect for a number of years.

When clients secure crop insurance, they agree to AFSC’s Contract of Insurance. The contract entails the obligation that clients allow AFSC immediate access to production records, lands and grain storage facilities for the purpose of an audit. Failure to meet this obligation is deemed a breach of the Contract of Insurance. The consequences of a breach are:

  • the insured production level for the crop year in question will be recorded as zero, and;
  • the client becoming ineligible to secure crop insurance with AFSC for the next two years.
Hail Insurance

If your crop has not been inspected and you are ready to begin harvest, please contact your AFSC office to obtain approval to leave representative inspection strips. Inspectors will use these strips to assess your crop’s damage, while still allowing you to begin or continue to harvest or swath. These strips are your responsibility to maintain, and they must meet the following criteria:

  • Leave a strip in from the field’s edge at a distance of one-third the width of that field.
  • Each strip should be a minimum of 10 feet wide and span the full length of the field.
  • Fields less than 100 acres require 2 strips.
  • Fields over 100 acres require an additional strip, for a total of 3 strips.
  • Fields that span multiple quarter sections require each quarter section to be treated as separate fields.

Inspection Strips

Fields over 100 only_diagram3

Report hail damage in person, by phone, fax or email using the ‘Client Reported Hail Claim Information’ form that was included with your billing or available here. Reporting via this form will ensure that we receive all the necessary information and are able to promptly set up your claim.

Assess your fields following a hail storm. Having non-damaged fields on your claim increases the overall workload and can impact wait times.

Plan to accompany the adjuster when they arrive, or know exactly where to direct them. Be able to show the adjuster where the damage is, and how to access the fields.

Helpful information for next season

You can choose to auto-elect Straight Hail Insurance in the spring when you completing your crop election. This reduces the need for an acceptance inspection if hail hits first, which reduces AFSC’s adjusting team’s workload. Choosing to auto-elect Straight Hail Insurance also saves producers 2% on premiums and coverage is in affect the day crop emerges and is viable.

If you don’t plan to harvest your crop, area-based programs are an alternative for silage crops and do not require pre-harvest or post-harvest field inspections. Under the Silage/Greenfeed program, you won’t need to wait for an inspector to appraise your crop. However, an inspector visit will still be required for hail damage inspections.

Contact AFSC if a hail storm has damaged your crop. You have up to 14 calendar days after the date of the storm to report damage to your fields. This time period should allow you a chance to check your fields for damage prior to reporting. If fields are hit again before they have been inspected, you need to file an additional damage report.

Please call us if you plan to put your crop to use for anything other than harvesting, such as silage, baling, pasturing or plowing down. We recommend giving five days’ notice prior to putting the crop to another use.

Loans

Filling out a loan application does not entitle applicants to a loan, we encourage applicants to contact a Lending Specialist to discuss their proposal before completing any forms. Please call 1.877.899.2372 or visit an AFSC office.

  1. Agriculture Financial Services Corporation (AFSC) requires that you gather:
    1. Three years financial statements/income tax history
    2. Birth certificate or proof of Canadian citizenship for non-corporate applicants
    3. A certificate of owner/shareholders
    4. Information regarding products/services offered, key clients/industries serviced. View Elements of a Financial Proposal to guide you.
  2. Complete the following forms:
    1. Application for Loan Business
    2. Personal Financial Statement (complete for all shareholders)
    3. Personal History (complete for all key management personnel)
    4. Projection of Income and Expenses
    5. Schedule of Ownership and Management
    6. Credit Information Request
  3. Bring all of the above to an AFSC office near you.

Filling out a loan application does not entitle applicants to a loan. We encourage applicants to contact a Lending Specialist to discuss their proposal before completing any forms. Please call 1.877.899.2372 or visit any AFSC office.

  1. Agriculture Financial Services Corporation (AFSC) requires that you gather:
    1. Three years financial statements/income tax history
    2. Birth certificate or proof of Canadian citizenship for non-corporate applicants
    3. Bill of sale/offer to purchase for asset purchases
  2. Complete the following forms:

Application for Loan
Personal History (complete for all key management personnel)
Statement of Assets and Liabilities
Credit Information Request
Farm Operating Statement: Farm Operating Statement Instructions  Farm Operating Statement

  1. Bring all of the above to an AFSC office.

Filling out a loan application does not entitle applicants to a loan. We encourage applicants to contact a Lending Specialist to discuss their proposal before completing any forms. Please call 1.877.899.2372 or visit any AFSC office.

  1. Agriculture Financial Services Corporation (AFSC) requires that you gather:
    1. Three years financial statements/income tax history
    2. Birth certificate or proof of Canadian citizenship for non-corporate applicants
    3. Bill of sale/offer to purchase for asset purchases
  2. Complete the following forms:

Application for Loan
Personal History (complete for all key management personnel)
Statement of Assets and Liabilities
Credit Information Request
Farm Operating Statement: Farm Operating Statement Instructions  Farm Operating Statement

  1. Bring all of the above to an AFSC office.

Loan program participants can choose from four options to make loan payments:

  • Set up an automatic bank account withdrawal for the 1st or 20th of each month. To do this, complete the pre-authorized payment form and send it to any AFSC office.
  • With a current or post-dated cheque. These can be delivered in person or mailed to any AFSC office.
  • In person at most chartered banks or financial institutions. Remember to bring an AFSC payment notice slip.
  • Telephone and internet banking. Payments can be made where AFSC is registered and clients have set this service up with their bank.

Agriculture Financial Services Corporation (AFSC) staff are ready to help make loan payments as easy as possible. Call 1.877.899.2372, email info@afsc.ca or visit any AFSC office for more information.

Unharvested Acres

Business Risk Management Programs that AFSC offers, which include AgriStability, AgriInsurance, and AgriInvest, are designed to help clients actively mitigate many of the potential effects of weather-based disasters. Should adverse weather conditions prevent harvest from being completed before winter sets in, AFSC will extend coverage beyond November 30 for clients in areas with snowed-under crops. This extension provides annual crop production coverage on unharvested insured acres, until harvest is completed in the spring.

The deadline to file the Harvested Production Report (HPR) is November 15. AFSC understands harvest may not be completed by this date; however the HPR is required for the client to be eligible for potential claims, extensions to coverage, Unharvested Acreage Benefits or Supplementary Advances.

The Unharvested Acreage Benefit and Supplementary Advance are in place to assist clients.

The requirements to be eligible for an Unharvested Acreage Benefit include:

  • Harvested Production Report received by November 15
  • Harvested production including pre-harvested acres, on a crop-by-crop basis is below their coverage (based on the HPR submitted);
  • More than 20 per cent of the total acres of the insured crop remain unharvested at the time of the assessment;
  • AFSC considers it impractical to have harvested the crop; and
  • In AFSC’s opinion, the client had access to adequate equipment and labour to harvest the crop.

If the client is eligible for an Unharvested Acreage Benefit, AFSC Inspectors will complete an assessment to validate harvested production and unharvested acres. Any acres harvested after the HPR is filed will be considered harvested and added to the HPR at the time of the assessment.

Supplementary Advance
Clients may also be eligible to access up to 50 per cent of their estimated post-harvest indemnity to assist with capital needs if in a significant production shortfall after the estimated unharvested and harvested production acres are combined.
Both the Unharvested Acreage Benefit and Supplementary Advance will be deducted off the final benefit calculations after harvest has been completed in the spring.

UH calculations

If you decide to do something other than combining (pasture, bale, etc.), contact your branch office to arrange a yield assessment on these acres. AFSC On Farm Inspectors will release the acres put to another use.

AFSC provides a production guarantee and is required to account for the total production of the crop, taking into consideration yield, grade, weight and dockage. From AFSC’s past experience, many snowed-under crops are harvested in the spring and most of these crops can be sold or used as feed. AFSC does recognize some of these crops may be severely discounted in the marketplace; this will be taken into account when these claims are finalized.

 

AFSC will only consider viable crop to determine yield. Sprouted and moldy kernels are not included in determining the yield count for the unharvested crop. Harvested grain will be graded according to the Canadian Grain Commission standards.

The designated grade for canola is 1 CAN. Grade factors for every crop are determined each year based on the value of the grade of the grain compared to the designated grade and applied to the harvested production. This will reduce the yield in determining the final indemnity payment.

If you decide to do something other than combining (pasture, bale, etc.), contact your local branch office to arrange a yield assessment on these acres. AFSC On Farm Inspectors will release the acres put to another use. Spring harvested production should be kept separate from fall harvested production.

 

Damage and quality loss will be accounted for once the final yields are determined after harvest is completed.

Where an extension of insurance coverage is provided, wildlife damage will also be honoured. Contact your branch office to arrange another wildlife inspection to reassess the crop.

For the fields assessed for wildlife damage, a claim payment will be provided once AFSC has confirmed harvest is complete.

WLPIP

Volatile market prices along with basis and the Canadian dollar all influence the financial return to a livestock operation and can be hard to manage. WLPIP is designed to reduce the financial risk to producers in Western Canada and protect against market unknowns.

Premiums are strongly influenced by market volatility and can increase due to factors facing the market. Premiums can also be quite economical when market volatility is relatively low. WLPIP offers a wide range of coverage which allows a producer to tailor their level of protection to the risk they want to insure and premium to the budget they can afford.

When a producer purchases a WLPIP insurance policy, it protects the producer’s investment on calves, feeders and fed calves and hogs. This program allows producers to pocket the increase in the market price while still having the peace of mind of protection from a potential market downturn.

If the fund goes into a deficit position, the Government of Canada and your provincial government cover the program. Producers have no risk that policies are not paid because the fund is in a deficit position. Existing policies will be honoured even in the case of a border closure or similar catastrophic market event.

Historically, the volume of calves sold outside of the fall calf run has been too low to provide the accurate market data needed to generate coverage and premium levels. Calf policies are offered from February 1 to May 30, 2019.

Absolutely. A producer can overlap a feeder policy on a calf policy and have a fed policy overlap a feeder policy all on the same weight.

WLPIP policies are settled based on the average price of electronic and auction mart sales, not on the sale of the livestock covered by your WLPIP policy. Breed or animal conditions do not influence settlement of individual policies.

Whether the market is high or low, there is still the need to protect one’s equity. WLPIP is a risk management tool meant to mitigate risk throughout the entire market cycle. When the market drops, WLPIP provides producers with a floor price; if prices increase over that period of time, a producer can benefit by selling livestock as he or she sees fit. WLPIP doesn’t limit producers to the floor price if the market goes up.

WLPIP does not require you to sell your animals. To mitigate risk, a  producer should match his or her policy lengths to the sale of their cattle, but if conditions change there is no commitment to sell livestock at a specific time. Producers do not need to provide documentation of sale because policy settlement is not determined from individual producer sales. It is based on the average cash price obtained from electronic and auction mart sales data.

Yes, heifers can be insured under any one of the Cattle Price Insurance Programs. However, coverage and settlement of the Feeder and Calf programs are based on average weekly steer prices. Indemnity is based on a comparison between the published steer settlement price and the producer’s chosen level of insured coverage. The difference determines if there was a decline in projected cattle prices from the time the producer purchased the policy.

Follow these steps to assign insurance for collateral with the Western Livestock Insurance Program (WLPIP). Assignees must be a WLPIP participant.

  1. Complete the WLPIP Assign of Indemnity form
  2. Ensure all information is correct, and signatures (including a witness signature) are provided.
  3. Mail the form to:

Agriculture Financial Services Corporation
Finance
5718 56 Avenue
Lacombe, Alberta T4L 1B1