AgriStability
AgriStability is one program in a suite of business risk management programs that governments offer to help producers manage significant risks. Other programs in the suite include AgriInvest, AgriInsurance and AgriRecovery.
The purpose of the AgriStability program is to provide Canadian agricultural producers with an ongoing whole-farm risk management tool that provides protection against large declines that threaten the viability of their farm and are beyond their capacity to manage.
Under the program, allowable income includes the proceeds from agricultural commodity sales and the proceeds from production insurance. Allowable expenses include commodity purchases, along with direct input costs incurred in the farming operation.
Reference margin limit removed from AgriStability
The reference margin limit has been removed from AgriStability for 2021 and 2022. This change will have a significant impact for many producers and is retroactive to the 2020 program year.
This change makes AgriStability less complex, and more responsive to all types of farming operations. We anticipate that approximately half of participants will benefit from the change over time and their coverage could be increased by up to 30 per cent.
For more information on what the removal of the reference margin limit may mean to your farm please see AgriStability sees significant changes with the removal of the reference margin limit
How AgriStability Works: 2020-2022 program years
How AgriStability Works: 2018-2019 program years
Why Choose AgriStability?
Whole farm protection – AgriStability protects your farm income based on all of your commodities.
Unique coverage – Your coverage is based on your own farm history.
Payments in times of financial distress – Provides assistance to producers who experience margin declines greater than 30 per cent due to production loss, adverse market conditions and increased costs.
Access to other credit options and programs – AgriStability can give you access to credit options such as the Advance Payments Program (APP), which provides cash advances through various farm commodity organizations.
Affordable coverage – AgriStability is a low cost risk management program available to all producers.
The AgriStability program is designed to help producers protect their farming operations from income decline. Program participants cannot receive full AgriStability payments until the program year is complete. However, by applying for an interim advance you may receive a portion of the estimated benefit early.
Determining support levels
Production margins result from allowable income less allowable expenses, adjusted for changes in inventories, accounts receivable, accounts payable and purchased inputs. The allowable expenses used in calculating the support level is also adjusted for accounts payable and purchased inputs. Under the program, allowable income includes the proceeds from agricultural commodity sales and the proceeds from production insurance. Allowable expenses include commodity purchases, along with direct input costs incurred in the farming operation.
Interim advances
Producers enrolled in AgriStability are eligible to apply for an advance on their AgriStability payment. New participants may be able to apply for an interim advance payment as long as they are enrolled and have paid the program fee.
To be eligible for an AgriStability interim advance, a producer must:
- Have completed six months of consecutive farming activity and a production cycle.
- Be farming in Canada
- Have reported farming income to Canada Revenue Agency (CRA) as an individual, corporation/co-operative or a trust/communal organization
- Have paid their AgriStability fee
If you are new to AgriStability or have been out of the program for four or more years, you will need to complete a few easy steps to be enrolled in the program.
Learn MoreFrequently Asked Questions
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.
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.
