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.
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.
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.
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.
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.
AgriStability is funded in accordance with the Canadian Agricultural Partnership (CAP) Framework agreement. The agreement is in place from April 1, 2018 until March 31, 2023. It is funded 60 per cent by the Federal government and 40 per cent from the Provincial government for all claim payments and administrative costs.
How AgriStability works
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.
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
2018 - Current Participants
Frequently 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.
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.