AgriStability: Separating fact and fiction

Fiction: Crop insurance is the only risk management tool that’s needed.

Fact: While crop insurance provides protection against specific perils during the growing season, AgriStability provides comprehensive protection when events have a direct and significant impact to the farm’s profit margin.

AgriStability helps producers manage financial losses, including those caused by tariffs. It factors in impacts to margins, whether from reduced income and inventory value or increased input costs.

Fiction: The application process is too complicated and time-consuming.

Fact: It’s easy to apply to be part of AgriStability. To enrol, simply complete an Application for Fee Notice form. Once enrolled, you will receive an enrolment/fee notice. Pay the fee and you are in the program.

Fiction: AgriStability is complex and requires a lot of paperwork.

Fact: AgriStability is a nuanced program that requires participants to submit specific details about their operation. These details allow the program to respond to each producer’s individual situation.

Fiction: New and returning participants have to provide five years of historical information to participate in the program.

Fact: New participants and many returning participants have the option to supply historical information for either the preceding three or five years. This information is used to determine their historical average for the program year.  Allowing new and returning participants to provide fewer years of history contributes to making participation in the program simpler and more accessible.

Fiction: AgriStability only uses an accrual adjusted reference margin and that means I need to submit a lot of information.

Fact: While the accrual adjusted reference margin was the only option for a number of years, recent changes now give producers the option to select their reference margin calculation method based on how they report farm income for income tax purposes.

A new optional reference margin reduces complexity for some participants, removing the need to file accrual and inventory information for their reference periods to the administration.

Fiction: You have to lose most of your income before AgriStability does anything.

Fact: AgriStability offers assistance for events that significantly impact the financial health of a farming operation. It triggers when a farm’s profit margin for the program year is less than 70 per cent of its historical average. Losses experienced beyond the 70 per cent threshold are covered at $0.80 for every dollar of decline, up to a maximum of $3 million or 70 per cent of the overall margin decline, whichever is less.

Fiction: AgriRecovery initiatives cover disasters, like drought or disease, so there’s no need for AgriStability.

Fact: AgriRecovery is a disaster relief framework supported by federal, provincial, and territorial governments. It helps producers with the extraordinary costs of recovering from disasters. However, it does not cover income or production losses, recurring disasters, or replace long-term strategies to mitigate risk.

AgriStability, on the other hand, covers income and production losses and helps with recurring disaster events.

Fiction: AgriStability doesn’t respond to the challenges livestock producers face, especially during dry conditions. 

Fact: Starting in 2026, eligible feed inventory valuation for livestock producers is being changed. This update will help the program respond more effectively during dry conditions.

Additionally, the program will now include pasture rental as an eligible expense to better support producers facing limited feed and pressure on grazing land. This change better captures the true cost of feeding livestock.

Fiction: AgriStability doesn’t respond to trade-related challenges.

Fact: AgriStability supports producers facing trade-related challenges by stabilizing farm incomes during market disruptions, addressing price volatility and trade uncertainty, and supporting farmers facing higher input costs.

Fiction: Enrolment in AgriStability is declining because it’s not effective.

Fact: Enrolment trends can vary, but many producers continue to find value in the program. In Alberta, more than 50 per cent of farm cash receipts are represented in the program.

The effectiveness of AgriStability is demonstrated by the support it provides during challenging times, helping farmers maintain financial stability and continue their operations. For example, AgriStability is providing a robust response to declining crop commodity prices during the 2024 program year.

AgriStability is a key risk management tool for many Alberta producers. If it’s time to make it part of your risk protection, please contact AFSC using Live Chat on our website or AFSC Connect, call the Client Care Centre at 1.877.899.2372 or contact your preferred branch office.

The deadline to enrol for 2026 is April 30.