My farming operation has changed; how will this affect my AgriStability application?
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”. For more information on structural changes, please refer to Technical Information Circular (TIC) #6 – 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 in the format of Statement A. Beginning in 2018, corporations must submit the tax information using the Alberta Statement A for Corporations/Co-operatives/Other Entities.
The transfer of fees, margins and production history is facilitated by submission of the CRA Form T2057, more commonly referred to as a Section 85 rollover tax document, which outlines the effective date of when and how assets are transferred from individual tax filer name(s) into the corporation. If a Section 85 has not been completed or filed with CRA, then we will need a legal agreement (i.e. sales agreement) that includes details such as effective date of the transaction, seller/purchaser names, and assets/inventories sold.
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.