Q: What is AgriStability?

AgriStability is a low-cost risk management program for farmers, where coverage is based on individual farm history. It helps manage financial risks by providing support when a farmer’s income falls below a certain threshold.

Q: What changes are being made to AgriStability starting in the 2025 program year?

Starting in 2025, AgriStability will:

  • allow participants to choose between optional reference margin (ORM) and accrual adjusted reference margin (AARM)
  • enable participants who select ORM to request coverage notices
  • move the filing deadline for supplementary forms and tax information to June 30

Q: What other changes have been made to AgriStability to address producers’ concerns with the program’s responsiveness?

Recent changes include:

  • Removal of the reference margin limit in 2020
  • Return to an 80 per cent (80 cents per dollar of support) compensation rate in 2023

Optional reference margin vs accrual reference margin

Q: What is the optional reference margin (ORM)?

The optional reference margin simplifies reporting as accrual and inventory details are not required. Only the farm income reported for tax purposes is considered for determining the reference margin.

The farm income reported for tax purposes, along with accrual, and inventory details for the program year are still required but only if the program participant feels a benefit may trigger.

The optional reference margin is being introduced for the 2025 program year.

Q: What is the accrual adjusted reference margin (AARM)?

The accrual adjusted reference margin (AARM) considers inventory, payables, purchased inputs, and deferrals, requiring more detailed information but providing a more precise calculation.

The accrual adjusted reference margin is the default reference margin, and the one currently used for AgriStability.

Q: Does it matter which reference margin I pick?

Yes, it matters. This choice affects how your operation’s finances are reflected.

Optional reference margin reporting may be simpler, but it may not provide a complete picture of your farm’s finances. The accrual adjusted reference margin provides a more precise picture of your operation based on more in-depth financial information.

Q: Can participants switch between ORM and AARM?

New participants who elect the optional reference margin can switch to the accrual adjusted method after their first year. Existing participants can select ORM but cannot revert to AARM until their reference margins over the most recent four program years all use the optional reference margin.

Q: What else do I need to know about the optional reference margin?

Participants who choose the optional reference margin need to be aware this may affect their eligibility for the Advance Payments Program as a confirmation calculation of program benefits will not be issued unless supplementary forms are filed.

Participants will want to take time to carefully consider which reporting option is right for their operation.

Coverage notices

Q: What are coverage notices, and how do they help participants?

Coverage notices provide an estimated reference margin and benefit trigger point for the current program year, helping participants understand their potential support level before filing any forms. This adds dependability and predictability.

Q: Who can request coverage notices?

Only participants using the optional reference margin will be able to request coverages notices for the 2025 program year. We are working to extend this feature to all participants in the future.   

Q: When can participants request coverage notices?

Participants can request coverage notices starting in May 2025, with a final deadline of December 31 of the program year.

Supplementary form filing deadline

Q: What is the new deadline for filing supplementary forms and tax information?

The new deadline is June 30, starting in the 2025 program year. Forms submitted after this date but before September 30 will incur a late filing fee.

The deadline to file taxes to CRA to maintain eligibility has also changed from December 31 to September 30.

Q: What happens if participants miss the June 30 deadline?

Participants can still submit their forms until September 30 but will face a late filing fee of $500 per month, up to a maximum of $1,500. If no benefit is calculated, no penalty will be applied. Missing the September 30 deadline will result in the participant becoming ineligible for that program year.

Q: How can participants learn more about AgriStability?

Participants can contact an insurance relationship manager at their preferred AFSC branch office, call the Client Care Centre at 1.877.899.2372, or email info@afsc.ca.