AgriStability- Government of Canada

Overview of the AgriStability- Government of Canada program:

AgriStability is part of the broader suite of Business Risk Management (BRM) programs designed to support farmers in managing income losses. It offers financial aid when a producer's program year margin falls below 70% of their reference margin, which is based on historical earnings. The program helps ensure stability and ongoing operations for agricultural producers facing significant income shortfalls due to events like drought, flooding, increased feed costs, or decreased market prices. AgriStability is administered provincially in some provinces and federally in others. Producers must enroll each year and pay a fee based on their expected margin. The program operates on a whole-farm basis, considering all farming income and expenses, and is intended to complement other BRM programs such as AgriInvest or private insurance. Producers must file their taxes and submit a harmonized form, which aligns with income tax reporting, for assessment. This ensures consistency and eases the reporting process. It’s particularly useful for operations dealing with unforeseen circumstances and helps maintain cash flow continuity. The program is customizable to individual provinces and sectors, offering flexible and responsive risk management tailored to each participant's needs.

Benefits of the AgriStability- Government of Canada program:

• Financial assistance for substantial income loss due to uncontrollable events.
• Whole-farm coverage that includes all commodities under one plan.
• Stabilizes cash flow during crises, supporting business continuity.
• Complements other programs like AgriInvest and private insurance.
• Margin-based, allowing flexibility for different types of farms.
• Administered locally, allowing for provincial customization and support.

Eligibility criteria of the AgriStability- Government of Canada program:

• Eligible applicants must:
• Be actively farming in Canada and report farming income (or loss) to the Canada Revenue Agency.
• Enroll annually and pay a fee based on their contribution reference margin.
• Operate as an individual, corporation, partnership, or co-operative.
• Maintain and submit detailed income and expense records, typically via the harmonized AgriStability/AgriInvest forms (T1163 for individuals or Statement A for corporations).
• Not be in bankruptcy or under receivership during the program year.
• Participation may be mandatory or optional depending on the province.