AgriStability — Alberta
Canada
Insurance to protect farming operations
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateApril 01, 2023
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Agriculture Financial Services Corporation
- Government of Alberta
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get financial support to help manage large income declines caused by production loss, increased costs or market conditions.
grant_single_labels|projects
Eligible activities under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) include initiatives that strengthen the competitiveness, innovation, and resiliency of the agriculture, agri-food, and agri-based products sector.
- Research and development projects
- Technology adoption initiatives
- Market development and access activities
- Environmental sustainability practices
- Risk management programs
- Business development and training programs
- Infrastructure enhancement projects
grant_single|admissibleProjectsExample
$200,000
Toronto
Building an innovative greenhouse to enhance crop yield and efficiency
$200,000
Calgary
Developing a new soil retention technology to enhance farm sustainability
$120,000
Ottawa
Launching a training program for sustainable agricultural practices
$160,000
Montreal
Creating a marketing campaign to promote local organic products
$160,000
Vancouver
Adopting new irrigation technology to reduce water usage
$160,000
Halifax
Implementing an organic waste management system on the farm
grant_single_labels|admissibility
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
grant_eligibility_criteria|who_can_apply
AgriStability is available to Canadian agricultural producers who report farming income to Canada Revenue Agency (CRA) and are farming in Canada. Eligible participants need to complete six months of consecutive farming activity and a production cycle.
- Canadian agricultural producers
- Report farming income to CRA
- Operate farming activities in Canada
- Complete six months of consecutive farming activity
- Complete a production cycle
grant_eligibility_criteria|eligible_expenses
Yes, there are eligible expenses for this grant. Allowable expenses include costs directly related to the farming operation.
- Commodity purchases
- Direct input costs
grant_eligibility_criteria|zone
The grant is available to producers farming in Canada. This encompasses all geographic zones within the country's boundaries.
- Farming in Canada
grant_single_labels|register
- Step 1: Determine Eligibility
- Ensure your farming operation meets the eligibility criteria, including having completed six months of consecutive farming activity, farming in Canada, reporting farming income to the CRA, and paying the AgriStability fee.
- Step 2: Enroll in AgriStability
- If you are new or have been out of the program for four or more years, you need to enroll by providing the necessary information, possibly three years of tax and supplementary information.
- Step 3: Submit Required Documentation
- Complete the necessary forms and submit them along with your tax and supplementary information.
- Step 4: Pay Program Fee
- Pay the required AgriStability fee, which is $315 for every $100,000 of reference margin support.
- Step 5: Apply for Interim Advance (Optional)
- If desired, apply for an interim advance to receive a portion of the estimated benefit early.
- Step 6: Monitor and Submit Final Claim
- Monitor the financial performance of your farming operation and submit the final claim at the end of the program year to receive the full AgriStability payment if eligible.
grant_single_labels|otherInfo
Here are some additional details about the AgriStability program:
- AgriStability provides Canadian producers with an ongoing whole-farm risk management tool that offers protection against large declines that threaten the viability of their farm and are beyond their capacity to manage.
- The Sustainable CAP's agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial, and territorial governments.
- Participants in the AgriStability program can apply for an interim advance, allowing them to receive a portion of the estimated benefit early.
- The program's compensation rate has increased to 80 per cent under Sustainable CAP, which is in effect for the 2023 program year.
- Simplified participation is offered for new participants or those who have been out of the program for at least four years, allowing them to submit three years of tax and supplementary information instead of five.
grant_single_labels|contact
info@afsc.ca
1.877.899.2372
Apply to this program
Overview of AgriStability Program
The AgriStability program is a critical component of Canada's agricultural risk management strategy, designed to help Canadian farmers manage significant income declines that threaten the viability of their operations. By offering protection against large declines in income due to production loss, adverse market conditions, and increased costs, AgriStability provides farmers with ongoing support and stability for their farming businesses.
Understanding the AgriStability Grant: Comprehensive Guide
Canada's agricultural sector plays a pivotal role in the nation's economy, contributing extensively to both domestic consumption and international trade. However, farming and agriculture are inherently risky industries, subject to myriad unpredictabilities such as extreme weather events, pest invasions, fluctuating market prices, and rising input costs. To address these challenges and secure the livelihoods of farmers, the Canadian government offers several business risk management programs, with AgriStability being one of the most notable.
Launched under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), AgriStability is a whole-farm risk management program designed to stabilize farm income and provide essential support in times of financial distress. This program is particularly vital for farmers who experience significant income declines that are beyond their capacity to manage. Here, we delve into the key aspects of the AgriStability program, its benefits, eligibility criteria, and recent updates to help farmers understand how they can leverage this support system for their benefit.
How AgriStability Works
At its core, AgriStability aims to protect farm income based on all commodities produced by the farm, rather than focusing on individual crops or livestock. This whole-farm approach ensures comprehensive coverage and better reflects the overall financial health of farming operations. The program calculates support levels based on a farm's production margin, which is determined by subtracting allowable expenses from allowable income, and then adjusting for changes in inventories, accounts receivable, accounts payable, and purchased inputs.
Allowable income includes all proceeds from agricultural commodity sales and production insurance, while allowable expenses cover commodity purchases and direct input costs incurred in the farming operation. If a participant's production margin falls below 70% of their reference margin (based on the farm's historical financial performance), AgriStability provides compensation for the decline.
Benefits and Compensation Rate
Under the Sustainable Canadian Agricultural Partnership, several key changes were made to enhance the AgriStability program for the 2023-2028 period. One of the most significant changes is the increase in the compensation rate from 70% to 80%. This means that for every dollar of income decline that exceeds 30% of the reference margin, participants will now receive 80 cents in support, up from the previous 70 cents. This enhancement makes AgriStability a more attractive and valuable tool for farmers facing substantial revenue losses.
Another important update is the removal of the reference margin limit, which took effect retroactively from the 2020 program year. The reference margin limit was a cap that restricted the amount of support farmers could receive based on their historical margins. Removing this limit simplifies the program, making it more responsive and equitable for all types of farming operations. It is estimated that about half of the participants will benefit from this change, with their coverage potentially increasing by up to 30% over time.
Why Choose AgriStability?
There are several compelling reasons for Canadian farmers to participate in the AgriStability program:
- Whole Farm Protection: The program offers comprehensive coverage for all commodities produced by the farm, ensuring that farmers receive support based on their entire operation.
- Unique Coverage: Each participant's coverage is tailored to their specific farm history, providing personalized and accurate support levels.
- Financial Assistance: AgriStability provides crucial financial assistance to farmers who experience income declines greater than 30% due to various adverse conditions.
- Access to Credit: Participation in AgriStability can enhance access to other credit options and programs, such as the Advance Payments Program (APP), which provides cash advances through various farm commodity organizations.
- Affordable Coverage: The program is designed to be cost-effective, with low participation fees making it accessible to all producers.
Eligibility Criteria
To be eligible for the AgriStability program, a producer must meet several criteria:
- Operate a farming business in Canada and report farming income to the Canada Revenue Agency (CRA).
- Have completed at least six consecutive months of farming activity and a full production cycle.
- Pay the required AgriStability program fee, which is calculated based on the farm's historical financial performance and productive units.
New participants and those who have been out of the program for four or more years can benefit from simplified participation options. These include reduced information requirements for calculating benefits, allowing them to submit three years of tax and supplementary information instead of five. If they choose this option, their reference margin will be based on the average of the last three years, rather than the five-year Olympic average.
Interim Advances
One of the notable features of the AgriStability program is the availability of interim advances. Producers enrolled in AgriStability can apply for an advance on their expected payment before the program year is complete, providing them with timely financial support. To qualify for an interim advance, a producer must have completed the necessary farming activities, be farming in Canada, report their farming income to the CRA, and have paid their AgriStability fee.
Application Process
The application process for AgriStability involves several steps:
- Enrollment: Producers must first enroll in the program by providing the necessary information about their farming operation and paying the program fee.
- Submission of Forms: Participants need to submit specific forms that outline their farm's financial performance, including tax and supplementary information.
- Calculation of Support: The program administrators will calculate the producer's production margin, reference margin, and any potential benefits based on the provided data.
- Payment: If eligible, participants will receive payments to cover their income decline, with the option to apply for interim advances if needed.
Recent Updates: Sustainable Canadian Agricultural Partnership
The Sustainable Canadian Agricultural Partnership, which came into effect on April 1, 2023, introduced several key changes to the AgriStability program to enhance its effectiveness and accessibility. The most notable update is the increase in the compensation rate to 80%, providing greater financial support to farmers experiencing significant income declines.
The removal of the reference margin limit is another significant change, simplifying the program and making it fairer for all types of farming operations. This update ensures that more farmers can benefit from AgriStability, with coverage levels potentially increasing by up to 30% for some participants.
Additionally, the introduction of simplified participation options for new and returning participants helps streamline the process and reduce administrative burdens. By allowing participants to submit three years of financial data instead of five, the program ensures that more farmers can access the support they need without unnecessary complications.
Conclusion
AgriStability is a vital component of Canada's agricultural risk management strategy, offering comprehensive protection and financial support to farmers facing significant income declines. With recent enhancements under the Sustainable Canadian Agricultural Partnership, the program has become even more valuable, providing increased compensation rates and simplified participation options.
For Canadian farmers, enrolling in AgriStability can be a crucial step towards securing their livelihoods and ensuring the sustainability of their operations. By understanding the program's benefits, eligibility criteria, and recent updates, farmers can make informed decisions and leverage the support provided by AgriStability to navigate the uncertainties of the agricultural industry.
