AgriStability — Ontario
ON, Canada
Insurance to protect farming operations
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Government of Ontario
- Agricorp
grant_single|status
grant_card_status|open
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Get financial support to help manage large income declines caused by production loss, increased costs or market conditions.
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AgriStability protects farmers from significant declines in their farming income due to production loss, increased costs, or market conditions.
- Production loss coverage
- Increased cost coverage
- Market condition coverage
- Interim payments option
- Historical income average calculations
- Income protection for whole farm
- Adjustments for inventory changes
- Expanded or downsized operations adjustments
- Optional consultation with AgriStability specialists
- AgriStability estimator tool usage
grant_single|admissibleProjectsExample
$1,250,000
Calgary
Upgrading crop production facilities due to weather-induced damages in Calgary.
$900,000
Halifax
Mitigating increased feed costs for dairy farm in Halifax.
$1,500,000
Vancouver
Improving market competitiveness for organic vegetable farm in Vancouver.
$1,375,000
Toronto
Expanding poultry farming operations in Toronto to cover increased utility costs.
$1,100,000
St. John's
Rehabilitating fisheries affected by market downturn in St. John's.
$1,200,000
Ottawa
Enhancing productivity of a fruit orchard in Ottawa with new technology.
grant_single_labels|admissibility
To participate in AgriStability, producers must meet certain eligibility criteria. Here are the outlined requirements:
- Farm in Ontario
- Complete a production cycle and at least six consecutive months of farming activity in the program year
- Report farming income or loss to Canada Revenue Agency unless exempt under the federal Indian Act
grant_eligibility_criteria|who_can_apply
To participate in the AgriStability program, the eligible types of entities must be farming operations in Ontario. They need to meet specific agricultural activity and reporting requirements.
- Farm in Ontario
- Complete a production cycle and at least six consecutive months of farming activity in the program year
- Report farming income or loss to Canada Revenue Agency, unless exempt under the federal Indian Act
grant_eligibility_criteria|eligible_expenses
There are eligible expenses for the AgriStability grant. Allowable expenses are directly related to the production of a commodity.
- Feed
- Seed
- Fertilizer
- Pesticides
- Fuel
- Repairs and maintenance
- Veterinary fees
- Utilities
- Property taxes
- Insurance premiums
- Custom work
- Freight and shipping
- Salaries and wages
- Rent or lease expenses
grant_eligibility_criteria|zone
Eligible geographic zones for this grant are limited to Ontario, Canada.
- Farm in Ontario
grant_single_labels|register
- Step 1: Confirm Eligibility
- Ensure you farm in Ontario, complete a production cycle and at least six consecutive months of farming activity in the program year.
- Report farming income or loss to the Canada Revenue Agency unless exempt under the federal Indian Act.
- Step 2: Pay Initial Fee
- Pay the fee by April 30 of the program year.
- Step 3: Submit New Participant Form or Cancel Coverage
- Submit the New Participant Form or cancel coverage by April 30 of the program year if applicable.
- Step 4: Apply for Interim Payment
- If eligible, apply for an interim payment any time in the second half of your fiscal year.
- Ensure the interim payment application is submitted by December 31 of the program year.
- Step 5: Submit Year-End Report and Claim Form
- Submit the Year-end Report and Claim Form by June 30 of the year following the program year.
- Step 6: Submit Required Tax Forms
- For individuals, submit T1163 by June 15 of the year following the program year.
- For corporations, trusts, and special individuals, submit Statement A by June 30 of the year following the program year.
- Step 7: Submit Final Report to CRA
- Report your farm income to the Canada Revenue Agency by December 31 of the year following the program year.
grant_single_labels|otherInfo
The AgriStability program offers flexible support for farmers' financial stability, and there are particular details and exceptions to note for effective participation. Deadlines are crucial and missing them can lead to deductions or additional fees unless exceptional circumstances apply.
- Exceptional circumstances may allow for excusing missed deadlines if proper contact is made with Agricorp.
- There is a minimum fee of $45 for participation, which includes administrative costs.
- The fee for participation is calculated based on an Olympic average of recent production margins, dropping the highest and lowest years.
- Late fee payment results in an automatic coverage renewal with a 20% increased fee.
- If your Year-end Report and Claim Form are late but a benefit is generated, deductions will apply but will not exceed your full AgriStability payment.
- Participants can apply for interim payments if their income has declined substantially and they have completed six months of their fiscal year.
- Interim payments are 50% of the producer's estimated final payment.
- The maximum payment possible under AgriStability in a program year is $3 million.
- The AgriStability estimator tool is available to simulate different scenarios and understand potential benefits.
grant_single_labels|contact
1-888-247-4999
Apply to this program
AgriStability Grant Overview
The AgriStability program offers vital financial protection to Ontario farmers facing income declines due to production loss, increased costs, or unfavorable market conditions. The compensation rate has been increased to 80%, providing enhanced support to the farming community for the same affordable fee.
Understanding the AgriStability Program: A Comprehensive Guide for Ontario Farmers
The AgriStability program is an essential component of Canada's risk management framework for the agricultural sector. Administered by Agricorp in Ontario, this program offers financial protection to farmers who experience significant income declines. Here, we will explore the ins and outs of the AgriStability program, from eligibility criteria to the intricacies of calculating payments and understanding deadlines. This guide aims to provide a thorough understanding of the program to help farmers maximize their benefits and safeguard their agricultural ventures.
What is AgriStability?
AgriStability is a federal-provincial initiative designed to help farmers mitigate financial risks associated with production losses, increased costs, or market disruptions. By offering compensation when a farmer’s net farming income falls below 70% of their recent average, AgriStability serves as a crucial safety net within the broader suite of risk management programs.
Key Features and Benefits
The program's most notable feature is its compensation rate, which has been increased from 70% to 80%, starting with the 2023 program year. This enhancement ensures that farmers receive more substantial support during challenging times without an increase in participation costs. Additionally, the program's design, which uses a farmer's entire agricultural income and expenses to calculate the protection margins, provides coverage that reflects the complexity and variety of modern farming operations.
Eligibility Criteria
To participate in the AgriStability program, farmers must meet the following eligibility requirements:
- Farm in Ontario.
- Complete a production cycle and engage in at least six consecutive months of farming activity within the program year.
- Report farming income or loss to the Canada Revenue Agency, unless exempt under the federal Indian Act.
How AgriStability Works
AgriStability protects farmers when their net farming income (production margin) falls below 70% of their recent average (reference margin). To determine eligibility for payments, two key margins are calculated: the production margin and the reference margin.
1. Calculating Your Production Margin:
The production margin is derived from the farmer's allowable income minus allowable expenses plus inventory adjustments. These allowable income and expenses must be directly related to the production of a commodity. Inventory adjustments are calculated using fair market values to reflect any changes in inventory value.
2. Calculating Your Reference Margin:
The reference margin represents the historical average of a farmer’s net farming income. It is calculated based on an Olympic average of the last five production margins, dropping the highest and lowest values. However, for new farmers with less than three years of production data, industry average margins are used to construct up to three production margins, forming the basis for the reference margin.
3. Adjustments Based on Operational Changes:
In cases where there are significant changes in the commodities produced or the scale of operations, historical production margins are adjusted to ensure accurate comparisons. This means that if a farm expands, the reference margin is increased to reflect the growth. Conversely, if the farm downsizes, the reference margin is decreased accordingly.
Triggering Payments
Payments are triggered when a farmer's net income (production margin) falls below 70% of their average net income (reference margin). The payment is calculated as 80% of the difference between the payment trigger and the production margin. For instance, if a farmer's reference margin is $200,000, the payment trigger would be $140,000. If the actual production margin in a year is $100,000, the program would pay 80% of the $40,000 difference, amounting to $32,000.
Maximum Payment
The maximum payment a farmer can receive under the AgriStability program in a given program year is capped at $3 million. This ensures that the program can provide substantial support even to larger farming operations while maintaining sustainability.
AgriStability Estimator Tool
To assist farmers in understanding how the AgriStability program works and to simulate various scenarios, Agriculture and Agri-Food Canada (AAFC) has developed an AgriStability estimator tool. This online tool allows farmers to enter high-level estimates drawn from their annual Statement of Farming Activities or previous AgriStability Calculation of Program Benefits statements, providing insights into potential program benefits.
Application Deadlines
Timely application and compliance with deadlines are critical to ensuring continuous coverage and maximizing benefits. The key deadlines for the 2023 and 2024 program years are as follows:
Deadlines for 2023 Program Year:
- April 30, 2023: Pay fee, submit New Participant Form, or cancel coverage.
- December 31, 2023: Apply for interim payment and pay fee (final deadline with a 20% increase).
- June 15, 2024: Submit T1163 (individuals).
- June 30, 2024: Submit Statement A (corporations, trusts, and special individuals) and Year-end Report and Claim Form.
- December 31, 2024: Final deadline to report 2023 farm income to the Canada Revenue Agency.
Deadlines for 2024 Program Year:
- April 30, 2024: Pay fee, submit New Participant Form, or cancel coverage.
- December 31, 2024: Apply for interim payment and pay fee (final deadline with a 20% increase).
- June 15, 2025: Submit T1163 (individuals).
- June 30, 2025: Submit Statement A (corporations, trusts, and special individuals) and Year-end Report and Claim Form.
- December 31, 2025: Final deadline to report 2024 farm income to the Canada Revenue Agency.
Interim Payments
Farmers experiencing significant income declines can apply for interim payments anytime in the second half of their fiscal year. These interim payments provide 50% of the farmer's estimated final payment, offering crucial cash flow support when it is most needed. If the fiscal year-end doesn’t align with the calendar year, the deadline is the farmer's fiscal year-end.
Missed Deadlines and Exceptional Circumstances
Submitting the Year-end Report and Claim Form after the deadline incurs deductions from the AgriStability benefits. The deductions are tiered based on the delay:
- Up to the deadline (June 30): No deduction.
- 1 month late (July 1 to July 31): $500 deduction.
- 2 months late (August 1 to August 31): $1,000 deduction.
- 3 months late (September 1 to September 30): $1,500 deduction.
September 30 is the final date for submission, beyond which forms are not accepted. If deductions apply, they are limited to the generated benefit and do not exceed the total payment. In exceptional circumstances, such as natural disasters or serious health issues, farmers may contact Agricorp for potential exceptions to missed deadlines.Fees Structure
Participation in AgriStability involves paying a fee based on the fee reference margin, calculated as an Olympic average of the last five production margins starting two years ago. Farmers pay 0.45% of their fee reference margin multiplied by the 70% coverage level, plus a $55 administrative fee. For example, if the fee reference margin is $100,000, the total fee would be $370: Fee = (Fee reference margin x 0.45% x 70%) + $55 = $315 + $55 = $370. The minimum fee is set at $45. Missing the payment deadline results in an automatic coverage renewal with a 20% fee increase.
Conclusion
The AgriStability program is an indispensable tool for Ontario farmers, providing crucial financial protection against unexpected income declines due to various risks. By understanding the eligibility criteria, application deadlines, fee structure, and the processes for calculating production and reference margins, farmers can effectively manage their risk and ensure the sustainability of their operations. For detailed advice and assistance, farmers are encouraged to consult with AgriStability specialists or use the AgriStability estimator tool to simulate different scenarios and potential benefits.