Canadian Agricultural Partnership agreement on agricultural policies and programs comes into effect in April, replacing
Growing Forward 2.
Increased potential for AgriStability payments
Do you have low expenses compared to your net income?
One of the changes under the new agreement applies to producers who trigger the reference margin limit (RML). These producers will receive a more equitable level of support by lessening the impact of low expenses, which will increase the potential for payment.
AgriStability payments are made when a producer's net income falls below 70 per cent of their reference margin, which is set using the average of their net income
or expenses – whichever is less. New in 2018, a minimum may be applied to that average. This minimum guarantees that a producer's reference margin is at least 70 per cent of their average net
income – no matter how low their expenses are.
The new minimum lessens the impact of extreme differences between average net income and expenses:
|Average net income||$100,000||$100,000|
In the example above, the reference margin has increased by $30,000.
To learn more, call Agricorp to speak with an AgriStability specialist.
Securing your coverage
Renewal packages have been mailed to producers and include current coverage details. Producers can secure 2018 coverage by reviewing the documents and paying the fee by the due date on their invoice. Participating in AgriStability is an affordable way to prepare for the unexpected.
AgriStability provides producers with peace of mind when they need it most.