Answers to some frequently asked questions...
Questions
Answers
Why should I join CAIS? I have Production Insurance and the price is set for my supply managed commodity sales.
Although supply management protects the dairy and poultry farms from price risk, supply management does not protect a dairy or poultry farm from losses due to disease, reduced cattle sales due to BSE, and - in the short term - rising input costs. The CAIS program on the other hand is a whole farm program. Farmers who produce supply managed commodities have considerable potential to benefit from CAIS if they have a margin decline. The CAIS program helps protect a producer's historical income or reference margin by calculating a producer's reference margin. A CAIS payment is triggered if, in the program year, the producer's production margin falls below the reference margin. The size of the payment will depend on several factors including:
- the degree of the production margin decline when compared to the reference margin
- the percentage of farm income derived from supply managed commodity sales.
