Producers often have questions about AgriStability. Agricorp Senior Program and Policy Specialist Jeff Janssen answered some frequently asked questions from producers about the program.
Why should AgriStability be part of my risk management plan?
AgriStability is affordable coverage for unexpected large declines in income, such as those caused by unpredictable markets, rising expenses or extreme weather.
From 2013 to 2016, more than $217 million in AgriStability payments was received by Ontario producers.
The federal and provincial governments share the cost of the program – keeping the
fee affordable at just $315 per every $100,000 of a producer's reference margin.
With risk management programs such as AgriStability, producers can be proactive in managing risks while reducing their need for ad hoc solutions. This gives them dependable coverage and peace of mind.
How does AgriStability work with other business risk management programs?
AgriStability and AgriInvest, a savings account with matching government contributions, are based on your tax information. Producers only need to submit their tax forms once for both programs.
AgriStability also works with Production Insurance and Ontario's Risk Management Program (RMP); premiums and payments from these programs are allowable net income and expenses under AgriStability. This may help increase a producer's AgriStability reference margin (the historical average difference between income and expenses), which increases the potential for payment.
In a challenging year, a producer could receive AgriStability, Production Insurance, and RMP payments.
When do I submit a claim?
Producers should submit their
2017 Year-end Report and
Claim Form by
June 30, 2018. Agricorp normally receives two-thirds of AgriStability claim forms near the end of June. Producers are encouraged to complete their AgriStability form now, so Agricorp can assess their claim sooner. .
Even if producers do not expect a payment, submitting a claim form keeps business information up to date and coverage current for when it is needed.
When do I apply?
The deadline for new applicants was April 30, but producers can still call Agricorp to inquire about the 2019 program year. Producers have until December 31, 2018 to pay their fee with a late penalty.
What can I do if I require a payment before the end of the year?
AgriStability is based on a producer's year-end tax filing, but a producer can
apply for an interim payment early if they are in financial distress. An interim payment is made in the second half of a producer's fiscal year and represents half of the producer's estimated final AgriStability payment. A final assessment on these payments is made at the end of the program year.
Where can I get more information about AgriStability?
For a news series on AgriStability, the
latest program information, and details on how to participate, producers can visit agricorp.com. Producers can also call Agricorp at 1-888-247-4999.