March 16, 2022 | Updated: May 30, 2022
Each year, farmers face risks, such as production losses, losses associated with animal health or disease, market uncertainties and rising input costs. This is where
AgriStability can help.
AgriStability is available for all farms, including those with supply-managed commodities. It offers affordable and dependable risk management coverage, and it has recently been improved to be more responsive to farmers' needs. It protects the income of the whole farm, helping to offset losses if there is a large decline in the farm's income (production margin).
AgriStability provides a reference margin that is calculated using the historical average of a farm's net farming income. If the farm's production margin in a year is less than 70% of their reference margin, a payment is triggered. (Learn more at the AgriStability – How it works page.)
Farmers have until
June 30* to sign up for AgriStability by submitting a
New Participant Form.
Enhancements to AgriStability
Two key enhancements to AgriStability were made last year to improve support for farmers. Both updates are effective as of the 2020 program year.
Ontario compensation rate increased – The provincial portion of the compensation rate for AgriStability has been increased from 70% to 80%. This is being paid as a top‑up, which will be paid separately from any initial AgriStability payments.
Coverage increased for farmers with removal of reference margin limit – With the removal of the reference margin limit, which was based on a farm's average expenses, the reference margin is once again based on a customer's recent average net income, potentially leading to a higher reference margin. This means less of a margin decline is needed for a payment to be triggered.
For more information about how these enhancements have improved coverage, read
Ontario increases provincial support under AgriStability.
To understand how these updates affect various types of operations, see the following examples.
Example 1: Corn and ginseng operation
A-A-A Farm has 100 acres of corn and 10 acres of ginseng.
with reference margin limit:$834,167Reference margin
without reference margin limit:$1,191,667
2022 was a challenging year because of crop loss due to weather conditions, as well as increased costs. As a result, the farm's 2022 production margin was $350,000.
Example 2: Beef operation
BBB Farm has 150 head of cattle and 1,000 acres of hay for sale and feed.
with reference margin limit:$477,333Reference margin
without reference margin limit:$534,000
Increased costs for raising cattle led to a loss of income for the farm. As a result, the farm's 2022 production margin was $260,000.
Example 3: Grape operation
CCC Farm has 50 acres of grapes.
with reference margin limit:$141,633Reference margin
without reference margin limit:$202,333
2022 was a challenging year for the farm because of lower-quality grapes due to weather conditions and increased costs related to replanting damaged vines. As a result, the farm's 2022 production margin was $40,000.
*The deadline to secure AgriStability coverage for 2022 is extended to June 30, 2022.