Production Insurance and
AgriStability are complementary programs that address different risks faced by Ontario producers.
While Production Insurance protects Ontario producers from yield reductions and crop losses caused by factors beyond their control, AgriStability protects whole farms against large margin declines caused by any combination of production losses, adverse market conditions, or increased costs.
When you participate in both AgriStability and Production Insurance, you maximize the benefits of the government risk management programs available to you. For example:
AgriInvest is a savings account with matching government contributions. You can withdraw the funds at any time for risk mitigation or investments. In Ontario, AgriInvest is delivered by Agriculture and Agri-Food Canada (AAFC).
Your Production Insurance claims are included when AAFC calculates your allowable net sales (ANS), which is used to determine your maximum matchable deposit under AgriInvest. This protects your ANS in the years that you have a Production Insurance claim.
Production Insurance and the
Risk Management Program (RMP) work together to create an effective risk management program for Ontario producers. Each program addresses different risks:
RMP helps producers manage risks beyond their control, like fluctuating costs and market prices. The program is available for the cattle, edible horticulture, grain and oilseed, hog, sheep and veal sectors.
Starting in 2012, participation in Production Insurance is an eligibility requirement for RMP: Grains and Oilseeds.
The Advance Payments Program, delivered by the Agricultural Credit Corporation (ACC), is a federal program that provides low-interest cash advances to farmers.
Advances up to $1 million are available, with the first $250,000 being interest free and the remainder (up to $750,000) at the prime interest rate. The loan can be paid off as the current crop is sold or within 18 months after the program start date of November or April (depending on the commodity).
Crop farmers must participate in AgriStability or Production Insurance or have the inventory on hand to qualify for the program.
For more information about the Advance Payments Program, visit the ACC website or call 1-888-278-8807 to apply.