Allowable net sales and maximum contributions
The maximum amount that the government will match is based on your allowable net sales (ANS), as reported on your 2022 tax forms (T1163 or Statement A). This maximum is calculated by Agricorp and detailed on your personalized deposit notice that Agricorp mails to you.
Your ANS is the net total allowable sales of eligible commodities minus your total allowable eligible commodity purchases. Your maximum government contribution is a variable percentage of your ANS as follows.
If your ANS for the 2022 tax year is:
- $2.5 million or less, your maximum contribution equals 2% of your ANS.
- between $2.5 million and $5 million, your maximum contribution equals 2% of the first $2.5 million, and 1.5% of the balance of your ANS.
- greater than $5 million, your maximum contribution equals 2% of the first $2.5 million; 1.5% of the amount over $2,500,000 to $5 million; and 1% of the balance of your ANS.
Examples
|
Allowable Net Sales (ANS) |
Up to $2.5 million (x 2.0%) |
+ |
Between $2.5 million and $5 million (x 1.5%)
|
+ |
Over $5 million (x 1.0%) |
= |
Maximum government contribution |
|
Example 1
ANS = $50,000
|
$50,000 x 2%
= $1,000
|
+ |
— |
+ |
— |
= |
$1,000 |
|
Example 2
ANS = $4 million |
$2.5 million x 2%
= $50,000
|
+ |
$1.5 million x 1.5%
= $22,500
|
+ |
— |
= |
$72,500 |
|
Example 3
ANS = $6 million |
$2.5 million x 2%
= $50,000
|
+ |
$2.5 million x 1.5%
= $37,500
|
+ |
$1 million x 1%
= $10,000
|
= |
$97,500 |
If your ANS is adjusted after you make a deposit, it will only affect your maximum deposit if it changes by $75 or more. If your ANS increases by $75 or more, you will be eligible to make an additional deposit. If your ANS decreases by $75 or more, a portion of your government contribution will be considered an overpayment and will be held back when you withdraw your funds. Your maximum deposit will not be recalculated after the deposit deadline.
