As we approach the end of April and the deadline for AgriStability applications, let's review some of the changes to the suite of business risk management programs, effective with the 2018 program year.
AgriStability
The Reference Margin Limit (RML) has changed. Producers will be guaranteed at least 70% of their Reference Margin, which is intended to ensure producers from all sectors have a more equitable level of support.
Previously, AgriStability benefits were calculated using the lower of:
- conventional reference margin; or
- average allowable expenses in the years used to calculate conventional reference margin (also called RML).
When the RML was implemented in 2013, it reduced coverage to producers and sectors with lower cost structures.
A late participation mechanism has also been added that may allow producers to enroll late under certain conditions. This new provision can only be triggered when both the federal and provincial governments agree to extend the deadline for participation in response to a significant agriculture disaster. It is not based on an individual's decision. Producers that are eligible for late participation will receive reduced benefits (20% lower).
To fund the AgriStability changes above, reductions were made to AgriInvest.
AgriInvest
Beginning in the 2018 program year, the maximum Allowable Net Sales (ANS) eligible under AgriInvest will be reduced to $1 million, down from $1.5 million. This means the annual government matching contribution will be limited to $10,000 per AgriInvest account, down from $15,000. The minimum payment is now $250.
BRM Review
Beyond these changes, the government has committed to
review the suite of BRM programs with a specific focus on AgriStability. Canadian Canola Growers Association is actively participating in this review to:
- get government to recognize the current programs do not meet the farmers' needs and expectations, and
- advocate for identifying options to transform the existing programs.
Read more on Agriculture and Agri-Food Canada's website: Canadian Agricultural Partnership – Business Risk Management Programs (effective April 2018)