Updated: July 12, 2021
In this issue:
- Don't wait to file your AgriStability Program Forms
- Deadline to File AgriStability Program Forms
- Why Submit?
- How to Submit?
- Using AgConnect
- What if the September 30 Deadline is Missed?
- Partnerships: All Parties Must Submit Their Information
- Filing your Farming Income (or Loss)
- Requesting Your AgriStability Preparation Report
- Interim Benefits
- New to AgriStability?
- Reporting Crop Share
- New for the 2020 AgriStability Program
- New Codes for the 2020 AgriStability Program
While there never seems to be an ideal time for paperwork, completing your AgriStability information and submitting early can have a positive impact. We understand as summer goes by and we shift into fall, it gets busier on farms and ranches. To reduce the workload this fall, we encourage you to submit your AgriStability program forms well in advance of the September 30 deadline. By taking this step, your file is processed quicker and if you are in a benefit position, your payment is issued faster. There is no need to wait, submit program information anytime.
The deadline to submit 2020 AgriStability program forms without penalty is September 30, 2021.
Submitting program forms is part of the annual process for producers enrolled in AgriStability. The information provided determines if you qualify for a payment. It also ensures the farm’s reference margin, which payments are based upon, is up to date.
Completing your AgriStability program forms each year helps build a financial profile. This financial profile provides you with more accurate coverage in the future. If you do not file annually, there are gaps in the information needed to build the reference margin. This will cause delays when processing future program forms.
Individual producers (sole proprietors) must submit their income and expense (tax) information, provided on the T1163 form, to the Canada Revenue Agency (CRA). CRA then shares this information with SCIC. An individual producer’s supplemental information (inventories, receivables/deferrals, payables, and purchased inputs) are submitted directly to SCIC. Corporations and co-operatives submit all AgriStability program forms directly to SCIC.
Program forms can be submitted by fax, mail or email, or dropped off in person at any SCIC customer service office. You can also choose to use our web-based application, AgConnect, to easily enter your program information online and streamline your form submission.
You can easily enter your program information online through our web-based application AgConnect. Information submitted through AgConnect enters SCIC’s system directly, allowing files to be processed quicker.
Using AgConnect will help you:
- access your AgriStability information in one place - the platform is available online 24/7
- eliminate paperwork and the need to track multiple files
- easily file your forms online
- view important historical information about your account
- send supporting documents electronically
To begin using AgConnect, contact the AgriStability Call Centre at 1-866-270-8450. Our knowledgeable AgriStability staff can assist with setting you up on the application. Click here to learn more about AgConnect.
Any 2020 program forms received after September 30, 2021, may be subject to a penalty fee. AgriStability benefits will be reduced by $500 per month; however, if the file is processed and no benefit is calculated, no penalty is applied. To remain enrolled in the Program, forms must be submitted by December 31, 2021.
SCIC cannot process a file until all partners in the operation have submitted their program forms. Each individual or entity in a partnership must submit separate program forms reporting 100 per cent of the partnership’s income, expenses, accounts payable, accounts receivable, inventory, deferrals and purchased inputs. Each partner must also identify their percentage share of the partnership. SCIC calculates each partner’s share of any benefit based on the percentage share of the operation.
To be eligible for AgriStability program benefits, you must submit your 2020 farming income (or loss) information to the Canada Revenue Agency (CRA). This information is collected on the income tax return submitted to the CRA.
If you were in Crop Insurance last season, you can easily access last year’s acreage and crop production information for your farm. Simply contact the AgriStability Call Centre at 1-866-270-8450 and ask for an AgriStability Preparation Report. This report can assist you with completing your 2020 AgriStability program forms.
Prior to completing your fiscal year, you may be eligible to receive a portion of your AgriStability benefit payment early. An interim benefit is based on the estimated margin decline or loss for the year compared to the farm’s reference margin. The decline must be at least 30 per cent below the reference margin to access a payment. Interim benefits are issued at 50 per cent of the estimated final benefit.
Producers receiving an interim benefit payment must be enrolled and submit all final program forms by the required deadlines. Contact the AgriStability Call Centre at 1-866-270-8450 to learn more.
If you are new to AgriStability or are returning after being out of the Program for four or more years, you can take advantage of the simplified participation process to create your reference margin. New participants have the option of using three years of historical information (2019, 2018, and 2017), rather than the traditional five years, to build their farm’s reference margin. The information required includes income, expenses, inventories, accounts payable, receivables/deferrals and purchased inputs. This information is required before program year benefits can be calculated.
Packages requesting the required historical information have been delivered to those who are new to the Program. If you have questions while completing your historical information, please contact the AgriStability Call Centre at 1-866-270-8450 or visit your local SCIC office.
When reporting crop share arrangements, the tenant should be reporting their percentage share of the income and expense based on the crop share arrangement. This ensures the appropriate amount of the crop share arrangement is allocated as allowable income and expense for AgriStability.
For example: If the crop share arrangement is 60 per cent production for the tenant and 40 per cent production for the landlord, then the tenant would report 60 per cent of the income and 60 per cent of the expense.
Private Insurance Payments
Starting in the 2020 program year, private insurance payments will be treated as non-allowable income in the calculation of the Program Year Margin. This means payments you receive from private insurance programs will no longer reduce the potential benefit you could be eligible to receive from the AgriStability Program.
This change applies to private insurance payments from programs where the premiums are fully producer-funded and compensate for losses related to price, revenue, productions or margins. This includes, but is not limited to, programs like Global Ag Risk Solutions, Just Solutions or Livestock Price Insurance. Payments from these programs will remain allowable in the reference years to ensure your support level does not decrease.
Removal of the Reference Margin Limit
The Reference Margin Limit (RML) is removed from the AgriStability Program, retroactive to the 2020 program year. With removal of the RML, the conventional margin will be used when processing all 2020-2022 applications.
The removal of the Reference Margin Limit (RML) ensures the coverage level for all farming operations is calculated equitably. Farming operations with low amounts of allowable expenses will no longer be subject to the RML rules.
This change will increase program coverage levels for those that previously had the RML applied to their benefit calculations. This program enhancement could increase benefits for producers previously subjected to the RML. The removal will also simplify the calculation for producers when determining a benefit situation.
|AgriInsurance (production/crop insurance)-Edible horticulture crops||402|
|AgriInsurance (production/crop insurance)-Grains, oilseeds, and special crops||401|
|AgriInsurance (production/crop insurance)-Non-edible horticulture crops||470|
|AgriInsurance (production/crop insurance)-Other commodities, including livestock||463|
|Private hail insurance||407|
|Private insurance proceeds for the replacement of allowable commodities||681|
|Private insurance proceeds for the replacement of allowable expense items||406|
|Private insurance proceeds for allowable commodities (production/price/margin insurance)||661|
|Western Livestock Price Insurance Program (WLPIP)||667|
Code 407: This new code will cover the hail insurance moved from the AgriInsurance codes. It has the same treatment as code 661. For AgriStability, it will be non-allowable in the program year, but allowable in the reference years. It will remain allowable for AgriInvest.
Code 661: Covers all indemnity payments outlined under 4.3.2 of the AgriStability guidelines. Amounts are non-allowable for AgriStability in the program year, but allowable in the reference years. Amounts also remain allowable for AgriInvest.
Code 681: This new code will cover income from insurance for eligible agricultural commodities and be allowable for both AgriStability and AgriInvest. An example would be payments received for grain destroyed in a bin fire.
Code 406: Covers off the allowable expense items which would be allowable for AgriStability, but non-allowable for AgriInvest.
Code 667: This code has changed. WLPIP income will be non-allowable for AgriStability in the program year, but allowable in the reference years. It will remain allowable for AgriInvest.
We're Here For You
AgriStability Program experts are available across the province to help producers, accountants or form preparers.
Contact a Program Advisor or the AgriStability Call Centre at 1-866-270-8450 or by email to: firstname.lastname@example.org.Click here to access our Customer Service Office listings»