Posted: December 10, 2019
In this issue:
- Important AgriStability Deadline: 2018 Forms and 2019 Fees
- What if the December 31 deadline is missed?
- 2018 Program Year Participants:
- 2019 Program Year Participants:
- How AgriStability Can Help:
December 31, 2019, is the deadline for AgriStability participants to submit 2018 AgriStability Program forms and pay 2019 program fees (with penalties).
- Forms received after the initial September 30 deadline, and by December 31, are subject to a $500/month penalty deducted from the producer’s AgriStability benefit. After December 31, they are not eligible to receive benefits for the 2018 program year.
- Producers with outstanding 2019 program fees now have a 20 per cent penalty added as it is past the initial deadline for payment. If fees are not paid by December 31, the producer will not be eligible to participate in the 2019 program year.
If producers do not submit their 2018 program forms by December 31, 2019, they are not eligible to receive benefits for the 2018 program year. Completing AgriStability program forms each year helps build a farm’s financial profile. If a producer does not file annually, there are gaps in the information needed to build the reference margin and this will cause delays when processing future program forms.
Submitting program fees by the end of December is essential to participate in AgriStability for the 2019 program year. An Enrolment/Fee Notice was issued earlier in the year providing details about the fee amount and the deadline for payment. Producers with outstanding 2019 program fees now have a 20 per cent penalty added as it is past the initial deadline for payment. If the fee is not paid by December 31, including the penalty amount, the producer will not be eligible to participate in the 2019 AgriStability Program.
2018 Program Year Participants
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’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 using AgConnect or by fax, mail, email or dropped off in person at any SCIC customer service office.
Individuals in a partnership must each submit separate program applications reporting 100 per cent of the partnership’s income, expenses, accounts payable, accounts receivable, inventory, deferrals and purchased inputs. Each partner is to identify his or her percentage share of the partnership. SCIC will calculate each partner’s share of any benefit based on his or her percentage of the operation.
Partners can submit their forms through AgConnect, by mail/fax or in-person at any SCIC office.
AgriStability participants can choose to use the secure web-based application, AgConnect, to submit their program forms online. Information submitted through AgConnect enters SCIC’s system directly, allowing files to be processed quicker.
Using AgConnect will help you to:
- access your AgriStability information in one place – available online 24/7
- eliminate the paperwork and tracking multiple files
- easily file your forms online
- view important historical information about your account
- send supporting documents electronically
To begin using AgConnect, contact the SCIC AgriStability Call Centre at 1-866-270-8450.
Since AgriStability uses the same numbers provided to accountant or form preparer, a producer can enter those numbers online with AgConnect to streamline form submission. Plus, AgConnect stores data each year. If a producer filed online last year, their previous information is at their fingertips.
To be eligible for AgriStability program benefits, all participants must submit their farming income (or loss) information to the Canada Revenue Agency (CRA). This information is collected on the income tax return submitted to the CRA. To be eligible for 2018 program benefits, producers need to submit their 2018 farming income (or loss) information to the CRA by December 31, 2019.
2019 Program Year Participants:
Interim benefits provide an option to receive a portion of AgriStability benefits early, to help support losses and cover costs before completing the fiscal year. The 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 in order to access a payment. The interim benefit is then 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. To learn if you are eligible, please contact the AgriStability Call Centre at 1-866-270-8450.
SCIC is now accepting final AgriStability program forms for the 2019 Program Year. Farming and ranching operations with a non-calendar year end can complete and submit their final program forms at any time.
The end of the year is a great time to gather information used for the AgriStability Program. For an inventory check, record items such as the number of bales, livestock and grain on-hand. Fiscal year-end inventory numbers are a large part of the information needed for completing your AgriStability forms.
At year end, producers are in a better position to easily and accurately record this information. With these records on hand, it’s much easier to complete the program forms in the new year.
Your file and potential benefit payment can be processed quicker with these three steps:
- Record your inventory. Click here to download the Inventory Check worksheet.
- File your income tax.
- Submit your AgriStability forms, using your recorded inventory, as soon as your income tax is complete.
Individual producers (sole proprietors) or corporations operating with a calendar year end need to report inventories, payables, receivables, deferrals and purchased inputs as of December 31, 2019. By taking a few moments, in late December or early January to record this data, a producer can save time by not having to search for the information later in the year when it comes time to complete the program forms.
AgConnect is another option for producers to record and retain this information. Since AgriStability uses the same numbers you provide to your accountant or form preparer, you can enter those numbers online with AgConnect to streamline your form submission.
For producers new to AgriStability in 2019 or returning after being out of the program for a number of years, SCIC is conducting new participant meetings. The meetings are focused on helping new AgriStability participants learn about the Program by reviewing coverage details, factors which can trigger a benefit payment and information required to participate.
Meetings are being held at SCIC customer service offices across the province. New participants will be contacted and informed of the date and time of their local session. To learn more about these new participant meetings, please contact your local SCIC office.
How AgriStability Can Help:
AgriStability considers your entire operation for benefit eligibility, including all of your commodities. In agriculture, there are many factors beyond your control:
- Undesirable weather conditions
- Increased expenses
- Poor quality
- Drop in market prices
- Trade limitations
While these unknown factors may not trigger a payment on their own, AgriStability looks at them as a whole, with benefits based on the combined effects to the farm.
In the last four program years, AgriStability benefits of over $285 million were paid to Saskatchewan producers. These benefits were a result of uncontrollable factors that negatively impacted producers’ farms, such as price drops in the cattle market, dry conditions reducing yields, low market prices due to trade issues and a difficult harvest with crop left out over winter.
Losses due to crop quality are factored into each producer’s AgriStability coverage. Whether it is a loss due to reduced price for a lower graded crop, reduced value of inventory due to harvesting, a poor quality crop or spoilage of grain in storage, those factors are all included when calculating AgriStability benefits.
The AgriStability Program factors in expenses such as grain drying costs or the additional cost of harvesting the crop in the spring, into the benefit calculation. An increase in allowable expenses is another factor that influences the benefit calculation.
If you were in Crop Insurance last season, you can easily access last year’s acreage and crop production information for your farm. Simply give us a call at 1-866-270-8450 and ask for your AgriStability Preparation Report. With this in hand, you can finish your AgriStability Program forms quicker than ever before.
Has your main phone number changed? Do you have a new email address? Have you changed our contact person or form preparer? If you have made changes to your contact information, please let us know. We do not want any delays to occur when working on your AgriStability file. Simply contact the AgriStability Call Centre at 1-866-270-8450 and update your information.
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»