2022 AgriStability Enrolment - Industry Advisory

AgriStability Enrolment Deadline

The deadline to enrol in AgriStability for the 2022 program year is April 30, 2022.

Removal of the Reference Margin Limit

In 2021, the Reference Margin Limit was removed from the AgriStability Program retroactive for the 2020 program year. The removal of the Reference Margin Limit ensures the coverage level for all farming operations are calculated equitably. Farming operations with low amounts of allowable expenses will no longer be subject to the Reference Margin Limit rules.

This program enhancement is increasing coverage levels and benefits for producers previously subjected to the Reference Margin Limit. In the 2020 program year, removal of the Reference Margin Limit has added millions in additional benefits for Saskatchewan producers. The removal also simplifies the calculation for producers when determining benefit eligibility.

Watch Saskatchewan's Agriculture Minister David Marit explain the significance of the removal of the Reference Margin Limit.

Treatment of Private Insurance Under AgriStability

Revenue from private insurance payments, such as hail insurance, Global Ag Risk Solutions, Just Solutions or Livestock Price Insurance, is excluded from the AgriStability program year calculation. This change allows producers to access additional risk management programming, without private insurance indemnities impacting their AgriStability benefit calculation.

Whole-Farm Protection with AgriStability

In the agriculture industry, there are no guarantees. While producers cannot control the weather, market fluctuations or rising input costs, they can manage their risk with AgriStability. The AgriStability Program offers protection based on a producer’s operation history.

Consider these situations:

• Undesirable weather conditions
• Increased expenses (e.g., increased input costs, including fuel and fertilizer)
• Poor quality crops (e.g., poor quality or low quantity yields due to drought, insect pressures, lower grade crops)
• Trade and market disruptions

Payments can result from a combination of factors that on their own may not result in a payment.

AgriStability Helps Saskatchewan Producers

In the last five program years, Saskatchewan producers received AgriStability benefits of over $425 million dollars. These benefits were a result of uncontrollable factors negatively impacting producers’ farms. Some of the more prominent challenges the Program is responding to includes reduced crop production due to drought, declines in crop prices, quality and yield loss on crops due to poor harvest conditions and declines in the hog and cattle markets.

How Does AgriStability Work?

AgriStability is designed to help farm operations facing large margin declines caused by production loss, increased costs or market conditions. This margin-based program is unique because it provides personalized coverage for each farm by using historical information, based on income tax and supplementary information. AgriStability calculates a program year margin and a reference margin for each farming operation. If a producer’s program year margin falls more than 30 per cent below their reference margin, due to any combination of production loss, adverse market conditions or increased costs, AgriStability could provide a payment. The payment provides 70 cents for every dollar of decline below the benefit trigger point.

Who Can Participate in AgriStability?

To be eligible to participate in the AgriStability Program, a producer must earn income from the primary production of agricultural commodities. In the program year they must have:

• Carried on the business of farming in Canada and reported farming income (or loss) for income tax purposes,
• Completed a minimum of six consecutive months of farming activity,
• Completed a production cycle,
• Paid their program fees, and
• Submitted the required information by the deadlines.

Is AgriStability an Affordable Program?

AgriStability is a low-cost, business risk management program. In Saskatchewan, the average cost to participate in the AgriStability Program is $0.67 per acre or $1.16 per head. All participants are given 30 days from the date on their Enrolment/Fee Notice or until April 30, whichever is later, to pay these fees without penalty.

How to Enrol in the AgriStability Program

Applying for AgriStability is easy. Simply request a call-back. Producers are also encouraged to contact their local SCIC customer service office or call the AgriStability Call Centre and request a new participant package.

New producers in the AgriStability Program will be asked a few simple questions over the phone, with no initial requirement to supply historical farm information. Once enrolled, new participants will have the option of submitting either their previous three years or five years of historical information for processing their final application.

Producers wishing to participate for the 2022 program year must request to enrol by the deadline of April 30, 2022.

What is the Enrolment/Fee Notice?

Once enrolled in the AgriStability Program, SCIC will mail you an Enrolment/Fee Notice. This notice provides a breakdown of the program fees and details of participating in the AgriStability Program.

All participants are given 30 days from the date on their Enrolment/Fee Notice or until April 30, 2022, whichever is later, to pay these fees. If the annual program fee is paid after the initial deadline, a 20 per cent penalty fee will be added. To be eligible for the 2022 program year, fees must be paid no later than December 31, 2022.

Changing Business Structure

The last day to enrol in AgriStability is April 30, 2022. This is an important date for AgriStability participants who have experienced changes within the business structure of their farm during the 2021 fiscal year. Participants must contact SCIC by April 30 if they have:

• Changed their farm from a sole proprietorship to a corporation,
• Changed their farm from a corporation to a sole proprietorship, or
• Have transitioned their farm to a partnership.

Program fees and benefit calculations can change when farm business structures change. To avoid processing delays, please ensure SCIC has the most current information of your business structure. Please complete both forms when changing from a sole proprietorship to a corporation, or vice versa:

Keeping Information Up-to-Date

AgriStability participants are reminded to keep their contact information up-to-date. If your farm’s phone number, email address or mailing address has changed, please contact the AgriStability Call Centre with the correct information.

Up-to-date contact information ensures SCIC can connect with you when necessary, reducing the chance of delays in benefit processing or missing a deadline. The correct information for your contact person (e.g., accountant or form preparer) is also important. If this has changed, please complete the Change Contact Person form and submit it to SCIC.

Withdrawing from AgriStability

The Enrolment/Fee Notice provides producers with the opportunity to withdraw participation from the AgriStability Program. Producers must indicate their intention to withdraw by April 30, 2022. After this deadline, participants will be automatically enrolled for 2022 and required to pay their program fees. Producers who opt-out for the 2022 year will need to contact the AgriStability Call Centre before April 30 of the following program year to rejoin the Program.

2021 Program Year Files are Being Processed

Participants in AgriStability for the 2021 program year do not need to wait until the September 30 deadline to submit their program forms. Once producers have finalized their income and expense (taxes) information for 2021, they can complete their AgriStability supplemental information (inventory, purchased inputs, deferrals, accounts payable and accounts receivable) and submit it to SCIC.

SCIC processes files in the order they are received. Submitting 2021 program forms well in advance of the deadline will help files be processed sooner.

Program forms for all SCIC programs are available online, including document examples and instructions to help you complete each form. All forms are listed in alphabetical order by name of the form.

2022 Interim Benefits

Interim benefits provide an option to potentially 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 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. Contact the AgriStability Call Centre to learn more.

360° Coverage - Find The Right Insurance For Your Operation

As a Saskatchewan producer, you want more than just insurance for your operation. You want complete coverage against risks impacting your bottom line. This kind of year-round, all-around coverage you can only get from SCIC. With the 2022 growing season fast approaching, now is the time to review your farm insurance coverage and consider available options for managing farm risk.

SCIC offers a suite of business risk management programs. Each program offers different insurance features to protect Saskatchewan producers against varying types of risks occurring through the year. Crop Insurance provides coverage for their crops from the start of seeding until harvest is complete. Through AgriStability, producers have coverage for other uncontrollable events throughout the year. Livestock Price Insurance protects producers from unexpected price drops in the cattle or hog market. When combined, Crop Insurance, AgriStability and Livestock Price Insurance offer extensive protection for Saskatchewan’s operations. Producers do not have to choose one program over another. Crop Insurance, AgriStability and Livestock Price Insurance complement each other to protect from crop production losses, marginal declines in farming income and market price declines. SCIC encourages producers to consider the benefits of multiple programs to maximize their coverage.

• The deadline for producers to apply for, reinstate, cancel or make changes to Crop Insurance contracts is extended to April 14, 2022.
• Producers can purchase LPI policies every Tuesday, Wednesday and Thursday from 2:00 p.m. to 11:00 p.m. MT. Claims can be made on Mondays between 2:00 p.m. and 11:00 p.m. MT.