Agri Stability Agri Stability Overview Agri Stability is
Agri. Stability
Agri. Stability Overview • Agri. Stability is a margin-based income stabilization program • Provides assistance for margin declines that are greater than a defined percentage of a participant’s reference margin. • Producers will receive an Agri. Stability payment when their income in the program year drops more than 30% below their historical reference margin
Margin – Based Coverage • Agri. Stability provides income protection based on annual production margins Allowable Income • Allowable Expenses Production Negative Margin The current production margin (Program Year Margin) is compared to an average historical production margin (the Reference Margin) to determine if an income decline has taken place and, if so, the amount of the decline
Agri. Stability Application Process Fee Payment Submit Forms Enrolment DONE!
Agri. Stability Eligibility Requirements • Producer has reported farm income (or loss) to the Canada Revenue Agency unless exempt under the federal Indian Act • Has completed a minimum of six consecutive months of farming activity • Has completed a production cycle on at least 1 of their commodities
April 30, 2020
Questions
Agri. Stability Interim Applications • The Interim advance payments will supply much needed cash flow moths ahead of final payments which can only be calculated after taxes are filed. • The Agri. Stability Interim application is an optional Agri. Stability program feature that allows you to apply for 2019 program year assistance before the final 2019 application is available, and receive a portion of your estimated final payment early.
Agri. Stability Interim Applications 50% 75%
Mr. Farmer
7118 Trees & Shrubs 5, 000 4, 500, 000
Benefit Calculation 2015 2016 2017 2018 2019 2020 Total Eligible Income 7, 000 8, 000 10, 000 8, 000 9, 000 4, 000 Total Eligible Expenses 5, 000, 000 8, 000, 000 7, 000 5, 000 Unadjusted Production Margin 2, 000 3, 000 2, 000 1, 000 2, 000 - 1, 000 700, 000 1, 000 500, 000 800, 000 - 500, 000 2, 700, 000 4, 000 2, 500, 000 1, 500, 000 2, 800, 000 - 1, 500, 000 Yes No Yes Accrual Adjustments Total Production Margin With Accrual Adjustments Figures Used in Calculation Program Year Margin = - $1, 500, 000 Reference Margin = $2, 666, 667 Potential Payment = $2, 693, 333 Interim Benefit at 75% = $2, 020, 000 X 70% Trigger Level= $1, 866, 667 Subtract Program Margin = - $1, 500, 000 80% Compensation= $3, 366, 667 x 80%
Contact Us Toll Free: 1 -(877)-343 -2767 Fax: 1 -(877)-605 -8467 Email: Agri. Stability@gov. bc. ca Call our Toll Free Line for One-on-One consultations
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