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Whole Farm Protection with AgriStability

Each growing season brings a unique set of challenges for producers. These often raise concerns around farm production and profitability. Will there be enough moisture to grow a crop? What is going to happen with markets? Is there going to be enough feed until spring? Until the crop is shipped or livestock are sold, with cheque in hand, there are no guarantees. While these unforeseen factors may not trigger a payment on their own, AgriStability takes the whole farm into account. Benefits are paid based on the combined outcomes of such events.

Removal of the Reference Margin Limit

The Reference Margin Limit (RML) is removed from the AgriStability Program retroactive for the 2020 program year. With removal of the RML, the conventional margin will be used when processing all 2020-2023 applications.

The removal of the 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.

What is AgriStability and how does it work?

AgriStability is a national program under the Canadian Agricultural Partnership, a five-year agreement between federal and provincial governments on agriculture policy. Since 2010, Saskatchewan Crop Insurance Corporation (SCIC) has administered the AgriStability Program within the province.

AgriStability is a margin-based program providing personalized coverage for each farm by using historical information, based on income tax and supplementary information. A program year margin and a reference margin are calculated for each farming operation. If a producer's program year margin falls 30 per cent below the reference margin, due to any combination of production loss, adverse market condition or increased costs, AgriStability could provide a payment. The payment provides 70 cents for every dollar of decline below the trigger point.

AgriStability has changed through the years

The AgriStability Program continues to evolve to meet the needs of Canada's producers. Beginning in the 2020 program year, revenue producers gain from private insurance payments, such as hail insurance, or Livestock Price Insurance will be excluded from the program year calculation. This change allows producers to access this coverage without reducing potential AgriStability benefits.

In the last five program years, benefits of over $400 million dollars were paid to Saskatchewan producers. These benefits resulted from uncontrollable factors that negatively impacted producers' farms, such as price drops in the cattle market, dry conditions reducing yields and a difficult harvest with crop left out over winter.

Agristability -graph

What is the Enrolment/Fee Notice?

Once enrolled in the AgriStability Program, producers receive an Enrolment/Fee Notice. All participants are given 30 days from the date on their Enrolment/Fee Notice or until the extended deadline of June 30, 2021, whichever is later, to pay these fees. If the annual program fee is paid after the initial enrolment deadline, a 20 per cent penalty fee will be added. This additional cost is explained on the Enrolment/Fee Notice and can be paid any time until the final deadline of December 31, 2021. Producers who fail to pay the enrolment fee by December 31, 2021 will be ineligible to receive benefits for the 2021 program year. For more information on how to enrol please visit SCIC/How to Apply.

Contact SCIC to enrol today!

For the last 60 years, SCIC has been here for Saskatchewan producers. SCIC understands the efforts required to build and maintain a farming operation. Producers are passionate, committing endless hours of hard work in support of the agriculture industry. While producers understand the risks, sometimes the unexpected happens and that's where AgriStability can offer support.

The enrolment deadline for the 2021 AgriStability Program is June 30, 2021. Simply call the SCIC AgriStability Call Centre (1-866-270-8450) and request a new participant package. The annual fee is $315 for every $100,000 of reference margin. All participants are given 30 days from the date on their Enrolment/Fee Notice or until extended deadline of June 30, whichever is later, to pay these fees without penalty.

Once enrolled, producers have financial protection for their whole farm – not just one commodity. This allows producers to focus on their day-to-day business knowing that AgriStability is there to help if needed.

For questions or to enrol in AgriStability, producers can call the AgriStability Call Centre at 1‑866‑270‑8450, contact a local SCIC office or visit SCIC/Agristability.

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