AgriStability: The AgriStability Fee
To participate in AgriStability, producers must pay a fee. Information on the fee will be included on the Enrolment Notice producers receive.
The fee is calculated based on 70% of your contribution reference margin being covered and is $4.50 for every $1,000 of reference margin protected. This reflects that AgriInvest will replace coverage for the top 30% of a producer's reference margin and AgriStability is in place to cover margin declines of more than 30%.
The contribution reference margin is used to calculate your fee and will be different from your reference margin used to calculate program payments. This difference occurs because information for the most recent reference year is not available at the time the fee is calculated.
The Administrative Cost Share (ACS) of $55 per account will be collected at the same time as the fee.
For a producer with a contribution reference margin of $60,000, the fee will be calculated as follows:
Step 1: Calculate 70% of contribution reference margin ($60,000 x 70% = $42,000)
Step 2: Calculate $4.50 for every $1,000 covered (42,000 x .0045 = $189.00)
When the $55 ACS is added, the producer will pay a total of $244.00.
If you do not pay your fee by the deadline date on your Enrolment Notice, a 20% penalty will be added. Then you will have until December 31 to pay your fee. The penalty applies only to the fee ($189.00 from the example above) and is not applicable to the ACS. You must pay your fee by December 31 or you will be ineligible to participate in AgriStability for that program year.
Important: If you receive an AgriStability Enrolment Notice and decide not to participate, you must inform the administration by the deadline date indicated on your Enrolment Notice. If you do not inform the administration, your fee and penalty will be considered outstanding and applied to future program years.
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