Drought Watch
Federal Programs
AgriInsurance, AgriStability, AgriInvest, the Advance Payments Program (APP, and the Tax Deferral Program are in place to provide farmers with assistance this year.AgriInsurance
AgriInsurance is affordable, predictable and timely. The program includes existing production insurance, and provides coverage for production and asset losses caused by natural perils. Coverage is expanding to include other products such as livestock and additional horticultural crops. Under the program, producers pay premiums to protect their commodities. Producers get a payment when they experience a production loss during the year.
For more information, producers should contact their provincial AgriInsurance agency:
- British Columbia
- Alberta
- Saskatchewan
- Manitoba
- Ontario
- Quebec
- New Brunswick
- Nova Scotia
- Prince Edward Island
- Newfoundland and Labrador
AgriStability
AgriStability is a margin-based program that provides support when a farmer experiences larger farm income losses. AgriStability covers declines of more than 15% in a farmer’s average income from previous years. Because AgriStability is margin based, it is targeted to the individual producer, and provides equitable, whole-farm support for all commodities.
AgriStability is delivered in British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador and Yukon by the federal government.
If you are in Alberta, Ontario, Quebec, or Prince Edward Island, AgriStability is delivered provincially.
AgriInvest
AgriInvest accounts provide coverage for small margin declines. AgriInvest is simple, responsive, predictable and bankable. With AgriInvest accounts, producers make a deposit based on a percentage of their Allowable Net Sales and receive a matching government contribution.
AgriInvest is delivered by the federal government in all provinces except Quebec.
In Quebec, AgriInvest is delivered by La Financière agricole.
Advance Payments Program (APP):
The Advance Payments Program (APP) is a financial loan guarantee program that gives producers easier access to credit through cash advances. APP is a complementary program to the Business Risk Management Suite of programs. It helps crop and livestock producers with cash flow and provides flexibility for marketing of commodities.
Tax Deferral Program: (Prescribed Drought – Excess Moisture and Flood Region)
Under this program, owners of breeding livestock in designated areas who are forced to sell all or part of their breeding herd due to drought or excess moisture and flood conditions, are eligible for a one-year tax deferral on part of the income from those sales.
The deferral allows eligible producers to defer income tax on the sale of breeding livestock for one year to replenish breeding stock in the following year. In the case of consecutive years of drought or excess moisture and flood designation, producers may defer sales income to the first year in which the area is no longer designated. Eligible producers will be able to request this deferral when filing their income tax returns.