# Help Guide - AgriStability Benefit Quick Estimator

## Completing the Quick Estimator

### Reference Margin

Follow these steps to determine your reference margin:

Step 1: Calculate a production margin for each of your previous years (up to five) as follows:

A: Subtract your **Allowable Expenses** from your **Allowable Income ^{Footnote1}**

B: If you file to the Canada Revenue Agency (CRA) on the cash basis, you must add the following **change in value**^{Footnote2} calculations to amount you calculated in step 1:

- Change in crop inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price).
- Change in livestock inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price). If you have breeding herd, your change in your breeding herd inventory is calculated differently from your market livestock. Change in breeding herd inventory = (ending inventory minus starting inventory) multiplied by end of year price.
- Change in purchased inputs = end of year amount minus start of year amount.
- Change in deferred income and receivables = ending receivables and deferred income minus starting receivables and deferred income.
- Change in accounts payable = starting accounts payable minus ending accounts payable.

The above calculations can result in either a positive or negative value.

**Production margin calculation example:**

Step 2: Calculate an average of your production margins as follows:

- If you farmed in each of the previous five years, remove the highest and the lowest years, then average the remaining three years.
- If you did not farm in each of the previous 5 years, average the previous 3 years.
- If you did not farm in each of the previous 3 years, average the years you have available.

The average you calculate is your reference margin.

2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|

$25,000 | $30,000 | $20,000 | $36,000 | $35,000 |

include | include | exclude lowest | exclude highest | include |

Reference margin | $25,000 + $30,000 + $35,000 = $90,000 ÷ 3 = $30,000 |

### Average allowable expenses

Using the same years you used to estimate your reference margin, calculate your average allowable expenses for these years.

2013 | 2014 | 2015 | 2016 | 2017 | |
---|---|---|---|---|---|

Reference Margin | $25,000 | $30,000 | $20,000 | $36,000 | $35,000 |

Allowable Expenses | $45,000 | $20,000 | $25,000 | $40,000 | $50,000 |

Exclude the years with the highest and lowest reference margins excluded | include | include | exclude | exclude | include |

Average allowable expenses | $45,000 + $20,000 + $50,000 = $115,000 ÷ 3 = $38,333.33 |

### Program Year Margin

Follow these steps to calculate your program year margin:

Step 1: Subtract your **Allowable Expenses from your Allowable Income**^{Footnote1}

Step 2: If you file to the Canada Revenue Agency (CRA) on the cash basis, you must add the following **change in value**^{Footnote2} calculations to the amount you calculated in step 1:

- Change in crop inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price).
- Change in livestock inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price). If you have breeding herd, your change in your breeding herd inventory is calculated differently from your market livestock. Change in breeding herd inventory = (ending inventory minus starting inventory) multiplied by end of year price.
- Change in purchased inputs = end of year amount minus start of year amount.
- Change in deferred income and receivables = ending receivables and deferred income minus starting receivables and deferred income.
- Change in accounts payable = starting accounts payable minus ending accounts payable.

The above calculations can result in either a positive or negative value.

**Program year calculation example:**

and deferred income

### Partnership percentage

Enter your partnership percentage using one of the following methods:

- Your percentage share of your partnership, if you entered your reference margin, average allowable expenses and program year margin based on 100% of your partnership.
- Your partnership percentage as 100%, if you entered your reference margin, average allowable expenses and program year margin based on your share of the partnership.

For example: You are in a 50/50 partnership with your spouse. The partnership has the following:

If you entered $150,000 for your reference margin, $100,000 for your average allowable expenses and $60,000 for your program year margin, enter 50% in the partnership percentage box.

If you entered only your 50% share for your reference margin, average allowable expenses and program year margin, enter 100% in the partnership percentage box.

If you are using a Calculation of Benefits (COB) to complete the calculator the calculations on the COB were done using your partnership percentage. Therefore, enter 100% in the partnership percentage box.

### Whole Farm percentage

Enter your **whole farm**^{Footnote3} percentage using one of the following methods:

- Your percentage share of the whole farm, if you entered your reference margin, average allowable expenses and program year margin based on 100% of the whole farm.
- Your whole farm percentage as 100%, if you entered your reference margin, average allowable expenses and program year margin based on your share of the whole farm.

For example: You farm represents 50% of the whole farm. The whole farm has the following:

If you entered $150,000 for your reference margin, $100,000 for your average allowable expenses and $60,000 for your program year margin, enter 50% in the whole farm percentage box.

If you entered only your 50% share for your reference margin, average allowable expenses and program year margin, enter 100% in the whole farm percentage box.

### Change in farm size

Indicate if your farm size has:

- Not changed by more than 10% since last year
- Increased by more than 10% since last year
- Decreased by more than 10% from last year

### Percent change in farm size

Enter the percent change your farm size has increased or decreased. Percentage values entered in this field must be more than 10%.

## Understanding the results calculations

### Estimated Benefit

This is your estimated benefit. Payments are not issued for less than $250 or more than $3 million.

**Benefit calculation example:**

### Reference Margin with adjustments

This is your reference margin after it has been adjusted for structural change, partnership share and/or whole farm share.

### Reference Margin Limit

This is your average allowable expenses after they have been adjusted for structural change, partnership share and/or whole farm share.

Your reference margin cannot exceed the average allowable expenses. If it does, the lower amount will be used to calculate your benefit. This is called the reference margin limit.

### Adjusted Reference Margin Limit

The reference margin limit cannot reduce your reference margin by more than 30%. If it does, it is adjusted. This is called the adjusted reference margin limit. For example:

### Applied Reference Margin

Your applied reference margin is:

- Your reference margin with adjustments or your reference margin limit, whichever is lower.
Example A

Reference Margin with adjustments$80,000Reference Margin Limit$40,000Lower of Reference Margin with adjustments or Reference Margin Limit$40,000 - If you reference margin limit is lower than your reference margin with adjustments, then the greater of your reference margin limit or your adjusted reference margin limit is applied.
Example B

Reference Margin Limit$40,000Adjusted Reference Margin Limit$56,000Higher of Reference Margin Limit or Adjusted Reference Margin Limit$56,000Applied Reference Margin =$56,000

### Support Level

Your support level is 70% of your applied reference margin. Your program year margin must fall below your support Level to trigger a benefit.

For example:

### Program Year Margin with adjustments

- This is your program year margin after it has been adjusted for your partnership share and/or whole farm share.

## Report a problem on this page

- Date modified: