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Help Guide - AgriStability Benefit Quick Estimator

Back to the 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 IncomeFootnote1

B: If you file to the Canada Revenue Agency (CRA) on the cash basis, you must add the following change in valueFootnote2 calculations to amount you calculated in step 1:

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

Production margin calculation example:

Allowable Income
$130,000
− Allowable Expenses
$90,000
= Net Income
$40,000
+ Change in purchased inputs
$1,000
+ Change in accounts receivable and deferred income
($6,000)
+ Change in accounts payable
$4,500
+ Change in crop inventory
($1,000)
+ Change in livestock inventory
($3,500)
= Production Margin
$35,000

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

The average you calculate is your reference margin.

Reference margin calculation example:
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.

Average allowable expenses example:
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 IncomeFootnote1

Step 2: If you file to the Canada Revenue Agency (CRA) on the cash basis, you must add the following change in valueFootnote2 calculations to the amount you calculated in step 1:

Program year calculation example:

Allowable Income
$90,000
− Allowable Expenses
$60,000
= Net Income
$30,000
+ Change in purchased inputs
$500
+ Change in accounts receivable
($1,000)

and deferred income

+ Change in accounts payable
$200
+ Change in crop inventory
($5,500)
+ Change in livestock inventory
($1,200)
= Program Year Margin
$23,000

Partnership percentage

Enter your partnership percentage using one of the following methods:

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

Reference Margin:
$150,000
Average Allowable Expenses:
$100,000
Program Year Margin:
$60,000

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 farmFootnote3 percentage using one of the following methods:

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

Reference Margin:
$150,000
Average Allowable Expenses:
$100,000
Program Year Margin:
$60,000

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:

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:

Support Level
$39,200
− Program Year Margin with adjustments
$10,000
= Decline
$29,200
× 70%
AgriStability provides coverage for 70% of the decline
= Estimated AgriStability Benefit
$20,440

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:

Reference Margin
$80,000
×
70%
Adjusted Reference Margin Limit =
$56,000

Applied Reference Margin

Your applied reference margin is:

  1. Your reference margin with adjustments or your reference margin limit, whichever is lower.

    Example A

    Reference Margin with adjustments
    $80,000
    Reference Margin Limit
    $40,000
    Lower of Reference Margin with adjustments or Reference Margin Limit
    $40,000
  2. 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
    $40,000
    Adjusted Reference Margin Limit
    $56,000
    Higher of Reference Margin Limit or Adjusted Reference Margin Limit
    $56,000
    Applied 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:

Applied Reference Margin
$56,000
×
70%

= Support Level
$39,200

Program Year Margin with adjustments

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