Important changes to AgriStability for 2020 and 2021
On March 25, 2021, federal, provincial and territorial Ministers of Agriculture agreed to the following changes to the AgriStability program:
- the reference margin limit will be removed retroactive to the 2020 program year
- the deadline to enrol for the 2021 program year will be extended from April 30 to June 30, 2021
In addition to the above changes, other important changes were made to AgriStability starting with the 2020 program year.
- a change to the treatment of private insurance indemnity payments
- a cash reference margin pilot project
Treatment of private insurance indemnity payments
Private insurance payments will be treated as non-allowable income in the calculation of the program year margin starting with the 2020 program year. This means that payments you receive from private insurance will no longer reduce the support you receive from AgriStability.
This change applies to private insurance payments from programs where the premiums are fully producer-funded and compensate for losses related to price, revenue, productions or margins. Private insurance payments will remain allowable in your reference years to ensure your support level does not decrease.
Report your private insurance payments using the line codes that have been assigned for private insurance programs on your 2020 form. Do not include private insurance payments with any AgriInsurance payments you receive.
AgriInsurance payments will continue to be treated as allowable income in the program year margin.
Cash reference margin pilot project
If you farm in Manitoba, New Brunswick, or Newfoundland and Labrador, and file your taxes on the cash basis, you can take part in a new pilot for the 2020 and 2021 program years. Under the pilot, you can have your reference margin based on the cash income and expenses you report for income tax purposes with no accrual adjustments. The pilot will allow you to align your reference margin with your tax filing method.
The purpose of the pilot is to make it easier for new and returning participants to apply for benefits by reducing the amount of historical information they need to provide, and to determine existing producers' interest in having their reference margins based on the cash versus accrual basis going forward.
In order to assess the impacts of the pilot, participants who elect to join the pilot in the 2020 program year will be required to participate in it for the 2020 and 2021 program years.
For more information on the pilot project, visit Cash Reference Margin Pilot.
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