The Growing Forward farm business risk management initiative, which is a coordinated by federal and provincial initiative, is a suite of programs designed to help the agricultural sector become more prosperous, competitive and innovative.
The programs are:
- AgriInsurance (an expanded production insurance program)
- AgriRecovery (a national disaster framework)
As a farm producer you should consider these program in your overall risk management strategy as it provides flexible coverage for income declines and supports investments to help mitigate risks or to improve farm income.
Important program deadlines are noted below.
- File 2012 AgriInvest application without penalty - September 30, 2013
- File 2012 AgriInvest application with penalty - December 31, 2013*
- Make 2012 AgriInvest deposit - 90 days from issue of Deposit Notice
*If the September 30, 2013 deadline is missed, the application can still be submitted until December 31, 2013 subject to a 5% reduction in Allowable Net Sales (ANS) for each month (or each part of the month) that the application is submitted late.
AgriInvest is based on individual accounts into which a producer can deposit 1.5% of Allowable Net Sales (ANS) annually, with matching funds added by the federal and provincial governments. There is an annual deposit cap of $22,500 based on $1.5 million of ANS. Beginning with the 2008 program year, there also is a lifetime account deposit cap of 25% of average ANS for the program year and the two previous program years. Based on an ANS limit of $1.5 million, the largest account balance would be $375,000. Once you reach your maximum account balance, you are no longer eligible to receive matching government contributions.
Each AgriInvest account is made up of two parts: Fund 1 represents your contributions, and Fund 2 represents the governments’ matching contributions plus account interest. Fund 2 withdrawals are taxable.
You can make AgiInvest deposits at a participating financial institution. Once your deposit is processed and government contributions are credited to your account, you can withdraw your AgriInvest funds at any time through your financial institution.
* Note: When filing with penalty, the ANS used to calculate your maximum matchable deposit will be reduced by 5% for each month (or each part of the month) that your application was submitted late.
|Jurisdiction||BC and Manitoba||Alberta and
|Existing participants - Select coverage, Return Enrollment Notice (EN)||Automatic||Automatic||Automatic|
|New part. - enroll via "New Participant Package" (NPP)||April 30, 2013||April 30, 2013||April 30, 2013|
|-Return EN||Later of April 30, 2013 & 30 days from issue of EN||Later of April 30, 2013 & 30 days from issue of EN||Later of April 30, 2013 & 30 days from issue of EN|
|-pay $55 ACS & 0.45% fee||
Later of April 30, 2013 & 30 days from issue of EN (Dec 31, 2013 for late-paid fees subject to 20% penalty)
|Later of April 30, 2013 & 30 days from issue of EN (Dec 31, 2013 for late-paid fees subject to 20% penalty)||Later of April 30, 2013 & 30 days from issue of EN (Dec 31, 2013 for late-paid fees subject to 20% penalty)|
|Jurisdiction||BC and Manitoba||Alberta and
-form T1163 for individuals
|Sept. 30, 2013 (T1273)||Sept. 30, 2013||June 15, 2013|
|-statement A for corporations||Sept. 30, 2013 (Harmonized with AgriStability Supplementary forms)||Sept. 30, 2013||June 30, 2013|
File AgriStability Supplementary forms
|Sept. 30, 2013||Sept. 30, 2013||June 30, 2013|
Sept 30, 2013 (Dec 31, 2013 for late-filed subject to $500/month penalty)
(Harmonized with T1273/Stmt A)
|Sept 30, 2013 (Dec 31, 2013 for late-filed subject to $500/month penalty)||June 30, 2013|
AgriStability provides margin loss protection based on your program year production margin. A program payment can be triggered when the current year program year margin drops below 70% of your reference margin. Your reference margin is your average program margin for three of the past five years after the highest and lowest margin years are dropped from the calculation.
To participate in the program, there is an annual fee based on 0.45% of your reference margin protected (based on coverage of 70% of your margin). There is a minimum fee of $45. There is an additional annual charge of $55 to cover administrative costs.
Your participation in AgriStability means the collection of extensive information every year. This includes detailed opening/closing inventories, including reconciliation of changes; receivables and payables; and livestock and cropland productive capacity and production margins for the current and previous 5 years.
FBC Will Help You Make the Most of the Growing Forward Programs
FBC can help you with completion of your AgriStability application and other forms, but you must keep on top of the requirements and deadlines set by the AgriStability Administration in your area.
For a free, no-obligation consultation or if you have questions about any of these business risk management programs, contact FBC at 1-800-265-1002 or [email protected].