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AgriStability and Insurance Risk Management Overview for Ontario Producers

April 15, 2020

AgriStability and Insurance Risk Management Overview for Ontario Producers

Synopsis
Minute Read

Even in the best of times, farming is a risky business with exposures in various areas including people, finance, markets, management, business environment and production. This overview shows various perils covered by different types of farm insurance.

AgriStability and Insurance Risk Management

Even in the best of times, farming is a risky business with exposures in various areas including people, finance, markets, management, business environment and production. With multiple risks to consider and various insurance programs to cover them, it can be a challenge to determine the best course of action for your farm’s annual insurance risk management strategy.

Farm Business Risk Management Overview (Ontario)

AgriStability Crop Insurance RMP
1 Coverage Type Whole farm Individual crop Individual commodity
Crop Yield Loss (field perils) Yes Yes No
Livestock Disease and Mortality Yes No No
Crop Post-harvest Perils (non-field perils) Yes No No
2 Price Loss Yes No Yes
3 Increased Input Costs Yes No Yes
Advance Payments Program Eligible Yes Yes No
Relative Timing Of Cash Flow After Loss 4 Typically, <6 months from time of application Immediate after-loss is known and claim is filed and adjudicated Crops: Pre-harvest payment in November; post-harvest payment and final settlement in May / June the following year. Livestock: Quarterly payments, final settlement in following May / June
1 Income and expenses from crop insurance are included (allowable) in the AgriStability margin and payment calculations, whereas the income and expenses from the Risk Management Program are not allowable for AgriStability purposes. For producers who participate in both the Risk Management Program and AgriStability the linkage between these programs is very important to understand. Any Risk Management Program payment is applied against the Provincial portion (40 percent share) of the AgriStability payment and may reduce or eliminate only that portion of the AgriStability payment. The federal portion (60 percent share) of the AgriStability payment remains fully accessible to producers who participate in both programs.
4 AgriStability does allow for interim payments; however, the Interim Payment Application must be submitted to Agricorp before the year end of the applicant.

How MNP Can Help

MNP has developed an AgriStability payment calculator that allows us to track and support all calculations for each submission. Most importantly, this tool allows us to provide estimates of the expected payments to you. These payment estimates have proven invaluable as a means of comparison to the final calculations provided by Agricorp on the Payment Statement.

Contact your local Business Advisor or Farm Management Consultant to enrol if you have never participated or previously opted out of the AgriStability program.

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