Close up of a persons hand walking through a wheat field

AgriStability and Insurance Risk Management Overview for Ontario Producers

AgriStability and Insurance Risk Management Overview for Ontario Producers

Synopsis
Minute Read

Read more
Insight
Agriculture

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)

Risks 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 enroll if you have never participated or previously opted out of the AgriStability program.

Related Content

  • Progress

    Your farm succession plan isn’t complete until it exists in writing

    The average age of farmers in Canada is increasing. Having a written succession plan becomes more important as you age, to help secure your legacy, protect your farm operation, and reduce conflict.

    Read more

  • Performance

    Cash vs. accrual: Pros and cons of each reference margin reporting option for AgriStability

    When it comes to the kind of financial reporting you’re doing for your farm, there are significant differences between cash and accrual reporting, especially when it comes to AgriStability payments. To better understand what might be more beneficial for your farm, it’s key to assess your operation to determine how best to move forward.

    Read more

  • Confidence
    December 20, 2023

    Bare trusts: Many Ontario farmers expected to have new tax filing requirements

    The end of 2023 brings a new tax filing burden for farmers with regards to bare trusts. Learn how this new legislation with have a significant impact.

    Read more

Insights

View all
  • Performance

    April 17, 2024

    Conflict in the workplace: the ripple effect on small businesses

    Conflict in the workplace can impact small businesses, affecting team dynamics, productivity, and company culture.

    Read more

  • Confidence

    April 17, 2024

    Following these steps will protect your practice value if emergency strikes

    You can’t predict the future, but building a plan helps to keep your business protected.

    Read more

  • Performance

    April 16, 2024

    Software in British Columbia: Taxation in perpetual motion

    What software is taxable in British Columbia for PST purposes? Discover the changes introduced in the province’s 2024 budget.

    Read more