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LIVESTOCK PRICE INSURANCE
Join Manitoba Beef Producers for a virtual Q&A session as we dispel common myths and answer important questions about the Livestock Price Insurance program.
Business Development Specialist
Manitoba Agricultural Services Corporation jeff Legaarden 11:00AM / THURSDAY, May 8th
Melissa Atchison
Research and Extension Specialist
Manitoba Beef Producers
In this edition...
Reminder
MBP is pleased to make available six $1,000 scholarships annually for MBP members or their children attending a university, college, other post-secondary institution or pursuing trades training. Preference will be given to those students pursuing a field of study related to agriculture or to those acquiring a skilled trade or pursuing a career that would be beneficial to the rural economy. The deadline to apply is Friday, June 20, 2025. Please see page 13.
Manitoba Government Extends Deadline for Agricultural Supports
(April 25, 2025 Province of Manitoba News Release)
The Manitoba government, in co-operation with the government of Canada, has extended the enrollment deadline for the 2025 AgriStability program by three months in response to tariffs in the agriculture sector and to allow producers additional time to enroll in the program as they manage the impact of current market disruptions, Agriculture Minister Ron Kostyshyn announced.
“Our government is doing everything it can to support Manitoba producers as they make it through today’s challenges and prepare for the future,” said Kostyshyn. “With stress and uncertainties beyond their control, extending this deadline will provide producers additional time to protect their margins from production loss and market disruptions, and help to manage the impact of challenges facing their farm operation.”
AgriStability is a business risk-management program under the Sustainable Canadian Agricultural Partnership (S-CAP) that helps famers manage income risk by providing financial assistance when their farm business experiences a large margin decline, noted the minister. The deadline will be extended from April 30 to July 31 of this year.
Kostyshyn is also encouraging producers to learn more about the business riskmanagement programs available through the Manitoba Agricultural Services Corporation (MASC).
“These products are excellent tools that allow producers to protect against fluctuating markets and interest rates,” said Kostyshyn. “I encourage all producers to contact their local MASC office and ask which financial management tools will help in making sound production decisions along with which lending and risk-management programs will help safeguard their farm operations and provide long-term success.”
Earlier in April, an additional $10 million in matching funds was announced for potential enhancements to the AgriStability program, along with $140.8 million in Budget 2025 for business risk-management programming including AgriInsurance, wildlife damage compensation and AgriInvest.
The Sustainable Canadian Agricultural Partnership is a five-year, $3.5-billion investment by Canada's federal, provincial and territorial governments to strengthen the competitiveness, innovation and resiliency of the agriculture, agri-food and agri-based products sector. This includes $1 billion in federal programs and activities and a $2.5billion commitment that is cost-shared 60 per cent federally and 40 per cent provinciallyterritorially for programs that are designed and delivered by provinces and territories.
For more information on these agricultural support programs, visit: www.gov.mb.ca/tariffresponse/index.html#agric ultural-supports
Please see the end of this newsletter for more information about the AgriStability changes.
Fire Bulletin #2: Updated Fire and Travel
Restrictions in Some Parts of Manitoba Take Effect at 8 a.m. May 2
(April 30, 2025 Province of Manitoba News Release)
The Manitoba Wildfire Service advises Level 1 fire and travel restrictions will be implemented at 8 a.m. on Friday, May 2, due to high fire danger in the southeast and Interlake regions of the province. Forecasted extreme winds, aboveaverage temperatures and low humidity levels are driving this restriction, which will remain in effect until sufficient foliage appears. Manitobans and visitors are urged to exercise caution and comply with all posted restrictions to prevent wildfire.
Areas 1, 2, 3, 5, 7 and 8 are affected. These restrictions include Whiteshell Provincial Park and Spruce Woods Provincial Park. The boundary of the restricted area is from Provincial Road (PR) 302 to Provincial Trunk Highway (PTH) 12 to PR 317 to PTH 59 and PR 319 east to the Ontario border and from the U.S. border north to Lake Winnipeg and the Winnipeg River including the Mars Hill Wildlife Management Area.
Refer to the areas of the fire and travel restriction map found at: www.gov.mb.ca/conservation_fire/Restrictions/i ndex.html
Level 1 fire and travel restrictions include the following:
• all fires prohibited between the hours 8 a.m. and 8 p.m. Fires outside of these hours must be in an approved campfire pit;
• motorized backcountry travel, including ATVs and other off-road vehicles, is prohibited during specified hours of 8 a.m. until 8 p.m.;
• motorized backcountry travel to access a remote cottage via forestry road, private road or trail between 8 a.m. and 8 p.m. will require a travel permit issued by Natural Resources and Indigenous Futures; and
• industry and outfitters should contact local Natural Resources and Indigenous Futures offices for more information.
As a further wildfire prevention measure, provincial burn permits issued under the Wildfires Act in the eastern and Interlake regions are cancelled and will not be issued until fire danger conditions improve. Burn permits for essential agricultural, municipal or industrial operations may be considered with the approval of an officer and will include a site inspection with strict conditions. Contact a Department of Natural Resources and Indigenous Futures office for more information. Further restrictions may be implemented if the fire danger levels increase or conditions change significantly. Failure to comply with the listed restrictions may result in prosecution under the Manitoba Wildfires Act with fines of up to $100,000 depending on the severity of the offence.
Many municipalities have proactively implemented burning restrictions this spring, so check with the local municipal office or view the interactive burning restrictions map at www.manitoba.ca/wildfire/burn_conditions.ht ml for more information. No burning permits will be issued for areas within or bordering any municipality where burning restrictions are already in place and permits are required for fireworks and sky lanterns from April 1 to Nov. 15.
Fire Bulletin #2: Updated Fire and Travel
Restrictions in Some Parts of Manitoba Take
Effect at 8 a.m. May 2
For areas where ATV use is allowed outside the travel restriction areas, riders are reminded they can play a role in protecting against wildfires. Anyone using an ATV is asked to stay on developed trails, ensure the ATV has a working spark arrestor, check areas around the engine and exhaust frequently, and carefully remove and extinguish any debris from these areas. Operators are also reminded to be prepared by carrying a fire extinguisher, axe and shovel. Sparks from trailer chains, lawnmowers and other outdoor equipment contacting hard
Take precautions, maintain equipment and be aware of hazards in work area.
For further information on the Manitoba Wildfire Service, situation updates, restrictions and other important wildfire links, go to www.gov.mb.ca/wildfire/ or follow the Manitoba government on X (formerly Twitter) at https://twitter.com/mbgov
To report a wildfire, call 911 or the TIP line tollfree at 1-800-782-0076.
Manitoba Government Provides Support to Businesses Affected by Economic Uncertainty Tax Deferrals will Give Businesses Liquidity to Keep Manitobans Employed
(May 1, 2025 Province of Manitoba News Release)
The Manitoba government is providing approximately $962 million in relief and support for workers and businesses impacted by tariffs from China and the United States, Finance Minister Adrien Sala announced.
“Our government is stepping up to help give businesses liquidity and keep workers employed during the uncertain economic wave we’re all riding now,” said Sala. “Budget 2025 delivers the biggest investment in capital projects like schools and hospitals in Manitoba’s history to put people to work and protect our economy. We’ll continue to invest in economic development, leaning into our role as a central trade corridor and reducing barriers to trade in Canada.”
education tax levy. Interest and penalties will be waived for amounts unpaid by businesses that have chosen to defer their February, March and April tax returns.
Beginning in February, all Manitoba businesses have been eligible to defer payments of the retail sales tax and health and post-secondary
The tax measures will give businesses approximately $840 million of liquidity over the three-month period. The minister noted the deferral is applicable to all businesses reporting provincially administered taxes.
The Workplace Compensation Board (WCB) is issuing $122 million in rebates for safe employers to support businesses and help keep workers on the job, the minister noted.
Manitoba businesses or workers that have questions or would like to provide feedback can contact the tariff hotline at 1-877-827-4330 (toll-free), 204-945-8011 or the province’s general line at 204-945-3744 or visit https://manitoba.ca/tariffresponse/
WCB distributes $122 million in surplus funds to Manitoba employers
(May 1, 2025 WCB News Release) The Workers Compensation Board of Manitoba (WCB) is distributing surplus funds to employers whose premiums fund the workers compensation system.
This distribution is credited to the WCB maintaining financial stability due to strong investment and financial management. This demonstrates our commitment to offer low and stable employer premiums and protect Manitoba’s workforce. The WCB can distribute funds that have built up, while also ensuring long-term sustainability of the system.
“Today we are announcing the distribution of surplus funds to our employers,” says Chair, Colin S. Robinson. “Strong investment returns, prudent financial management, and a stable reserve fund have allowed us to return $122 million to employers. This distribution will support the Manitoba economy and offer employers the opportunity to reinvest in safer workplaces.”
In May, eligible employers will receive a credit equivalent to 50 per cent of their 2024 premium. To qualify for the refund credit, employers must have fulfilled their 2024 payroll reporting responsibilities and owed a WCB premium. Employers who have not yet reported their 2024 payroll can still submit their information to receive the surplus distribution.
The Workers Compensation Board of Manitoba serves workers and employers through a no-fault insurance system integral to the Manitoba economy. Funded collectively by employers, the WCB promotes safe and healthy workplaces, facilitates recovery and return to work, delivers compassionate and supportive compensation services to workers and employers, and ensures responsible stewardship of Manitoba’s workers’ compensation system. For more information, visit wcb.mb.ca.
Trade Commissioner Service announces new resources to support Canadian exporters facing U.S. tariffs
(April 30, 2025 Global Affairs Canada News Release)
As part of Canada’s ongoing support for Canadian businesses facing the unjustified tariffs imposed by the United States (U.S.), Global Affairs Canada announces the launch of new resources from the Trade Commissioner Service (TCS) aimed at supporting Canadian exporters to help them benefit from the tarifffree treatment provided under the CUSMA.
To better assist exporters, the TCS is providing new and comprehensive information on rules of origin and customs procedures under the Agreement, including:
• a web page on understanding CUSMA compliance,
• a step-by-step guide to CUSMA compliance,
• self-serve resources for problem solving related to tariffs, and
• a list of support programs available to businesses from federal and provincial partners.
Small and medium-sized enterprises (SMEs) can also call the Government of Canada’s dedicated phone line for information on CUSMA compliance. The new hotline, available at 1-833760-1167, offers advice on:
• CUSMA rules of origin
• certification of origin
• resources for customs procedures at the U.S. border.
The hotline is operational Monday to Friday, from 7 a.m. to 8 p.m. E.T.
Quick facts
• On March 4, 2025, the U.S. imposed tariffs of 25% on goods imported from Canada, and 10% on energy products imported from Canada. As of March 7, 2025, a tariff exemption applies for Canada-United StatesMexico Agreement (CUSMA)-compliant goods (i.e., goods that qualify for preferential treatment under the Agreement).
• The TCS has been helping Canadian companies and organizations of all sizes grow and operate internationally for over 125 years.
• The TCS supports Canadian businesses that have economic ties to Canada, the potential to contribute to Canada’s economic growth, and the ability to internationalize.
• Our network of Trade Commissioners in more than 160 cities around the globe connects Canadian businesses with qualified contacts, funding, and support programs, and provides key information to help seize international opportunities and succeed in markets around the world.
• The TCS is present in 16 Canadian missions in the United States, with a total of approximately 180 employees supporting international business development initiatives.
Associated links
• Support for Canadian exporters faced with U.S. tariffs
• Supporting Canadian exporters through United States tariff challenges
• Self-serve resources for problem solving
• Understanding CUSMA/USMCA compliance
• Step-by-step guide to CUSMA compliance
• Diversify your exports with the Trade Commissioner Service
• Canada’s engagement with the United States
Head Office #180, 6815 – 8th Street NE
Calgary, Alberta
T2E 7H7
Phone: (403) 275-8558
Email: contact@cattle.ca
Ottawa Office
#1101, 350 Sparks St.
Ottawa, Ontario
K1R 7S8
Phone: (613) 233-9375
Jennifer Babcock Promoted to Chief Government and International Affairs Officer
May 1, 2025
The Canadian Cattle Association (CCA) is pleased to announce the promotion of Jennifer Babcock to Chief Government and International Affairs Officer, a new leadership role within the organization. Since first joining CCA, Babcock has a proven track record of advocacy successes including multiple campaigns, issues management and continuing to build our reputation as an effective stakeholder. Her efforts led to a consistent position on the Hill Times Top 100 Lobbyists list. As we continue to deepen our Canadian and global advocacy efforts, Babcock will lead CCA’s initiatives to promote and protect the interests of Canada’s beef cattle industry both domestically and internationally.
“I look forward to my new and expanded leadership role on CCA’s advocacy efforts,” says Babcock. “Following our board’s direction, CCA staff has developed a priority list of policies and regulatory changes to help support success for Canadian cattle producers and we look forward to working with our new government representatives to implement them and ensure the continued sustainability and longevity of our cattle industry.”
For further information, contact:
Tina Zakowsky Communications Manager
Canadian Cattle Association 403-451-0931 | zakowskyt@cattle.ca
Head Office #180, 6815 – 8th Street NE
Calgary, Alberta T2E 7H7
Phone: (403) 275-8558
Email: contact@cattle.ca
Ottawa Office #1101, 350 Sparks St.
Ottawa, Ontario K1R 7S8
Phone: (613) 233-9375
Canadian Cattle Association Congratulates New Government
April 30, 2025
On behalf of beef producers across Canada, the Canadian Cattle Association (CCA) congratulates the Liberal Party of Canada on forming the next federal government and welcomes all Members of Parliament elected or re-elected to Canada’s 45th Parliament. In order to grow our herd, meet the increasing world demand for high quality beef, and keep our costs competitive, we need impactful government policies, legislation and regulatory reform for beef producers
“We look forward to working with Prime Minister Carney, cabinet ministers and all Parliamentarians to ensure our economic growth as a sector and as a country, starting with a strong focus on our relationship with the United States,” says CCA President Tyler Fulton.
The global demand for beef production has never been greater and Canadian beef producers are a key economic driver for Canada all market signals show there is an opportunity to grow our herd. Our priorities for policy makers include trade and market access; reducing regulatory barriers, and supporting effective economic tools including livestock price insurance.
Export driven agriculture continues to be a key growth sector of Canada’s economy, and the beef cattle sector is the largest commodity in Canada, contributing $29 billion to GDP, with more than 347,000 full-time-equivalent jobs. With the uncertainty of trade and geopolitical tensions, we need strength and leadership to build strong policies that support economic growth.
For further information, contact:
Tina Zakowsky Communications Manager
Canadian Cattle Association 403-451-0931 | zakowskyt@cattle.ca
The Canadian Cattle Association is the national voice for Canada’s beef cattle industry representing 60,000 beef farms and feedlots www.cattle.ca
Calling all Graduate Students! Applications for CRSB's Student Sponsorship are now OPEN!
The CRSB is looking to invite two students studying sustainability in the Canadian beef industry to our Annual General Meeting (AGM) in Toronto, Ontario, September 23 & 24, 2025. During the meeting successful students will have the opportunity to present, then showcase their research with a poster while networking with members representing all areas of the Canadian beef sector.
Two successful students will be selected for participation.
Details and the portal for submission of abstracts here. Abstract submission closes June 30th, 2025 at 11:59 PM MT.
Students are invited to register for the Global Roundtable for Sustainable Beef Communicators' Summit being held September 25th. Details to come.
MANITOBA BEEF PRODUCERS 2025-26 Scholarship Intake
Manitoba Beef Producers is pleased to make available six $1,000 scholarships annually for MBP members or their children attending a university, college, other post-secondary institution or pursuing trades training. Preference will be given to those students pursuing a field of study related to agriculture or to those acquiring a skilled trade or pursuing a career that would be beneficial to the rural economy.
This application process is for students who will be undertaking post-secondary studies or trades training in the 2025-26 academic year. The deadline to apply is 4:30 p.m. on Friday, June 20, 2025.
The scholarship criteria are as follows: Eligibility:
• Must be an active Manitoba beef producer or the child of an active Manitoba beef producer Note: This can also include active beef producers returning to school after a period of time in the workforce.
• Must be pursuing post-secondary studies or trades training in the 2025-26 academic year.
• Post-secondary programs or trades training must be a minimum of one academic year in duration.
Items You Are Required to Submit:
• The completed application form;
• Either a typed 600-word (maximum) essay OR a 5-7 minute maximum video submission discussing the topic “What the beef industry means to my family, my community and Manitoba.” Also, you need to identify in the essay or video the reasons you enjoy being involved in agriculture*;
• A copy of your transcript (either high school, or a recognized college, university or trade school);
• Proof of enrolment in a recognized institution (current transcript, or your acceptance letter, or a letter of intent indicating your intended institution and field of study for 2025-26);
• A list of your community involvement (e.g. 4-H, community clubs, volunteer work, etc.); and,
• The names of two references, including their addresses and telephone numbers
*Note: Scholarship winners’ essays or video submissions and photos will be published in Manitoba Beef Producers’ newspaper Cattle Country in fall 2025 or posted to MBP’s social media channels and website.
The completed application, all supporting documents, references, required essay or video, etc. must be submitted to MBP no later than 4:30 p.m. Friday, June 20, 2025 to the attention of:
Manitoba Beef Producers Scholarship Committee
220 – 530 Century Street
Winnipeg MB R3H 0Y4
E-mail: info@mbbeef.ca
Fax: (204) 774-3264
For more information, including steps on how to submit your video, please contact Manitoba Beef Producers at 1-800772-0458 or email info@mbbeef.ca. A selection committee will review the submissions. Winners will be notified by September 12, 2025.
MBP 2025-26 Academic Year SCHOLARSHIP APPLICATION
PLEASE PRINT
Name:
Mailing address: _______________________________________________________________________
Telephone: _____________________________
Date of birth: _____________________________
Email:
Parents’ names if you are under 18: _______________________________________________________
Are you a beef producer? _____________________________
Are you the child of a beef producer? ________ If yes, what is their name(s)? __
Current institute of enrolment: ________________________________________________________
Institute and your intended program of post-secondary study or skilled trades training in 2025-26:
Duration of post-secondary program or skilled trades training: _________ year (s)
Essay or Short Video Submission Requirement: Please submit either a typed 600-word (maximum) essay* OR a 5-7 minute video on the topic “What the beef industry means to my family, my community, and Manitoba.” Also include the reasons you enjoy being involved in agriculture. No preference will be given to either option.
*Note: Scholarship winners’ essays or video submissions and photos will be published in Manitoba Beef Producers’ newspaper Cattle Country in fall 2025 or posted to MBP’s social media channels and website.
Please return the following no later than 4:30 p.m., Friday, June 20, 2025:
• completed application form;
• typed essay or video submission;
• a copy of your transcript;
• proof of enrolment in a recognized institution or an apprenticeship program (current transcript, letter of acceptance, or a letter of intent to pursue further studies);
• a list of your community involvement; and,
• your references
To: Manitoba Beef Producers Scholarship Committee
220 – 530 Century Street Winnipeg, MB R3H 0Y4
Email: info@mbbeef.ca Fax (204) 774-3264
SCHOLARSHIP APPLICATIONS NOW OPEN FOR THE 2025 CANADIAN BEEF CHECK-OFF AGENCY AWARD
It is no surprise that Canada’s beef industry continues to focus on the engagement of young entrants into the beef industry, whether that be grassroots producers, future leaders of our national and provincial organizations, or industry partners along the value chain.
The Canadian Beef Check-Off Agency (the Agency) continues to diversify its youth strategy with the renewal of the annual scholarship, aimed at students who intend to make an impact in Canada’s beef industry.
The scholarship is open not only to beef producers and those directly involved with their families, but it is open to students who can see unique ways to make an impact through marketing, research, public engagement, and other areas where check-off dollars are invested to generate value for the beef industry in Canada.
“We are working hard to ensure that we are engaging the next generation of industry leaders,” said Trevor Welch, Agency Chair. “This scholarship allows us to reach pockets of young producers that we often find it challenging to connect with.”
Adeleen Bolduc, the Agency’s Youth Member and member of the scholarship committee, sees value in the extensive range of career paths that can help shape Canada’s beef industry.
“Our scholarship outreach is one of the most successful communications programs to date at the Agency ”, said Bolduc. “We have been focusing on different platforms to get the word out to young beef industry stakeholders and it has been extremely positive.”
While preference may be given to applicants who are beef producers or have a background in agriculture, it is not a requirement for the scholarship.
Applicants are asked to submit a 1-2 minute video, showcasing their desire to improve and grow Canada’s beef industry in a unique way. The investment of the beef check-off in Canada delivers value to the beef industry, and the scholarship seeks to support those who want to make an impact in the same way.
The deadline for scholarship applications is June 30, 2025 and the selected applicant will be announced during the Agency’s AGM in August 19, which will be held virtually.
Apply by June 30 at cdnbeefcheckoff.ca/scholarship
Trevor Welch, Agency Chair
Adeleen Bolduc, Agency Youth Member
CANADIAN BEEF CHECK-OFF AGENCY
SCHOLARSHIP
The Canadian Beef Check-Off Agency has established a scholarship to encourage and support students pursuing post-secondary studies in the field of agriculture, agricultural research, or with an agriculture background pursuing studies in marketing or other areas of impact to the beef industry.
ELIGIBILITY CRITERIA
To be eligible for the $2000 scholarship, applicants must:
• be a Canadian citizen or permanent resident
• be accepted to or attending a designated post secondary institution
• be accepted to or attending a full-time program relating to:
• agriculture or agriculture business
• marketing, communications or public relations
• science and research including veterinary medicine
• human health and nutrition
• policy and economics
Note: Preference will be given to applicants who are active beef producers or have a background in agriculture, but it is not a requirement.
HOW TO APPLY
Applicants must submit to the Canadian Beef Check-Off Agency:
• an application form
• a link to a creative video no longer than two minutes, showcasing how their background in agriculture, paired with their education, can help grow the future of the beef industry in Canada
• an official acceptance letter or current enrollment document to a designated post-secondary institution
Videos must be posted to YouTube, marked as public, and the link shared in the application form.
The recipient will be selected by committee on the basis of video content, and desire to improve and grow Canada’s beef industry in a unique way. Knowledge and understanding of Canada’s national beef strategy, checkoff system and national beef organizations is preferred.
https://agriculture.canada.ca/en/programs/agristability
Overview
• AgriStability is a margin-based program that provides support for larger income losses.
• Benefits are based on a decline in a farm’s current year margin (program year margin) compared to their average historical margin (reference margin).
• All sources of farming income are considered when calculating program benefits; not commodity specific.
• To participate, a producer must have been farming in Canada during the program year and reported farming income (or loss) for tax purposes.
• Must also have completed at least 6 months of farming activity AND a production cycle (unless prevented from doing so by disaster circumstances).
Steps to Participate
• Participation involves three main steps:
AgriStability Program Fee
• Fee for current (on-going) participants – are based on the contribution reference margin, which is the reference margin from the previous program year.
• We base your fee on the contribution reference margin because your reference margin for the current program year is not available when we calculate your fee.
• The fee to protect your farm is equal to 0.45% of your contribution reference margin multiplied by the 70% support level. That means you pay $3.15 for every $1,000 of protected reference margin. The minimum fee is $45.
AgriStability Program Fee (con’t)
Margin-Based Coverage
• AgriStability provides income protection based on annual production margins
A production margin is equal to allowable income minus allowable expenses
• allowable income generally includes all commodity sales and certain program payments (e.g. Crop Insurance)
• allowable expenses are those that capture input costs directly related to the production of commodities in a given year (examples: fuel, fertilizer, seed, feed, arm’s length labour), but do not include capital costs such as land or equipment
Margin-Based Coverage (con’t)
• The current production margin (the program year margin) is compared to an average historical production margin (the reference margin) to determine if an income decline has taken place and, if so, the amount of the decline
• The reference margin is calculated using an Olympic Average of the previous 5 years OR an average of the previous 3 years for producers without 5 years of farming history
• Olympic Average drops the highest and lowest margin years and then averages the remaining three
• If a producer has less than 3 years of history, the administration creates the missing years using industry average margins
• Both the program year margin and the reference margin are subject to a series of adjustments under the program to ensure a fair and accurate comparison
Accrual Adjustments
• Canadian producers have the option of reporting their income to CRA on either the cash or accrual basis of accounting
• margins calculated for most producers are on the cash basis of accounting, as most report their finances this way for tax purposes
• Cash reporting may not reflect the value of production/fiscal realities within a given program year
• commodities produced in the program year that are in inventory are not included, while sales from previous years’ production are included
• similarly, outstanding bills related to the program year are not included, while bill payments for the previous year are included
Accrual Adjustments (con’t)
• To isolate the income situation in a program year, accrual adjustments are applied to the cash-based margin for each year; they measure changes in the value of:
• Inventory (commodity on hand)
• Receivables (amounts owed to the producer)
• Payables (amounts owed by the producer)
• Purchased inputs (pre-paid input stocks)
• These adjustments are not applied to participants who file their taxes on the accrual basis, as they are already built into their reporting
Accrual Adjustments - Inventory Valuation
• Detailed inventory counts and valuation at the start and end of the year are necessary to calculate the adjustment for program purposes; this is typically a more involved process than calculating the other accruals
• AgriStability uses the Hybrid Inventory Adjustment to measure changes in the value of inventory (“Hybrid” refers to the fact that the valuation approach changes for different types of commodities)
• For most commodities, AgriStability values the change in both the quantity and price of inventory across the year:
(Year End Quantity x Year End Price) Minus
(Year Open Quantity x Year Open Price) Equals
Change in inventory value
Accrual Adjustments - Inventory Valuation (con’t)
• There are two types of commodities that are not valued this way:
1. breeding livestock – hybrid method values the change in quantity only
(Year End Quantity – Year Open Quantity) x Year End Price
2.perishable commodities – hybrid method values perishables on a receivables basis, as the actual sales values are known at time of application
Structural Change
• The comparison between the program year and reference margin may not be valid if a significant change in the size or type of an operation has taken place over the years used in the calculation
• for example, the program may be comparing the margin of a much larger current farm with a smaller historical farm, or a current livestock-based operation with a historically crop based operation
• To ensure an accurate comparison, adjustments to the reference margin may be required
• margins from previous years which are used to calculate the reference margin are adjusted to reflect a farm’s size and type in the program year
• Adjustments are calculated for every file based on the productive capacity reported for each year but are only applied if they result in a change in the reference margin of at least 10% and $5000.
• approximately half of participants have a structural change adjustment applied as a result of this threshold
Calculating a Structural Change
• There are two methods that can be used to calculate structural change adjustments:
Ratio method (default method)
• standard method for calculating adjustments, used in the majority of cases
• changes each reference year margin by the same percentage that productive units have changed between it and the program year
Additive method (alternative method)
• used in specific circumstances where ratio method does not produce accurate results (i.e. where previous performance is not an accurate predictor of future performance)
• changes each reference year by adding or subtracting an industry average benchmark margin amount based on the change in units
• Both structural change methods utilize Benchmark Per Unit (BPU) margins in their calculations.
• A BPU is the industry average margin for one productive unit of a given commodity, in a specific region.
• It represents the difference between the allowable income and expenses related to one productive unit of a commodity. For example, a crop BPU would equal the average margin related to producing one acre of crop. Breeding livestock would equal the average margin related to one productive cow.
Methods in Detail – Ratio Method
The ratio method accounts for physical changes in the farm structure by:
• determining the margin the farm would have had in the reference year based on their production in the program year
• dividing this margin by the actual margin for the year to establish a change ratio (factor by which the margin would change given current size)
• applying this ratio to the margin for the reference year
Methods in Detail – Additive Method
The additive method accounts for physical changes in the farm structure by:
• establishing the difference in productive units for each commodity between the program year and reference year (will produce a negative amount if units have gone down)
• multiplying that difference by a benchmark per unit margin (BPU) for that commodity type
• adding the resulting amount to the margin for that reference year
Additive Method - Example
Benefit Calculation
• Income loss for program purposes is measured by comparing the program year margin to the reference margin
• if the participant’s program year margin has declined by more than 30% relative to the reference margin, an AgriStability payment is triggered
• program payments cover 80% of the loss for every dollar of decline beyond the 30% threshold
• the maximum payment allowed under the program is the lesser of three million dollars or 70% of the difference between the reference margin and the program year margin.
• Negative margin losses are also covered at 80% under the program
• occur when allowable expenses exceed allowable income in the program year
• if producers have not participated in AgriInsurance at the minimum required level, program payments for negative margins are reduced to reflect amounts that could have been received under AgriInsurance
• AgriStability files with negative margins are sent to AgriInsurance administrations to determine whether any reduction is required
AgriStability Coverage
Benefit Calculation Example
Changes to AgriStability –
Increased Compensation Rate
• Initial changes to AgriStability under the Sustainable Canadian Agricultural Partnership Framework saw the compensation rate change from 70% to 80% starting in the 2023 program year
Changes to AgriStability –Advanced Deadlines
• Starting in the 2024 program year, deadlines have changed to June 30th for submitting program forms (or September 30th with penalty).
• The enrolment and fee deadlines have not changed Given the pressures and uncertainties facing the agricultural sector, federal, provincial and territorial governments have agreed to extend the AgriStability enrolment deadline from April 30, 2025, to July 31, 2025, for the 2025 program year.
Changes to AgriStability –
Tax-Aligned Reference Margin
• Also, starting in the 2024 program year, AAFC offered the taxaligned reference margin as a choice to producers in the provinces and territories where AgriStability is federally administered (Manitoba, Nova Scotia, New Brunswick, Newfoundland & Labrador, Yukon and Northwest Territories).
• Reference margins will be based on a participant’s tax filing method (cash or accrual). The information used to calculate the reference margin will generally be available as part of a producer’s tax filing.
• Participants who file to CRA using cash accounting (95% of AgriStability participants) will no longer need to submit up to 5 years of historical accrual information, significantly reducing the information requirement.
• Participants who file to CRA using accrual accounting will continue to have their reference margins based on the 5 years of historical accrual income and expense information they report to CRA for tax purposes.
• Note: This only applies to your reference margin. Your program year margin will remain on the accrual basis.
Changes to AgriStability –
Coverage Notices
• Participants who elected for tax-aligned reference margins can submit their current year’s intended productive units and receive a coverage notice that provides their estimated reference margin and coverage level for the current program year.
• Because producers will know their coverage level through the coverage notices, those who believe they would not qualify for a payment do not need to submit a current year application, which collects detailed supplementary information. This reduces the need to provide unnecessary information and potentially saves money in accounting fees.
To Take Advantage of Tax-Aligned Reference Margins
Producers must:
1. be enrolled in AgriStability.
2. complete and sign a consent form by the deadline (or before an application is processed).
• by completing a consent form, a producer agrees to have their reference margin calculated using the same accounting method they report for tax purposes
• the deadline to submit a consent for the 2024 program year is March 31, 2025.
• if a producer chooses not to opt in to tax-aligned reference margins for 2024, they will be able to participate for 2025 or a subsequent program year if they enroll in AgriStability for that year
To Take Advantage of Tax-Aligned Reference Margins (con’t)
3. complete an Intended Productive Capacity Form to receive a Coverage Notice
• after receiving a completed Intended Productive Capacity Form, the Administration will send the producer a Coverage Notice with details of their estimated reference margin and coverage level
• producers must have opted into tax-aligned reference margins before a coverage notice is issued (i.e. coverage notices will not be issued to producers who have not opted in)
Additional Details
• Producers who opt into the tax-aligned reference margin program feature will continue to participate using their tax-aligned reference margin in subsequent years.
• The default method for calculating structural change for cash filers will be the additive method. For accrual tax filers, the default method will remain ratio.
• Each partner in a partnership can independently decide whether to opt into tax-aligned reference margins (i.e. not all partners have to opt in).
MyAAFC Account
Did you know?
• Agriculture and Agri-Food Canada has an online service that provides easy and secure self-serve access to producers’AgriInvest and AgriStability account information.
• With My AAFC Account producers can:
• Access their AgriStability and AgriInvest statements online, anytime, anywhere
• Allow a representative, such as their accountant, access to their program information online
• Communicate one-on-one with the Administration electronically in a secure environment
• Receive a notification when a new statement is available in their account, and much more!
To learn more and sign up, visit MyAAFC Account at https://agriculture.Canada.ca/my-aafc-account.