Farming can be a risky business, filled with unexpected challenges like adverse market conditions, increased costs and production losses. And while you can’t control those factors, you can manage your risk with AgriStability.
AgriStability, a whole-farm risk management tool, helps producers protect their operation from large margin declines that may threaten the viability of their farm. Coverage is based on the unique history of each participating farm. Benefits are calculated by comparing each farm’s current year numbers to the past five years.
Some recent changes to the program have made it more responsive and easier for producers to navigate. These include changes to how private insurance payments are treated and the removal of the reference margin limit.
“Producers have been telling us that the AgriStability reference margin limit was a concern, and last spring, Canada’s ministers of agriculture agreed to remove the reference margin limit,” explained Ed Ten Hove, product coordinator AgriStability with Agriculture Financial Services Corporation (AFSC).
“This change will have a significant impact for producers. We predict that approximately half of participants will benefit from the change over time and their coverage could be increased by up to 30 per cent.”
Before this change, triggering a payout required a significant drop in a producer’s margin; however, with the removal of the reference margin limit, a 30 per cent drop in the current year may trigger a payout. Sectors most likely to benefit from the removal of limiting include livestock producers who grow their own feed, organic and commercial crop and forage producers, members of the apiary industry and mixed farmers.
Other enhancements to AgriStability
Private insurance payments are no longer included in the current year, but are now included in the farm’s history. This raises the coverage level, which means producers are no longer penalized for proactively managing their price risk by using private insurance. This change applies to Livestock Price Insurance and AFSC Straight Hail Insurance.
“We’ve also taken steps to improve our clients’ overall experience with AgriStability,” said Ten Hove. “We’ve added online tools including Live Chat on our website and AFSC Connect enabling our clients to get the help they need. There’s also an online form submission option which allows clients to file their forms at their convenience.
“To get money back in producers’ pockets as soon as possible, AFSC has worked diligently to improve processing times.”
Each farm is different, and one of AgriStability program’s strengths is its individualized nature. If you want to learn how AgriStability might fit in your risk management plan, please reach out to our team members today and find out how your farm could benefit from AgriStability.
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