MONEY MATTERS | AJ GILL
Changes to the AgriStability Program in British Columbia year-end record low temperatures. These effects were compounded with the ongoing risks experienced by agricultural producers every day.
2021 saw unique challenges for agricultural producers in British Columbia.
AgriStability is part of a suite of business risk management programs offered in British Columbia to support agricultural producers.
As the effects of COVID-19 continued to impact the lives and livelihoods of British Columbians, the province’s farms, orchards, vineyards, and greenhouses faced yet further challenges with the summer’s heat and wildfires, November’s devastating floods for berry growers and cold damage for grape growers and orchardists from
While crop insurance might cover some losses; AgriStability protects against declines in net farming income due to market prices, production losses, and/ or increased costs of production, like rising labour costs. Payments are made if a producer’s current year margin falls more than 30 percent below their reference margin.
The B.C. government, in collaboration with the government of Canada, has taken steps to provide producers with additional and immediate support: • The province has implemented Late Participation for the 2021 AgriStability program year. Late Participation means B.C. farmers that were not currently enrolled for the 2021 program year can still apply to enrol up until December 31, 2022. Late registrants in the 2021 program will receive a 20 percent lower payment rate than those who proactively enrolled. • Farmers who were either previously enrolled or will be enrolled as late participants in the 2021 AgriStability program year, are eligible to receive an enhanced interim payment.
The interim payment rate has increased from its previous maximum of 50 percent, to a maximum of 75 percent, of the estimated final payment. The enhanced interim payment, which is potentially available within a few weeks of completing an interim application form, could improve cash flow for farmers and help them continue operations after this very challenging year. • Producers with early fiscal year-ends might not realize losses due to flooding until the 2022 fiscal year, meaning those losses would be captured in the 2022 AgriStability program year. Producers can enrol up until April 30, 2022 for the 2022 program year and participate without incurring any late
Mother nature shows no mercy Determining the best farm business risk management strategies can feel overwhelming. Backed by 20 years of experience working for the federal and B.C. governments and as an advisor, AJ Gill brings extensive expertise about the various agriculture programs — so you find the right tools to maximize support and reduce your risks. AJ Gill, Senior Manager, Agricultural Risk Management Resources 250.469.6488 | aj.gill@mnp.ca MNP.ca
Spring 2022
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