AgriStability program will show its mettle during times of uncertain profit margins
By ALEX McCUAIG Local Journalism Initiative Reporter on July 2, 2021.
amccuaig@medicinehatnews.com The deadline for agricultural producers to sign up to the AgriStability program passed this week just as a record-setting period of exceedingly hot temperatures threatened ranch and farming operation’s profit margins. “There has been a significant change to the program,” said Steve Funk, director of farm programs for accounting firm MNP. The joint federal-provincial program provides protection for producers against large declines in income from both conventional risks as well as those from market and international trade forces. The changes put in this year include the removal of reference margin limits – a part of the compensation formula which critics said negatively affected agricultural operations with moderate to low cost structures. “The program has just got a lot more responsive to them,” said Funk of the current situation. The usual deadline for the program is in April but following a late-March meeting of provincial agricultural ministers who agreed to remove reference margin limits, that deadline was pushed to the end of June. Funk stressed the program’s biggest benefit is coverage of the unforeseen risks that can blindside farmers and ranchers – from COVID-19 to trade sanctions. The program is currently the subject of provincial-federal wrangling as the federal government has proposed enhanced benefits from 70 to 80%, but only if provinces increase contributions to the cost-sharing funding of AgriStability. 10-9
