Benefit of AgriInsurance and AgriStability
AgriStability
AgriStability is a Business Risk Management Program under the Sustainable Canadian Agricultural Partnership. It helps farmers manage income risk by providing financial assistance when their farm business experiences a large margin decline.
Full program details are available at www.agr.gc.ca/agristability.
AgriInsurance
The AgriInsurance program helps farmers manage income risk by providing assistance when production declines. By basing support on production (yield), it responds to losses in production of a particular commodity. It does not respond to changes in commodity prices or input costs.
Support is based on historical average production, generally with a quality guarantee and at standard market price. If production for the year is less than the guaranteed amount, a payment is triggered.
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In AgriStability, AgriInsurance premiums are allowable expenses and AgriInsurance payments are allowable income, in both the current and reference years.
Why Participate in Both AgriInsurance and AgriStability?
- AgriStability provides whole-farm coverage.
- AgriStability provides coverage for losses caused by rising input costs and declining commodity prices, in addition to production risks.
- AgriInsurance coverage is crop specific, so a producer who does not have a whole-farm margin decline may still have an AgriInsurance claim on one or more crops.
- AgriInsurance covers 100 per cent of loss below the guaranteed yield, whereas AgriStability pays 80 per cent of the decline greater than 30 per cent of the reference margin.
- AgriInsurance payments are allowable income in AgriStability, helping maintain and stabilize a producer’s reference margin. Because producers do not pay the full cost of AgriInsurance premiums, over time continuous participation in AgriInsurance tends to increase AgriStability reference margins.
- AgriInsurance claims are paid after harvest, whereas AgriStability claims are paid after the end of the fiscal year.
- Both AgriInsurance and AgriStability can be used as security for cash advances under the Advance Payment Program.
- AgriInsurance provides coverage against prevented planting due to excess moisture, reseeding benefit, forage establishment insurance, forage restoration benefit, forage insurance, and pasture insurance.
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Your Roadmap for AgriInsurance
Stay on track with key dates, deadlines, and reminders!
Your MASC insurance specialist is here to keep you on the path to success! We’ll touch base throughout the year to support you and your operation every step of the way. Download a PDF version of the AgriInsurance Roadmap to have on file.
