AgriStability: another tool to help manage risk

0

AgriStability, a farm-level risk management tool, helps producers protect their operations against significant margin declines that could threaten the viability of their operation. Coverage is based on the unique history of each participating farm. Benefits are calculated by comparing each farm’s current year numbers to the last five years.

The deadline to register for AgriStability has been extended to June 30, 2022. This extension gives producers more time to determine how AgriStability might fit into their risk management plans.

Some recent changes to the program have made it more responsive and easier to navigate for producers. These include changes to the processing of private insurance payments and the removal of the reference margin limit.

“Producers told us that the AgriStability reference margin limit was a concern, and last spring Canada’s agriculture ministers agreed to remove the reference margin limit,” explained Ed. Ten Hove, AgriStability Product Coordinator at Agriculture Financial Services Corporation (AFSC).

“This change will have a significant impact for producers. We anticipate that around half of participants will benefit from the change over time and that their coverage could be increased by up to 30%.

Prior to this change, triggering a payment required a significant drop in a producer’s margin; however, with the removal of the reference margin limit, a 30% drop in the current year can trigger a payout. Sectors most likely to benefit from the removal of restrictions include livestock farmers who grow their own feed, organic and commercial crop and forage producers, members of the beekeeping industry and mixed farmers.

Other improvements to AgriStability

Private insurance payments are no longer included in the current year, but are now included in farm history. This increases the level of coverage, meaning producers are no longer penalized for proactively managing their price risk by using private insurance. This change applies to AFSC Livestock Price Insurance and Direct Hail Insurance.

“We have also taken steps to improve our customers’ overall experience with AgriStability,” said Ten Hove. “We have added online tools, including live chat on our website and AFSC Connect, allowing our customers to get the help they need. There is also an online form submission option that allows customers to submit their forms at their convenience.

“To get money back into producers’ pockets as quickly as possible, AFSC has been working to improve processing times.

Every farm is different, and one of the strengths of the AgriStability program is its individualized nature. If you would like to know how AgriStability could fit into your risk management plan, please contact our team members today and find out how your farm could benefit from AgriStability.

It only takes a few simple steps to enroll in AgriStability. For more information, please visit the New to AgriStability page, contact the Customer Service Center at 1.877.899.2372 or call your branch.

The application deadline for the 2022 program year is June 30.


Source link

Share.

Comments are closed.