Agriculture ministers to move up the enrolment deadline for AgriStability to improve payment times to producers
Provinces could offer two different accounting methods for AgriStability by 2025.
However, one of the choices would put less money in Saskatchewan farmers’ pockets.
Canada’s agriculture ministers agreed last week that provinces could allow participants to use cash or accrual accounting. The idea is to boost participation in the business risk management program by allowing new entrants to use the simpler cash method.
“It could make a significant difference in terms of accessibility,” said federal minister Marie-Claude Bibeau. “We have tried it as a pilot project and it was working well in certain regions, so it’s additional flexibility to make it more timely and understandable.”
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Saskatchewan agriculture minister David Marit said he didn’t know which provinces had asked for the change but Saskatchewan would not be giving producers the option. He said it might make sense for some types of growers who operate on a cash basis because they sell all their crops in one year.
“I just look at my own farming operation,” he said. “I don’t know how it would work because you carry over grain, and you’re deferring.”
But more importantly, he said analysis showed it wouldn’t offer the same level of assistance as the accrual method does.
“It definitely wouldn’t be beneficial for the farmers and ranchers to go to that. It would be very complex and the preliminary numbers that I’ve seen is, it would probably reduce payouts by over 20 percent,” Marit said.
There would also be additional administration costs.
Provinces agreed to move up the enrolment deadline from Sept. 30 to June 30. Marit said that would cut at least three months off the process and participants could see payments a lot sooner.
The ministers committed to continuous improvement of all BRM programs. AgriStability could undergo other changes. Marit said he wouldn’t provide specific details but they are looking at ways to make sure livestock producers are better protected by that program.
Ministers discussed progress on a pilot to rebate AgriInsurance premiums for producers who adopt certain environmentally beneficial practices and reduce production risk. Ottawa will continue working with those interested in whole farm AgriInsurance, which could reduce premiums.
AgriRecovery assessment requests from British Columbia, Alberta and Saskatchewan are in the works, Bibeau said.
“They are being analyzed by a joint team, federal and provincial, right now,” she said. “We are going to do that as fast as we can, as we have done in previous climate disasters.”
Similarly, Bibeau said, “I am working on it” with regard to livestock tax deferrals.
Marit said he hoped to see action within the next couple of weeks. Alberta and Saskatchewan met ahead of the federal-provincial-territorial meeting in Fredericton and decided they want a harmonized AgriRecovery response because the livestock industries are so integrated.
The Canadian Cattle Association said it was encouraged by news that Ottawa would work with maritime provinces to establish livestock price insurance.
The ministers’ next annual meeting is planned for Whitehorse in July 2024.
