The deadline for applications to the Agricultural Income Disaster Assistance program has been extended for some farms.
Farmers who expanded their operations by 15 percent or more between 1995 and 1997, the reference period for this year’s AIDA program, now have until Nov. 1 to apply for their 1998 AIDA.
Farms that were expanding had difficulty explaining their operations to AIDA officials, which prompted the extension.
When viewed on a cash accounting basis, incomes in expanded farms may have appeared to rise or remain constant even in the face of a declining commodity market.
This was due to increased income from expansion and/or retention of increased inventory necessary to run a larger farm.
Many producers use cash-based accounting practices that don’t take into account the effect of this inventory or additional income.
As producers began to fill out forms for AIDA, the problem became apparent and complaints mounted.
Modifications to the program apply only to producers in Saskatchewan, Manitoba, Nova Scotia and Newfoundland.
