Industry Advisory - December 2016
In this issue:
- Use AgConnect
- What if the December 31 deadline is missed?
- December 31, 2016, is a Saturday. Will your offices accept fee payments and program forms after the weekend?
- Where to submit
- Partnerships – all parties need to submit their information
- File your farming income (loss)
- Gather your supplemental information for 2016
- 2016 Snowed-under acres
Saskatchewan Crop Insurance Corporation (SCIC) reminds producers there are a number of ways to meet this deadline. The preferred method of providing AgriStability information to SCIC is through AgConnect. This online tool for reviewing program information and for submitting program forms has been well received by producers, accountants and form preparers. AgConnect is appreciated for its ease of use and the ability to quickly send AgriStability information to SCIC, allowing processing to begin sooner. SCIC also continues to accept AgriStability Program forms through mail, fax or at any of the 21 Crop Insurance offices across the province.
To use AgConnect, producers and their contacts need to activate their account. If you have not activated your account, but would like to use AgConnect, contact the AgriStability Call Centre at 1-866-270-8450 and they can help you get started.
December 31 is a deadline date for two different program years within AgriStability. To ensure producers can access AgriStability benefits for the 2015 program year, all forms need to be submitted by this deadline. The initial deadline for sending program forms was September 30 and because this date has passed, a $500 per month penalty will be applied; however, if no benefit is calculated there will be no penalty applied.
December 31 is also the deadline to pay 2016 program year fees. Submitting program fees by the end of December is essential to participate in AgriStability for the 2016 program year. An Enrolment/Fee Notice was issued earlier in the year providing details about the fee amount and the deadline for payment. April 30 (or 30 days from the date on your Enrolment/Fee Notice, whichever is later), was the initial deadline for paying the program fee. A 20 per cent penalty will be added to the fee amount because the initial deadline was missed.
The final deadline for paying fees and submitting forms occurs on a Saturday and because this is outside of normal business hours SCIC will accept fee payments and form submissions until January 3, 2017, the first business day following the deadline.
Individual producers (sole proprietors) are reminded their income and expense (tax) information, provided on the T1163 form, must be submitted to the Canada Revenue Agency who will share this information with SCIC. For quicker processing of AgriStability applications, individual producers can also submit the income and expense information to SCIC using AgConnect. An individual’s supplemental information (inventories, receivables, payables, deferrals and purchased inputs) is to be submitted directly to SCIC and corporations and co-operatives are to continue to submit all AgriStability Program forms to SCIC. All forms can be submitted using AgConnect, by mail, fax or through any of the 21 customer service offices across the province.
Individuals in a partnership must each submit separate program applications reporting 100 per cent of the partnerships income, expenses, accounts payable, accounts receivable, inventory, deferrals and purchased inputs. Each partner is to identify their percentage share of the partnership. SCIC will calculate each partner’s share of any benefit based on their percentage of the operation.
SCIC cannot proceed with processing a file until all partners in the operation have submitted their program forms. Partners can submit their forms using AgConnect, mail, fax or through any of 21 Crop Insurance offices across the province.
As part of the requirements to be eligible for AgriStability program benefits, all participants need to submit their farming income (or loss) information to the Canada Revenue Agency (CRA). This is collected on the income tax return submitted to the CRA. To be eligible for 2015 program benefits, producers need to submit their 2015 farming income (or loss) information to the CRA by December 31, 2016.
The end of the year is a great time to gather information used for the AgriStability Program. For example, items like livestock numbers, bales on hand and grain inventory can be recorded at this time. By taking stock of the items needed to complete the supplemental information requirements for the AgriStability Program, producers may find it easier to enter the correct information when it comes time to complete their program forms, later in the year.
Individual producers (sole proprietors) or corporations operating with a calendar year end, need to report inventories, payables, receivables, deferrals and purchased inputs as of December 31, 2016. By taking a few moments, in late December or early January to record this data, a producer can save time by not having to search for the information later in the year when it comes time to complete the program forms.
AgConnect is another option for producers to record and retain this information. If a participant enters their 2016 supplemental information in AgConnect, it is saved and is ready to be used when it comes time to complete and submit information for the 2016 program. As long as the 2016 program forms have not been submitted to SCIC, participants can check, review and update their information at any time using AgConnect.
Production from acres that were snowed under and unable to be harvested before your 2016 year-end needs to be estimated and reported for AgriStability purposes. A Harvest Discount Allowance is applied to account for the additional costs of harvesting the crop at a later date. Use code 6826, Harvest Discount Allowance, in addition to the regular commodity codes to report these acres.
For example, if you have 800 acres of canola but 200 acres were snowed under at your year-end and you anticipate production of 125t you would report your canola and the Harvest Discount Allowance as follows: