If a producer’s program margin falls below 70 per cent of his/her reference margin due to any combination of production loss, adverse market conditions or increased costs, AgriStability will help offset the difference.
Calculation of Benefits
When SCIC has completed processing an AgriStability application, a Calculation of Benefits (COB) statement is produced detailing the producer’s income, expense and supplemental information for both the program years and reference years.
A one-page summary showing how SCIC determined the final calculation and the new reference margin is mailed to the producer when the file has been completed. The complete version of the COB (normally 10-12 pages) can be can be mailed upon request or accessed using AgConnect.
The interim benefit gives producers the option of receiving funds prior to the completion of their fiscal period in the program year. This can help support losses and cover costs.
The benefit is based on the estimated margin decline or loss for the year when compared to the reference margin (historical average). Just like final AgriStability benefits, a producer’s margin decline must be at least 30 per cent below their reference margin to access a payment.
To reduce the risk of overpayment, interim benefits are based on a portion of the estimated final benefit. Interim benefits are generally issued at 50 per cent of the estimated final benefit. Producers who submit an interim application must submit their final program forms by the required deadlines.