Quick Estimator - AgriStability Benefit

2018-2022 program years fall under the Canadian Agricultural Partnership (CAP) agreement which ended March 31, 2023.

2023-2027 program years fall under the new Sustainable Canadian Agricultural Partnership (Sustainable CAP) which replaced the Canadian Agricultural Partnership.

Follow these steps to determine your reference margin:

Step 1: Calculate a production margin for each of your previous years (up to five) as follows:

A: Subtract your Allowable Expenses from your Allowable Income^Footnote1

B: If you file to the Canada Revenue Agency (CRA) on the cash basis, you must add the following change in value^Footnote2 calculations to amount you calculated in step 1:

• Change in crop inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price).
• Change in livestock inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price). If you have breeding herd, your change in your breeding herd inventory is calculated differently from your market livestock. Change in breeding herd inventory = (ending inventory minus starting inventory) multiplied by end of year price.
• Change in purchased inputs = end of year amount minus start of year amount.
• Change in deferred income and receivables = ending receivables and deferred income minus starting receivables and deferred income.
• Change in accounts payable = starting accounts payable minus ending accounts payable.

The above calculations can result in either a positive or negative value.

Production margin calculation example:

Step 2: Calculate an average of your production margins as follows:

• If you farmed in each of the previous five years, remove the highest and the lowest years, then average the remaining three years.
• If you did not farm in each of the previous 5 years, average the previous 3 years.
• If you did not farm in each of the previous 3 years, average the years you have available.

The average you calculate is your reference margin.

Follow these steps to calculate your program year margin:

Step 1: Subtract your Allowable Expenses from your Allowable Income^Footnote1

Step 2: If you file to the Canada Revenue Agency (CRA) on the cash basis, you must add the following change in value^Footnote2 calculations to the amount you calculated in step 1:

• Change in crop inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price).
• Change in livestock inventory = (ending inventory multiplied by end of year price) minus (starting inventory multiplied by start of year price). If you have breeding herd, your change in your breeding herd inventory is calculated differently from your market livestock. Change in breeding herd inventory = (ending inventory minus starting inventory) multiplied by end of year price.
• Change in purchased inputs = end of year amount minus start of year amount.
• Change in deferred income and receivables = ending receivables and deferred income minus starting receivables and deferred income.
• Change in accounts payable = starting accounts payable minus ending accounts payable.
  The above calculations can result in either a positive or negative value.

Program year calculation example:

Enter your partnership percentage using one of the following methods:

• Your percentage share of your partnership, if you entered your reference margin and program year margin based on 100% of your partnership.
• Your partnership percentage as 100%, if you entered your reference margin and program year margin based on your share of the partnership.

For example: You are in a 50/50 partnership with your spouse. The partnership has the following:

If you entered $150,000 for your reference margin and $60,000 for your program year margin, enter 50% in the partnership percentage box.

If you entered only your 50% share for your reference margin and program year margin, enter 100% in the partnership percentage box.

If you are using a Calculation of Benefits (COB) to complete the estimator the calculations on the COB were done using your partnership percentage. Therefore, enter 100% in the partnership percentage box.

Enter your whole farm^Footnote3 percentage using one of the following methods:

• Your percentage share of the whole farm, if you entered your reference margin and program year margin based on 100% of the whole farm.
• Your whole farm percentage as 100%, if you entered your reference margin and program year margin based on your share of the whole farm.

For example: You farm represents 50% of the whole farm. The whole farm has the following:

If you entered $150,000 for your reference margin and $60,000 for your program year margin, enter 50% in the whole farm percentage box.

If you entered only your 50% share for your reference margin and program year margin, enter 100% in the whole farm percentage box.