2018 AgriInvest Program – Corporation/Co-operative and Special Individual Harmonized Guide

2018 AgriStability and AgriInvest Program - Corporation/Co-operative and Special Individual Harmonized Form and Guide (PDF Version, 1.4 MB)

Revised - March 2019

Before you start

This guide will help you complete your form to participate in the AgriStability and AgriInvest programs if you are applying as a Corporation, Co-operative or Special Individual.

• AgriStability – a margin-based program that provides income support when you experience larger income losses
• AgriInvest – a self-managed producer-government savings account designed to help producers:
  • manage small income declines
  • make investments to manage risk and improve market income

Review this guide to make sure you fill out your form correctly. Providing correct information on your form helps us calculate your benefits accurately and prevents processing delays.

Don't forget to include your Participant Identification Number (PIN) on your form. Missing PINs is one of the top reasons for processing delays.

This guide gives you general information. See the Canadian Agricultural Partnership Agreement and related Program Guidelines for complete rules.

Is this guide for you?

Use this guide and form if you:

• want to participate in the AgriStability or AgriInvest program, or both for 2018
• farm in British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, or the Yukon
• farm as one of the following:
  • corporation
  • co-operative
  • communal organization
  • limited partnership applying as an entity
  • non-resident
  • Status Indian who is exempt from the Income Tax Act
  • Band farm
  • Trust
  • estate of a deceased participant (rights and things only)

Do not use this guide and form if you farm in

• Alberta
• Saskatchewan
• Ontario
• Quebec
• Prince Edward Island

Contact your provincial Administration at one of the numbers listed for a copy of the correct form and guide for your province.

AgriStability and AgriInvest contact information

Federal Administration contact information

Program Administration
PO Box 3200
Winnipeg, MB R3C 5R7
Toll-free telephone: 1-866-367-8506
Calling from outside Canada: 204-926-9650

Websites:

• www.agr.gc.ca/agristability
• www.agr.gc.ca/agriinvest

Provincial Administration contact information

For Alberta, contact:

Agriculture Financial Services Corporation
5718-56^th Avenue
Lacombe, AB T4L 1B1
Toll-free telephone: 1-877-899-2372
Fax: 403-782-8348
Toll-free fax: 1-855-700-2372
Email: AgriStability@AFSC.ca
Website: www.afsc.ca

For British Columbia, contact:

British Columbia Ministry of Agriculture AgriStability Administration
200-1690 Powick Road
Kelowna, BC V1X 7G5
Toll-free telephone: 1-877-343-2767
Toll-free fax: 1-877-605-8467
E-mail: Agristability@gov.bc.ca
Website: www.gov.bc.ca/agribusinessriskmanagement

For Ontario, contact:

Agricorp
1 Stone Road West
Box 3660, Station Central
Guelph, ON N1H 8M4
Toll-free telephone: 1-888-247-4999
Fax: 519-826-4334
Email: contact@agricorp.com
Website: www.agricorp.com

For Prince Edward Island, contact:

AgriStability Administration
Agricultural Insurance Corporation
7 Gerald MacCarville Drive
Kensington, PE

Mailing address:
PO Box 2000
Charlottetown, PE C1A 7N8
Toll-free telephone: 1-855-251-9695
Fax: 902-836-8912
Email: peiaic@gov.pe.ca
Website: www.princeedwardisland.ca

For Quebec, contact:

La Financière agricole du Québec
Toll-free telephone: 1-800-749-3646
Website: www.fadq.qc.ca

For Saskatchewan, contact:

Saskatchewan Crop Insurance Corporation (SCIC)
PO Box 3000
484 Prince William Drive
Melville, SK S0A 2P0
Toll-free telephone: 1-866-270-8450
Toll-free fax: 1-888-728-0440
Email: AgriStability@scic.gov.sk.ca
Website: www.saskcropinsurance.com

Where to mail your forms

Mail your forms to us at:

Program Administration
PO Box 3200
Winnipeg, MB R3C 5R7

How to send additional information for AgriStability and AgriInvest

Use the AgriStability and AgriInvest Additional Information and Adjustment Request form to send additional information for your AgriStability and AgriInvest form.

To get this form, go to www.agr.gc.ca/agristability or www.agr.gc.ca/agriinvest, or call 1–866–367–8506.

Send this form and any attachments to your Administration at the address provided on the form.

See "Adjustments" for more information.

AgriStability and AgriInvest form deadline

The deadline to send your 2018 AgriStability and AgriInvest form without penalty is September 30, 2019. For information on deadlines, see "Important deadlines".

Do you need more information?

Do you have questions about your participation in the programs?

For AgriStability, contact:

• the federal Administration if you farm in Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, or the Yukon
• your provincial Administration if you farm in British Columbia.

For AgriInvest, contact:

• the federal Administration except if you farm in Quebec.

See "AgriStability and AgriInvest contact information".

2018 Did you know?

AgriStability fee – electronic payment options

You can pay your AgriStability fee online or by telephone. Paying your fee electronically is a quick and secure way to make your fee payment. Contact your financial institution to see if it offers this service. Register with your financial institution and pay your fee to Agriculture and Agri-Food Canada (AAFC) AgriStability using your AgriStability Participant Identification Number (PIN) found on your Enrolment Notice.

Note: This feature is not available for producers in British Columbia.

Continuous filing for AgriStability

If you have a non-calendar year-end and you farm in Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, or the Yukon, you can apply for AgriStability shortly after your year-end. The forms are available on our website.

Canadian Agricultural Partnership: Business Risk Management Programs

The Growing Forward 2 Agreement (GF2) has been replaced with a new, five-year agricultural policy framework. The Canadian Agricultural Partnership launches on April 1, 2018 and introduces changes to the AgriStability and AgriInvest programs. For more information, go to www.agr.gc.ca.

Chapter 1: Your AgriStability and AgriInvest programs

You can choose to participate in AgriStability only, AgriInvest only, or both programs together, depending on the business risk management needs of your farm.

As a program participant, you are responsible for knowing program deadlines and understanding program policies. See the program handbooks or visit the program websites for more information.

AgriStability

AgriStability is a voluntary program that provides support when you experience larger income losses.

Are you eligible?

To participate in AgriStability for the 2018 program year, you must:

• file a Corporation/Co-operative and Special Individual form by December 31, 2019
• file a 2018 Canadian income tax return reporting allowable farming income (loss) by December 31, 2019 (except Status Indians farming on a reserve in Canada who are exempt from filing an income tax return)
• meet all program requirements by the deadlines

In addition, you must have:

• enrolled in the program and paid your fee by the deadline shown on your Enrolment Notice
• completed a minimum of six consecutive months of farming activity
• completed a production cycle (for example, growing and harvesting a crop or rearing livestock)

We may waive the requirements to complete six consecutive months of farming activity and a production cycle if you experienced a disaster.

How to participate

Complete and send in pages 1 to 6 of your Statement A by the deadline. See information on program deadlines.

AgriStability benefit calculations

AgriStability is based on margins.

Program margin

your allowable income minus your allowable expenses in the current year adjusted for changes in purchased inputs, receivables, payables, and inventory.

Reference margin

your average program margin for three of the past five years (the lowest and highest margins are dropped from the calculation).

Reference margin limit

your average allowable expenses for the three years used to calculate your reference margin.

Generally, you will receive an AgriStability payment when your program margin in the current year falls below 70% of your reference margin or your reference margin limit, whichever is lower. However, your reference margin limit cannot reduce your reference margin by more than 30%.

2018 Reference margins will be calculated as follows:

• If you participated in the program in any of the past four years, we will calculate your reference margin using the program margins for the previous five years. The highest and lowest program margins are dropped and the remaining three are averaged. This is called an Olympic average.
• If you did not participate in the program in the past four years, we will calculate your reference margin using an average of the three previous program margins. We will continue to calculate your reference margin using three previous program margins until you have five years of historical information on file.
• If you did not have farming activity in one or more of the five previous years, your reference margin will be calculated using an average of the three previous years. If you did not have farming activity in any of the three previous years, we will create margins for any missing years using industry averages.

For more information on margins and how we calculate AgriStability payments, see your program handbook or visit the website.

We will send you a Calculation of Program Benefits (COB) after we process your form, to show you how we calculated your benefit.

AgriStability program fee

You must pay an annual fee to participate in AgriStability. The fee is $3.15 for every $1,000.00 of contribution reference margin protected (based on coverage of 70% of your margin). The minimum fee is $45.00.

See your Enrolment Notice or the AgriStability Program Handbook for more information on the program fee and participation rules.

Administrative cost share (ACS)

You must pay $55.00 each year for Administration costs.

To participate in AgriStability, you must pay your fee and ACS by the deadline. You can:

• pay electronically through your financial institution (contact them to see if they offer this service) or
• send your cheque direct to your Administration

For more information contact your Administration.

Note: The electronic payment is not available for producers in British Columbia.

AgriInvest

AgriInvest is a voluntary program that is designed to help you:

• manage small income declines
• make investments to manage risk and improve market income

Each year you can deposit money into an AgriInvest account and receive matching government contributions. You can withdraw the money when you need it.

Are you eligible?

To participate in AgriInvest for the 2018 program year, you must:

• file a Corporation/Co-operative and Special Individual form by December 31, 2019
• file a 2018 Canadian income tax return reporting eligible farming income (loss) by December 31, 2019 (except Status Indians farming on a reserve in Canada who are exempt from filing an income tax return)
• meet all program requirements by the deadlines

How to participate

Complete and send pages 1 to 4 of your Statement A by the deadline. See information on program deadlines.

AgriInvest benefit calculations

AgriInvest deposits are based on a percentage of your Allowable Net Sales (ANS). Allowable Net Sales are your total allowable commodity sales and program payments minus your total allowable commodity purchases and repayment of program benefits.

Once we process your form, we will send you a Deposit Notice showing your deposit amount and the deadline to make it.

Chapter 2: Participating in AgriStability and AgriInvest

Important deadlines

April 30, 2018

• deadline to enrol for 2018 AgriStability

March 31, 2019

• deadline to submit your 2018 AgriStability Interim Payment form

September 30, 2019

• initial deadline to submit your 2018 AgriStability and AgriInvest form without a late filing penalty

December 31, 2019

• final deadline to submit your 2018 income tax return reporting farming income (loss) to Canada Revenue Agency to be eligible for AgriStability and AgriInvest program benefits
• final deadline to submit your 2018 AgriStability and AgriInvest form with a late filing penalty

If a deadline falls on a Saturday, Sunday, or statutory holiday, you have until the next business day to submit your form.

Adjustments

Use the AgriStability and AgriInvest Additional Information and Adjustment Request form to:

• send additional information about your farm to your Administration; or
• adjust your AgriStability and AgriInvest form information

If you farm in Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, or the Yukon, send this form and any attachments to the federal Administration.

If you farm in British Columbia, send this form and any attachments to:

• both the federal Administration and your provincial Administration for information affecting AgriInvest
• your provincial Administration only for information affecting AgriStability

We may require the Canada Revenue Agency to accept your adjustment before we will accept it for AgriStability and AgriInvest.

You can request changes to your mailing address:

• in writing with your signature; or
• over the phone, once we confirm your identity.

Personal information

For details on how we may share your information, see "Confidential information and participant consent" on page 6 of the Statement A.

The Privacy Act gives you the right to access your personal information held by the Government of Canada and to make any corrections to your information.

If you want to access or correct your personal information, contact the Access to Information and Privacy Coordinator at:

Access to Information and Privacy Office
Agriculture and Agri-Food Canada
Tower 7, 10^th floor, Room 130
1341 Baseline Road
Ottawa, ON K1A 0C5
Telephone: 613-773-1386
Fax: 613-773-1380

For general inquiries on privacy of personal information, contact the Office of the Privacy Commissioner (OPC) at:

Office of the Privacy Commissioner of Canada
30 Victoria Street
Gatineau QC K1A 1H3
Toll-free telephone: 1-800-282-1376
Telephone: 819-994-5444
TTY: 819-994-6591
Web site: www.priv.gc.ca

If you have a complaint under the Privacy Act, contact the Office of the Privacy Commissioner.

Chapter 3: Completing your form

General information

If you have one farming operation (a single farm or a partnership), complete a Statement A for your operation.

If you have more than one farming operation, complete a Statement B for each additional operation.

Each partner in a partnership must complete a form reporting 100% of the partnership income and expenses and provide their percentage share.

Participant information

Participant identification

Enter your name, address and telephone number.

Enter your fax number and email address (if applicable).

Enter your Participant Identification Number (PIN). You can find your PIN on your:

• AgriStability Enrolment Notice (EN) or
• AgriInvest Deposit Notice

If you cannot find your PIN, contact your Administration.

Enter your Social Insurance Number (SIN) if you are filing as an individual.

Enter your business number (BN) if you are:

• filing as a corporation
• a limited partnership applying as an entity

Trusts enter the account number assigned by the Canada Revenue Agency.

Enter your Trust number if filing as a communal organization.

Enter your Band number if you are a Band farm.

Enter your language of preference.

Contact person information

Complete this area if you would like someone else (such as your spouse, common-law partner, or accountant) to provide or ask for more information about your AgriStability and AgriInvest form. We will call your contact person if we have a question. We will send correspondence to both you and your contact person.

You must provide your contact person’s information each time you send in a form. Your contact person information does not carry forward from last year. If you leave this area blank, we will contact you directly if we have a question.

Tick the box if you have a contact person. Enter your contact person’s name, their business name (if applicable), address and their telephone and fax numbers.

Answer "Yes"if you want a copy of your Calculation of Program Benefits (COB) mailed to your contact person.

Your farming information

Province/Territory of main farmstead

Enter the province or territory where you earned most or all of your gross farming income over the previous five years.

See the program handbooks or visit the program websites for information on province of main farmstead and multi-jurisdiction farms.

Number of years farmed

Enter the number of years you have farmed.

Final year of farming

Answer "Yes" if 2018 was your final year of farming.

Production cycle

Answer "Yes" or "No" to show if you have completed a production cycle on at least one of the commodities you produced.

You must have completed a production cycle to be eligible for AgriStability. We may waive this condition if you experienced a disaster.

A production cycle includes at least one of the following:

• growing and harvesting a crop
• rearing livestock
• buying and selling livestock within a program year for feeding or finishing enterprises

You do not need to complete a production cycle to be eligible for AgriInvest.

Farm type

Select all that apply.

• Corporation - your farming business:
  • is an incorporated entity
  • is beneficially owned by its shareholders
  • reports farming income (loss) on a corporate tax return
• Co-operative - your farming business:
  • is an incorporated entity
  • is beneficially owned by its members
  • reports farming income (loss) on a corporate tax return
• Communal organization - your farming business:
  • carries on as a communal organization
  • reports farming income (loss) on a Trust tax return
• Member of a partnership – all or part of your farming business:
  • is carried on with other partners
  • the income and expenses are reported under the partnership's name
  • each member reports their allocation of the partnership's net income (loss) to the Canada Revenue Agency

• Limited partnership
  The partnership may apply as an entity or partners may apply as individuals. You cannot apply as both an entity and an individual.

  Note:
  Use the AgriStability and AgriInvest harmonized form for individuals to apply as an individual.

• Status Indian
  If you are a Status Indian farming on a reserve, provide your Band number.
• Band farm
  If your farming business is operating as a Status Indian Band farm, provide the Band number.
• Trust - the farming business:
  • is carried on by a trust holding property
  • reports farming income (loss) on a trust tax return

  In this case the trust, rather than the individual beneficiaries, participates in AgriStability and/or AgriInvest.

Deceased participant

If the participant is deceased, enter the date of death.

Prepare the form:

• in the name of the individual, noting "Estate" in the name and address area
• report the income/expenses on the individual's final 2018 tax return(s) or optional return, such as a return of rights and things

Attach a copy of the individual's death certificate and the probated will (or letters of Administration) to the AgriStability and AgriInvest Additional Information and Adjustment Request Form. Send it to the Administration at the same time you submit your form.

If the surviving spouse (or a spousal trust) continued the farming business, prepare an additional form:

• in the name of the surviving spouse or spousal trust
• reporting the income/expenses from the spouse's 2018 tax return

Federal public office holder or employee of Agriculture and Agri-Food Canada

If you or anyone involved in completing this form is a current or former federal public office holder or employee of AAFC, answer "Yes" to this question.

Answer "Yes" if at least one of the shareholders, members, or partners of your farming arrangement is a current or former federal public office holder or employee of AAFC.

Other farming information

Location of main farmstead

See the list of provincial jurisdictions (rural municipalities, counties, or districts) in the Regional code list.

You do not have to complete this section if you farm in Newfoundland and Labrador.

Combined operations

AgriStability is a whole farm program. That means we may combine your farm with another farm even if the operations report separately for income tax.

Combining ensures that AgriStability benefits are paid to farms that had decreases in income for reasons beyond their control, not because of business or tax planning decisions.

Generally, you should answer "Yes" to this question if your farm:

• is legally, financially, or operationally dependent on another farming operation
• all or some of the transactions between the farms are not at fair market value
• the farms share the same land or equipment

Individuals in a partnership do not need to be combined.

If your farm has a change in combined operations, enter the operation PIN and tick "Add" or "Remove".

For more information on combining, see your program handbook or visit the program website.

We need the information from all the combined farms before we can process your form.

Identification

In the following sections of the form, only provide information about your main farming operation (Operation #1) on the form. Complete a Statement B for each additional operation you have. Number each operation in the box at the top right-hand corner of each page.

Tick the "Single farm" or "Partnership" box.

Fiscal period

Report the year, month and day for the beginning and end of your farm's taxation year. Your farm’s 2018 fiscal period must end in the 2018 tax year.

Method of accounting

Use the same method of reporting (cash or accrual) for AgriStability and AgriInvest as you use for income tax.

Enter:

• code 1 for accrual method or
• code 2 for cash method

Transfer the income and expenses from your Statement of Farming Activities onto the form based on the instructions in this guide.

Was your farm involved in any of the following?

Tick the applicable box(es) if your farm was:

• a member of a feeder association
• in a crop share arrangement as either a landlord or a tenant

For your main farming operation (Operation #1), enter this information on your Statement A. For your other operations, enter this on Statement B.

Chapter 4: Calculating your farming income or loss

The Income, Expense and Statement of farming activities sections of the form are used to calculate your Allowable Net Sales for AgriInvest. Allowable Net Sales are allowable commodity sales and program payments, less allowable purchases and repayment of program benefits.

See the program handbook or visit the program website for more information on Allowable Net Sales and how we calculate benefits under AgriInvest.

We also use these sections to calculate the cash portion of your program year margin for AgriStability. See the program handbook or visit the program website for more information on how we calculate AgriStability margins.

Use the Commodity and the Program payment lists found at the back of this guide to report all of your 2018 income and expenses. Codes may change from year to year. Check the lists to make sure you are using the right code.

If you use the accrual method of accounting, report your sales and your changes in opening and closing commodity inventories separately using the line code for the commodity to report both entries.

The instructions in this chapter apply to both the Statement A and the Statement B.

Income

An agricultural commodity is a plant or an animal produced in a farming business.

Some commodities that are considered farming income for tax purposes are not allowable for AgriStability and AgriInvest including:

• aquaculture
• trees and seedlings sold for use in reforestation
• wood sales
• peat moss
• wild game reserves
• cannabis (except for industrial hemp)

Where permitted by law, hunt farms (not wild-game reserves), are eligible. For information on how to apply if you operate a hunt farm, contact your Administration.

If you produce both allowable and non-allowable commodities on your farm report the income from:

• non-allowable commodities on line 9600
• allowable commodities using the commodity codes (found at the back of this guide) on the Commodity sales and program payments section of this form. Report allowable commodity sales based on the point of sale conditions outlined below

Note
Sales and purchases of supply managed commodities are not allowable for AgriInvest. You must produce allowable commodities in addition to your supply managed commodities to participate in AgriInvest.

Report both your supply managed and non-supply managed commodities on the Commodity sales and program payment section of the form. Use the codes found at the back of this guide.

If you have questions about whether a commodity you produce is allowable for AgriStability and AgriInvest, contact your Administration.

Farming activities outside of Canada

If you produce a commodity in Canada, then ship it outside of the country for further production, the income and expenses generated once the commodity leaves Canada are non-allowable for AgriStability and AgriInvest.

When shipping commodities outside Canada for further production, include the fair market value of the commodity at the point it leaves Canada as allowable income using the code for the commodity.

If the commodity is returned to Canada for further production or sale, include the fair market value of the commodity at the point it enters Canada as an allowable purchase using the code for the commodity.

If you purchased livestock, you must have made an appreciable contribution to the growth or its increase in value in Canada for the income and expenses to be considered allowable. For AgriStability, commodities reported in the "Livestock inventory valuation" and the "Livestock productive capacity" sections of the form should reflect the allowable production that occurred in Canada only.

Point of sale

AgriInvest benefits are based on Allowable Net Sales, so you have to determine when the sale occurs. For AgriInvest, the point of sale is determined by the following conditions:

• you produce it on your farm
• it is separate and identifiable from other producer’s commodities
• you bear full risk for it
• you have a separate billing or accounting transaction that shows the sales value and any deductions from that value

The point of sale is when you:

• can no longer identify your commodity as your own
• are no longer at risk for the value of the commodity

If your commodity sales meet these point of sale conditions, report the code, name, and gross sale amount of each commodity on the form.

If you received a cheque for a commodity sale that is net of expenses, report the sale to include the full value of the commodity.

If your commodity sales include charges that were applied after the point of sale, adjust your sales to show the value of the commodity at the point of sale. Report any amounts charged after the point of sale on line 575 – Point of sale adjustments. This will ensure that we calculate your Allowable Net Sales correctly.

Payment in kind

A payment in kind occurs when you receive or give goods or services instead of money. For instance, to pay someone for a business expense, you may give them something you produced on your farm instead of money. When you do this, include the fair market value (FMV) of the goods or services in income. Use the appropriate code for the commodity. Deduct the same amount as an expense.

If you received a payment in kind for a product you would normally have sold, include the FMV of the product in income.

If you were a landlord renting out land involved in sharecropping, we consider any payment in kind you received to be rental income.

Gifts

Report the value of livestock or other items that you gave away but would normally have sold as a commodity sale.

Once you give the livestock or other items away, you cannot deduct any more costs for raising or maintaining them.

Crop Share

If you are a tenant in a crop share, you are eligible to apply for AgriStability and AgriInvest.

If you are a landlord in a crop share, you are eligible for AgriStability and AgriInvest only if the crop share arrangement is considered a joint venture.

For AgriStability, your crop share arrangement is considered a joint venture if your share of the allowable expenses reported to the Canada Revenue Agency is reasonable for your share of the related allowable income.

For AgriInvest, your crop share arrangement is considered a joint venture if your share of the allowable purchases reported to the Canada Revenue Agency is reasonable for your share of the related allowable income.

Eligible tenants and landlords report only their individual share of the allowable income and expenses.

Commodity futures

You can report income from commodity futures as a commodity sale for AgriStability and AgriInvest purposes if the income is:

• from a primary agricultural product that you produced on your farm
• considered a hedging strategy, not speculation

Report the gross income earned from the futures transaction as a commodity sale using the code for the commodity. Report related purchases as a commodity purchase using the code for the commodity.

Report income from futures transactions involving commodities that you did not produce or that were not considered a hedging strategy as other farming income on line 9600. Report losses as a non-allowable expense on line 9896.

Cash advances

If you received a cash advance for crops that someone stores in your name, do not report the advance as income. Cash advances, administered under the Agricultural Marketing Programs Act, are treated as a loan.

Tree production

Allowable tree production

Trees must be produced through farming activity to be allowable for AgriStability and AgriInvest.

Farming activity for trees includes:

• planting
• nurturing
• harvesting

Operations must:

• pay significant attention to managing the growth, health, and quality of the trees
• generate normal input and harvesting costs

Allowable tree production includes regular seeding and harvesting of:

• trees
• shrubs
• herbaceous perennials
• annuals, including ornamental, fruit, and Christmas trees

Report income, expenses, and inventory of allowable tree production using the code for the commodity.

Non-allowable tree production

Trees produced or harvested for the following reasons are non-allowable for AgriStability and AgriInvest:

• firewood
• construction material
• poles or posts
• fibre, pulp and paper
• trees and seedlings destined for use in reforestation

Report income from these non-allowable items listed above on line 9600 - Other (specify).

Woodlots

If you operated or regularly harvested a woodlot, use commodity code 259 to report the sale of trees, lumber, logs, poles, or firewood in your income. This income is non-allowable for AgriStability and AgriInvest.

Livestock

Include any insurance payments received for losses of livestock as a commodity sale using the livestock commodity code.

Custom feedlot operators

For AgriStability, income and expenses may be allowable if you:

• grew (or purchased) the feed used in your custom feeding operation
• made an appreciable contribution to the growth and maturity of the livestock

For AgriInvest, income you earned from custom feeding is allowable based on the value of allowable commodities you grew (or purchased) and fed to custom fed livestock.

If your custom feeding invoices are itemized, report:

• allowable feed and protein supplements as a prepared feed sale for commodity sales using code 243
• other charges itemized for commodity sales using code 576

If your custom feeding invoices are not itemized report:

• amount invoiced as a prepared feed sale for commodity sales using code 246. We will use 70% of this amount to calculate your Allowable Net Sales

Pregnant mare urine contract cancellation income

Income you received from the buy-out of pregnant mare urine (PMU) contracts is allowable if paid in lieu of the income you would have received for the sale of the product under the contract. Penalty fees and other compensation are non-allowable.

Use code 322 to report amounts received for your Collection Agreement, Herd and Health payments, West Nile Reimbursement, and Equine Placement Fund.

Use code 9600 to report amounts received for the Business Planning Subsidy and capital costs.

Canadian Food Inspection Agency - Destroying livestock

If you deferred income you received for destroying animals under the Health of Animals Act from your 2018 fiscal period for income tax, report:

• income as a commodity sale using a Canadian Food Inspection Agency (CFIA) program payment code
• amount you deferred as a commodity purchase using the appropriate code from the PDR/PFR/CFIA Deferred Livestock Codes chart

When reporting the income that you deferred in a previous year, report the amount as a commodity sale using the appropriate code from the PDR/PFR/CFIA Deferred Livestock Codes chart.

See an explanation on how to report your CFIA payment using the CFIA codes.

Prescribed drought region (PDR) and Prescribed flood region (PFR)

If you farmed in a prescribed drought or flood region and you deferred income from the sale of your breeding animals during your 2018 fiscal period, report:

• income as a commodity sale using the code for the commodity
• amount you deferred as a commodity purchase using the appropriate code from the list below

When reporting the income that you deferred in a previous year, report the amount as a commodity sale using the appropriate code.

PDR/PFR/CFIA deferred livestock codes chart

Deferred bovine cattle	150
Deferred bison	151
Deferred goat	152
Deferred sheep	153
Deferred deer	154
Deferred elk	155
Deferred horse for PMU sales	156
Deferred other breeding animals	157

Income earned from the use of commodities

Include income earned from the use of commodities with commodity sales, except for pollination services. For example, report income from stud fees with horse sales. However, report income from pollination services using code 376.

Private insurance proceeds for allowable commodities

Use code 661 to report proceeds you received from private insurance for revenue losses for allowable commodities.

For example, report proceeds you received from Global Ag Risk for production losses of allowable commodities using this code.

Insurance proceeds for allowable expense items

Use code 406 to report insurance proceeds you received for allowable expense items such as fertilizers, chemicals, fuel, or twine.

Income from Program payments

For AgriInvest, only payments received for the loss of an allowable commodity are included in your Allowable Net Sales. For example:

• AgriInsurance/(crop or production insurance), hail insurance
• private insurance for allowable commodities
• wildlife damage compensation

For AgriStability, only payments that compensate you for losses covered under AgriStability are included in your program year margin.

Use the codes found in Program payment list A or B to report your program payment. Report the name, code, and the amount under Commodity sales and program payments.

If you reported your program payments net of expenses (for example, income minus expenses), report the full amount of the payment as income and report the deduction as an expense.

Report payments from programs that are not listed in "Program payment list A or B", on line 9540 - Other program payments.

Canadian Food Inspection Agency

Report the portion of CFIA payments you received for the loss of an allowable commodity using code 663 – CFIA payment for allowable commodities.

Report the portion of CFIA payments that you received for the loss of a commodity that is non-allowable for AgriStability or AgriInvest using code 587 – CFIA payment for non-allowable commodities. For example, a payment you received for the loss of trees destined for use in reforestation.

Report the portion of CFIA payments that you received for the loss of a supply managed commodity using code 664 – CFIA payment for supply managed commodities.

Report the portion of CFIA payments that you received for costs not directly related to a commodity loss using code 665 – CFIA payment for other amounts. For example, a payment you received for the cost of carcass disposal.

Payments from the AgriInvest and AgriStability programs

Do not report any government contributions you have withdrawn from Fund 2 of your AgriInvest account on this form.

Report payments from AgriStability as Business risk management (BRM) and disaster assistance payments on line 9544.

Inventory adjustments

If you are reporting on the cash basis, do not include current year inventory adjustments (mandatory or optional) as income. Report them on lines 9941 and 9942 on page 4 of the Statement A.

Other farming income

Line 9540 – Other program payments

Report any payments you received from programs that are not listed on Program payment list A or B found at the back of this guide, or are not listed under line 9544 below.

If you received an overpayment from any of these programs, report the amounts you repaid on line 9896 - Other (specify).

Do not include AgriInsurance (crop or production insurance) on this line.

Line 9544 – Business risk management and disaster assistance payments

Report any payments you received from the following federal or provincial Business risk management (BRM) and disaster assistance programs:

• AgriStability and Canadian Agricultural Income Stabilization (CAIS) programs, including Interim or Targeted Advance Payments
• Whole Farm Insurance Pilot (WFIP) program in British Columbia

If you received an overpayment from any of these programs, report the amounts you repaid on line 9896 - Other (specify).

Do not include AgriInsurance (crop or production insurance) on this line

Line 9574 – Resales, rebates, GST/HST for allowable expenses

Report the total resales and rebates for allowable expenses, including GST/HST rebates, unless you already reduced your expenses by these amounts.

Line 9575 – Resales, rebates, GST/HST for non-allowable expenses, recapture of capital cost allowance

Report the total resales and rebates for non-allowable expenses, including GST/HST rebates, unless you already reduced your expenses by these amounts.

Line 9601 – Agricultural contract work

Report your total incidental farming income from activities such as:

• custom or contract work
• harvesting
• combining
• crop dusting or spraying
• seeding
• drying
• packing
• cleaning, and treating seeds

To report income you received from renting farm machinery, see line 9614 – Machine rentals.

If you are a custom feedlot operator, do not report your income on this line. See instructions on reporting your custom feeding income.

Line 9605 – Patronage dividends

Report your total patronage dividends (other than those for consumer goods or services) you received during your 2018 fiscal period.

Line 9607 – Interest

Report any interest you reported as farming business income for tax.

Line 9610 – Gravel

Report the amount you received from the sale of soil, sand, gravel, or stone.

Line 9611 – Trucking (farm-related only)

Report amounts you received for trucking related to your farming business.

Line 9612 – Resales of commodities purchased

Report the sales of commodities that you did not produce in your farming operation. These are commodities that you bought for resale.

Report the corresponding purchases you made in this fiscal period on line 9827 – Purchase of commodities resold.

Line 9613 – Leases (gas, oil well, surface, etc.)

Report payments you received for leasing your farmland for petroleum or natural gas exploration.

Line 9614 – Machine rentals

Report amounts you received from renting your farm machinery.

Line 9600 – Other (specify)

Report the total amount of all other types of farming income not listed on the form. Then list the items on the blank lines provided under it.

Report all non-allowable farming income. Non-allowable income includes, but is not limited to:

• aquaculture
• trees and seedlings sold for use in reforestation
• wood sales
• peat moss
• income generated from wild game reserves

Income from cannabis (except for industrial hemp) is also non-allowable but is reported using code 382.

Summary of income

From the "Income" section of the form, report totals A and B from the last lines of the two columns in the "Summary of income" table. Add the totals for your gross farming income.

Expenses

For AgriStability, there are two types of expenses:

• allowable expenses
• non-allowable expenses

Allowable expenses are the operating or input expenses you paid that directly relate to producing your commodities.

Non-allowable expenses are costs not directly related to producing your commodities. These include amounts paid for interest and capital-related expenses.

For AgriInvest, only allowable commodity purchases are used to calculate your Allowable Net Sales.

Commodity purchases

Report the following as commodity purchases:

• feed
• seed
• plants
• transplants
• livestock
• marketable products

If you are an apple producer replacing damaged or dead trees, report apple tree purchases using the code for apples. If you are buying trees to expand an orchard, report this purchase as a capital expense.

Include expenses you incurred from the use of commodities with the commodity purchases, except for pollination fees. For example, report stud fees with horse purchases. However, report pollination fees using code 376.

If you made a payment in kind for a commodity purchase, report the value of the payment as a commodity purchase. See "Payment in kind" for more information.

If you are a tenant in a crop share, only include your share of the crop in your income and expenses.

Livestock owners and custom feedlot operators with prepared feed purchases

If the ingredients on your purchase invoices of prepared feed and protein supplements are listed separately, report:

• allowable commodities (such as grains, forage, and oilseeds) and protein supplements using code 046
• the remaining expenses (such as minerals and salts) using code 570

If the ingredients on your purchase invoices of prepared feed and protein supplements are not listed separately, report:

• your total purchase using code 571 (we will use 65% of this amount to calculate your Allowable Net Sales)

Livestock owners with custom feeding expenses

If the ingredients on your purchase invoices are listed separately, report:

• allowable commodities (such as grains, forage, and oilseeds) and protein supplements using code 577
• the remaining expenses (such as minerals and salts) using code 572

If the ingredients on your purchase invoices are not listed separately, report:

• your total purchase using code 573 (we will use 70% of this amount to calculate your Allowable Net Sales)

Ranch fur operators with prepared feed purchases

If the ingredients on your purchase invoices of prepared feed and protein supplements are listed separately, report:

• allowable commodities and protein supplements using code 046
• report the remaining expenses using code 310

If the ingredients on your purchase invoices of prepared feed and protein supplements are not listed separately, report:

• your total purchase using code 574 (we will use 20% of this amount to calculate your Allowable Net Sales)

Livestock insurance premiums

Report premiums you paid for private livestock insurance using line 9953 – Private insurance premiums for allowable commodities.

Repayment of program benefits

Report any amounts you repaid to any of the programs listed in "Program payment list A and B" as a purchase using the code for the program.

AgriStability program – Allowable expenses

Line 9661 – Containers and twine

Report the amount you paid for material to package, contain, or ship your farm produce or products.

If you operated a nursery or greenhouse, report the cost of your containers and pots for the plants you sold.

Line 9662 – Fertilizers and soil supplements

Report the amount you paid for fertilizers and lime you used in your farming business.

If you used soil supplements or other growth media, report the amounts you paid for them here. Examples of soil supplements include mulch, sawdust, and weedmats.

Report expenses for water you purchased to produce your commodity (crop or livestock) if it was not included in your municipal taxes.

Line 9663 – Pesticides and chemical treatments

Report the amount you paid for:

• herbicides
• insecticides
• rodenticides
• fungicides

Insecticides include:

• chemicals for pest control
• any predators or parasites used for pest control

Report the amount you paid for chemicals used to treat water, manure, or slurry, and to disinfect equipment and facilities.

Report seed treatment expenses on this line if the treatment is listed separately from the seed purchase on your original invoice. If not listed separately, include the treatment as part of the commodity purchase.

Line 9665 – Insurance premiums (AgriInsurance/crop or production insurance)

Report the premiums you paid for AgriInsurance, including premiums for hail insurance.

See line code 9804 – Other insurance premiums to report your premiums for private, business-related, or motor vehicle insurance.

Line 9713 – Veterinary fees, medicine, and breeding fees

Report the amount you paid for medicine for your animals, and for veterinary and breeding fees.

Examples of such fees include the cost of:

• artificial insemination
• embryo transplants
• disease testing
• castration

Report the costs of disposable veterinary supplies here if used for your farming business.

Line 9714 – Minerals and salts

Report purchases of minerals, salts, vitamins, and premixes (which are mainly minerals and vitamins).

If you have purchased feed expenses, see Expenses for information on the codes you use to report these amounts.

Line 9764 – Machinery (gasoline, diesel fuel, oil)

Report the amount you paid for fuel and lubricants for your machinery used in your farming operation.

Line 9799 – Electricity

Report the electricity costs related to your farming business.

Line 9801 – Freight and shipping

Report the amount you paid for shipping farm inputs to your operating site and shipping farm produce to market.

Report amounts you paid for carcass disposal on this line.

If you were trucking for someone else, the trucking expenses are non-allowable for AgriStability. Report these costs on line 9798 – Agricultural contract work.

See line 575 – Point of sale adjustments to report freight and shipping that was charged after the point of sale.

Line 9802 – Heating fuel

Report the amount you paid for natural gas, coal, and oil to heat farm buildings. Report your expenses for fuel used for curing tobacco, crop drying, or greenhouses.

Line 9815 – Arm's length salaries

Report the amount of gross wages you paid to your employees, including the cost of board for hired help.

See line 9816 – Non-arm's length salaries to report salaries paid to related persons.

Related persons are:

• individuals connected by blood relationship, marriage or common-law partnership, or adoption
• A corporation and
  • an individual, group of persons, or entity that controls the corporation
  • an individual, group of persons, or entity of a related group that controls the corporation
  • any individual related to a person described above

Include your share of Canada Pension Plan or Quebec Pension Plan contributions and Employment Insurance premiums for arm's length salaries.

Line 9822 – Storage/drying

Report the amount you paid for storing and drying commodities.

For example, include:

• amounts paid for storage and drying services
• air treatment expenses
• purchase of germination inhibitors and other preservative agents

Report electricity and heating fuel costs incurred in the storage and drying of commodities on lines 9799 – Electricity, and 9802 – Heating fuel.

Line 9836 – Commissions and levies

Report the amount you paid in commissions and levies incurred in the sale, purchase, or marketing of commodities. Also include levies paid to marketing boards, except those due to penalties or fines you incurred.

Do not include commissions paid to salespeople you contracted to market your product.

If you market fruit or vegetables through a co-op, report your pack-and-sell expenses here, except pack-and-sell incurred after the point of sale. Report these amounts on line 575 – Point of sale adjustments.

Line 9953 – Private insurance premiums for allowable commodities

Report your private insurance premiums paid for allowable commodities such as livestock.

Report premiums for hail insurance on line 9665 – Insurance premiums (AgriInsurance/crop or production insurance).

Do not include any premium for:

• private insurance for non-allowable commodities or items
• business-related insurance
• motor vehicle insurance

See line 9804 – Other insurance premiums to report these amounts.

AgriStability program – Non allowable expenses

Line 9760 – Machinery (repairs, licences, insurance)

Report the amount you paid for repairs, licence fees, and insurance premiums for your machinery.

Line 9765 – Machinery lease/rental

Report the amount you paid for leasing machinery used to earn your farming income.

If you lease a passenger vehicle, see line 9829 – Motor vehicle interest and leasing costs.

Line 9792 – Advertising and promotion costs

Report the amount you paid for advertising and promoting your farm products.

If you market fruit or vegetables through a co-op see line 9836 – Commissions and levies for information on how to report your pack-and-sell expenses.

Line 9795 – Building and fence repairs

Report the amount you paid for repairs to fences and all buildings you used for farming, except your farmhouse.

Line 9796 – Land clearing and draining

Report the amount you paid for the following:

• clearing the land of brush, trees, roots, stones
• first ploughing of the land for farm use
• building an unpaved road
• installing land drainage

Line 9798 – Agricultural contract work

Report the amount you paid for custom and contract work, other than custom feeding. For example, report amounts you paid if you had a contract with someone who:

• cleaned, sorted, graded, and sprayed the eggs your hens produced
• aged the cheese you produced
• did your harvesting, combining, crop dusting, or contract seed cleaning

If you are a custom feedlot operator, see the instructions on reporting your custom feeding expenses.

For AgriStability, agricultural contract work is a non-allowable expense. However, if the charges on your invoice are listed, report the amounts that are allowable expenses for AgriStability on their specific line code.

For example, your invoice lists the costs charged for chemical, fuel and salaries. Report these amounts on lines:

• 9663 – Pesticides and chemical treatments
• 9764 – Machinery (gasoline, diesel fuel, oil)
• 9815 – Arm's length salaries

Report the remaining non-allowable amounts on line 9798.

Line 9804 – Other insurance premiums

Report the amount of business-related insurance premiums you paid to insure your farm buildings, farm equipment (excluding machinery and motor vehicles), and business interruption.

Report your premiums for hail insurance or livestock, on line 9665 – Insurance premiums (crop or production) or line 9953 – Private insurance for allowable commodities.

Line 9805 – Interest (real estate, mortgage, other)

Report the amount of interest you paid on money you borrowed to earn farming income, such as interest on a loan you used to buy a baler.

Report interest on money you borrowed to buy a passenger vehicle used in your farming business on line 9829 – Motor vehicle interest and leasing costs.

Line 9807 – Memberships/subscription fees

Report the amount of annual dues or fees you paid to keep your membership in a trade or commercial farming association.

You can also deduct fees for subscriptions to farming publications you use in your farming business.

Report the amounts you paid for your AgriStability Administrative Cost Share (ACS) and your program fee.

Line 9808 – Office expenses

Report the amount of office expenses, such as:

• stationery
• invoices
• receipt and accounting books
• other office supplies

Line 9809 – Legal and accounting fees

Report any legal fees you paid for your farming business.

Report any accounting or bookkeeping fees you paid to have someone maintain your books and records, and to prepare your income tax or GST/HST returns.

Line 9810 – Property taxes

Report the amount of land, municipal, and realty taxes you paid for property used in your farming business.

Line 9811 – Rent (land, buildings, pastures)

Report the amount of rent you paid for land, buildings, and pastures you used for your farming business.

If you farmed in a crop share and paid your landlord a share of the crop, only include your share of the crop in your income and expenses.

Line 9816 – Non-arm's length salaries

Report the amount of gross wages you paid to related persons. For a definition of related persons, see line 9815 – Arm's length salaries.

Line 9819 – Motor vehicle expenses

Report the amount of motor vehicle expenses you paid for farming business use.

Line 9820 – Small tools

Report the amount of expenses you paid for small tools.

Line 9821 – Soil testing

Report the amount of expenses you paid for testing soil samples.

Line 9823 – Licences/permits

Report the amount of annual licence and permit fees you paid to run your business.

Line 9824 – Telephone

Report your telephone expenses related to your farming business.

Line 9825 – Quota rental

Report your expenses for quota rentals in the fiscal period.

Line 9826 – Gravel

Report the expenses you paid for gravel used to earn farming income in the fiscal period.

Line 9827 – Purchases of commodities resold

Report purchases of commodities that you bought for resale.

Line 9829 – Motor vehicle interest and leasing costs

Report the leasing costs or the interest on the money you borrowed for your motor vehicle.

Line 9936 – Capital Cost Allowance

Report the amount of capital cost allowance (CCA) you calculate on all the eligible assets used in your farming operation.

Line 9937 – Mandatory inventory adjustment – prior year

Report your prior year mandatory inventory adjustments.

If you use accrual accounting, do not complete this line.

Line 9938 – Optional inventory adjustment – prior year

Report your prior year optional inventory adjustments.

If you use accrual accounting, do not complete this line.

Line 9896 – Other (specify)

The expenses listed on the form are only the most common ones. If you have other farming expenses, non-allowable for AgriStability that are not listed on the form, enter the total amount on line 9896. Then list the items on the blank lines provided under this line.

Report any overpayments which you repaid for any of the programs identified on lines 9540 and 9544.

Report losses from futures transactions involving commodities which you did not produce or were not considered a hedging strategy on this line.

Summary of expenses

Copy totals C, D, and E from the bottom of each of the three tables in the "Expenses" section of the form. Add the totals for your total expenses.

Statement of farming activities

The information on this section of the form will be used to verify that the information reported on your AgriStability and AgriInvest form is the same as what you reported to the Canada Revenue Agency.

If you farm on a reserve and are not required to file an income tax return, you only need to fill out the Shareholder/Member and/or Partnership Information section(s) if they apply to you.

Line 9959 – Gross farming income

Report the gross farming income.

Line 9968 – Total farming expenses

Report the total farming expenses.

Line 9969 – Net farming income (loss) before adjustments

Report the net farming income (loss) before adjustments.

Line 9941 – Optional inventory adjustment - current year

Report the amount of current year optional inventory adjustments.

If you use accrual accounting, do not complete this line.

Line 9942 – Mandatory inventory adjustment - current year

Report the amount of current year mandatory inventory adjustments.

If you use accrual accounting, do not complete this line.

Line 9944 – Net farming income (loss) after adjustments

Report the net income (loss) after adjustments.

Line 9946 – Net farming income (loss)

Report the net farming income (loss).

Shareholder/Member information

Corporations, use your Statement of Share Capital to complete the chart.

Shareholder/Member name

Report the name of the shareholder/member or group of related shareholders/members who have controlling interest in the corporation.

When a corporation is a shareholder, report the names of the participating shareholders or groups of related shareholders that have controlling interest in that corporation. Attach a separate sheet if necessary.

AgriStability and AgriInvest Participant Identification Number (PIN)

Report the PIN, if available, for each shareholder/member.

Partnership information

Complete this chart only if the operation is a partnership. Enter the information for all partners on the table.

Partnership name

Report the partnership's name.

Your percentage share of partnership

Enter your percentage share of the partnership.

AgriStability and AgriInvest Participant Identification Number

Report the Participant Identification Number (PIN), if available, for each partner.

Partners' names

Report the first and last name of each individual partner. If a corporation or co-operative is a partner, report the name of the corporation or co-operative.

If another partnership is a partner, report the names of the partners in that partnership.

Percentage (%) Share

Report each partner's percentage share based on the allocation of partnership net income/loss reported with the Canada Revenue Agency (excluding Status Indians) unless:

• interest has been paid on partner's capital
• salaries have been paid to partners

In these cases, exclude these amounts in determining the partner's percentage.

If another partnership is a partner, determine the beneficial ownership of each individual partner.

Chapter 5: Inventories, purchased inputs, deferrals, receivables and payables

Complete these sections if you want to participate in AgriStability.

For AgriStability participants

In addition to completing pages 1-4, you must complete page 5 of the form to participate in AgriStability.

Complete only the areas that apply to your farming operation. If you have additional farming operations, also complete a Statement B.

If you file your income tax on the accrual basis, you do not need to complete the following parts of this form:

• the End of year price for the Crop inventory valuation and productive capacity and Livestock inventory valuation sections
• the Purchased inputs, Deferred income and receivables and Account payable sections

Read the instructions in each section for further details.

If there are not enough lines on the form to provide all of your information, attach a second copy of the page with the rest of the information on it.

AgriStability program codes

You will need to refer to the following code lists to complete this page. The code lists can change from year to year so it is important to check each year for the right code.

• Inventory code list: Includes the codes and descriptions for commodities to complete Crop inventory valuation and productive capacity and Livestock inventory valuation sections.
• Units of Measurement Code List: Includes the unit of measurement codes (for example tonnes or bushels) to report your Crop inventory valuation and productive capacity section.
• Expense Code List: Includes the codes and descriptions of the allowable expenses to complete the Purchased inputs and Accounts payable sections.
• Commodity list: Includes codes and descriptions of commodities to complete the Purchased inputs, Deferred income and receivables and Accounts payable sections.
• Program Payment Lists: Includes codes and descriptions of program payments to complete the Deferred income and receivables section.
• Productive capacity list: Includes codes and units used to report "other" commodities that are not listed in the Livestock productive capacity section.

Commodities with published prices

You are not required to provide end of year prices in Crop inventory valuation and productive capacity and Livestock inventory valuation sections of the form if the commodities you report are marked with an "X" on the "Inventory code list" for your province or territory.

We develop prices for commodities marked with an "X" using information from:

• Statistics Canada
• Agriculture and Agri-Food Canada (AAFC)
• provincial agriculture departments
• commodity organizations

The prices are published in the AgriStability Price List. We use these prices to value your inventory. You can request a copy of this list from us or find it on the AgriStability website.

If you do not feel these prices are appropriate for your farm, you may use your own prices if you can show that your:

• commodity is very different from the commodity listed
• method of marketing the commodity was very different from the general marketing practice

In either of these cases, you may use end of year prices based on sales or purchases of the specific commodity:

• in your name
• occurring within 30 days either before or after your fiscal year-end

To use your own prices, send copies of receipts or documents that support these prices. Send this information to your Administration at the same time you send your form, or within your adjustment time frame. See "Adjustments" for further information. For adjustments rules, see the program handbook or visit the program website.

We will determine if the prices are reasonable for your commodity.

Commodities with unpublished prices

You must provide end of year prices for the crop and livestock inventories that are shaded on the "Inventory code list" for your province or territory.

Base your prices on:

• estimated market prices at year-end
• sales or purchases within 12 months before or after your fiscal year-end

You are not required to provide documentation to support these prices. However, if you do, it will increase the chances of your price being accepted.

Supporting documentation includes:

• receipts from sales or purchases of the commodity
• commodity-specific price information from appropriate commodity marketing agencies

Send your supporting documentation at the same time you send your form or within your adjustment time frame. See "Adjustments" for further information. For adjustments rules, see the program handbook or visit the program website.

We will determine if the prices are reasonable for your commodity.

Has the productive capacity of this operation decreased during the program year due to disaster circumstances?

Check the "Yes" box if the productive capacity of your farm decreased due to disaster circumstances during the program year. A decrease in productive capacity means a decrease in the overall amount you produced.

For example, check "Yes" if CFIA ordered your livestock to be destroyed due to disease or if you could not seed or harvest some or all of your land because of extreme wet or dry conditions.

AgriInsurance (crop or production insurance)

Provide your AgriInsurance (crop or production insurance) contract or identification numbers that relate to the crops listed in the Crop inventory valuation and productive capacity section.

Crop inventory valuation and productive capacity

Complete this section if you:

• produced or seeded crops or forage with the expectation of harvest during the program year
• had unseedable acres in the program year (see Unseedable acres)
• carried over crops or forage in your inventories from your previous fiscal period

If you file your income tax on the accrual basis, you do not have to complete End of year price $ column.

This part of the form is used to:

• measure the change in your crop and forage inventory from the ending amount you reported in 2017 to the ending amount in the 2018 program year
• show that you have completed a production cycle
• adjust your reference margins if you had a structural change

To help you complete this section, refer to your:

• crop production records
• sales and feeding records
• crop insurance measurements
• inventory records

How to complete the columns

Code and Crop/Grade

Use the "Inventory code list" to report all commodities by code and description that you:

• produced
• had on hand at the end of your fiscal period or
• planned to produce but could not because your land was too wet or too dry

Grain producers, report each grade or variety of crop separately. For example, report #1 CWRS wheat separately from #2 CWRS wheat. Leave the code blank if the commodity is not listed in the "Inventory code list".

Units

Use the "Units of measurement code list" to report the code for the unit of measurement used for each commodity you report, not the dollar value. Use the same unit of measurement for all entries in a single row.

Acres

Report the number of acres used to produce each crop. Report only those acres that produced, or should have produced a crop during your 2018 fiscal period.

If you had unseedable acres (too wet or too dry), report them in the "Unseedable acres" column

Report all summerfallow, pasture and wasteland acres on the designated lines.

For commodities not measured in acres, use the unit of measurement that is standard for the commodity.

Unseedable acres

Report the acres you planned to seed for each commodity that should have produced a crop but did not because the land was too wet or too dry.

If you planned to produce multi-stage crops, report the unseedable acres for each multi-stage commodity you planned to seed in the program year.

Quantity produced

Report the quantity of the crop you produced in the program year.

Ending inventory

Report the quantity of crop you had at the end of your fiscal period.

End of year price $

Provide an end of year price to value crops that are shaded on the "Inventory code list" for your province or territory.

Leave the End of year price $ blank if your commodity is marked with an "X" on the "Inventory code list", unless you meet the conditions to use your own price. See "Commodities with published prices" for more information.

Crops or forage carried over from 2017 but no longer seeded or produced in 2018

If you had inventory at the end of your 2017 fiscal period for a commodity you did not produce in 2018:

• complete the "Code", "Crop/Grade", and "Units" columns
• enter "0" in the "Acres" and "Quantity produced" columns
• report ending inventory in "Ending inventory" column if you are carrying the inventory to your 2019 fiscal period

Landlords/tenants

If you are a tenant in a crop share, or a landlord in a joint venture crop share, report your share of the acres and quantities.

Commodity pools

If you sold commodities into a pool, report the full value of your commodity even if you only received a portion of the payment in your 2018 fiscal period.

Use code 4020 – Expected grains and oilseeds pool payments to report any payments you received or expect to receive for your commodity after your 2018 fiscal year-end as a receivable in the "Deferred income and receivables" section of the form.

Perishable horticulture crops

A perishable horticulture or floriculture crop:

• spoils or decays easily
• cannot be stored for periods longer than 10 months, such as potatoes, apples or carrots

Report only the "Quantity produced" from your 2018 fiscal period. Do not report ending inventories or production from your previous fiscal period.

Report any income from the sales of 2018 crops that you will receive in your 2019 fiscal period in the "Deferred income and receivables" section.

Swath grazing

If you use swath grazing as a management practice, use code 5588 to report the number of acres you used for swath grazing. Report your production (in tonnes) and any swath remaining at the end of your fiscal period as ending inventory.

Organic production

Report your crop as "organic" only if it has been Certified Organic. We may ask for your organic certification.

Unharvestable acres

If you grew a commodity and expected to harvest it in the program year but could not for reasons beyond your control, report the commodity, acres, and enter "0" as the total production.

Snowed-under crops

If you could not harvest some or all of your crop at the end of your fiscal period because it was snowed under, report the:

• total acres for the crop using the inventory code for that crop
• estimated production that you may be able to harvest next year

Then use code 6826 – Harvest discount allowance to report all of the commodities that were snowed under.

Standing crops

If your farm always has a standing crop at the end of your fiscal period (for example, July 31^st), do not report the standing crop.

If your farm has an unexpected standing crop because you could not harvest it before the end of your fiscal period, include the standing crop in inventory.

Report the total acres for each crop you grew using the inventory codes for the commodity. Then use code 6826 - Harvest discount allowance, to report the total acreage of all commodities that had standing crop at your fiscal year-end.

Multiple crops

In provinces such as British Columbia, you may be able to harvest your commodity early enough to plant another commodity on those same acres. If you harvest both commodities in your 2018 fiscal period, report each commodity’s acreage and production in your crop inventory.

Multi-stage crops

Multi-stage crops are commodities that take longer than one year to reach full production. Because multi-stage crops are grown over several years, there are different inventory codes to reflect the stage of production.

Use the "Inventory code list" to report the stage of production for your commodity.

Report all the acres of your crop even if you did not harvest the crop in your 2018 program year.

The multi-stage crops include:

• high bush blueberries
• grapes
• sod
• Christmas trees
• echinacea
• ginseng

In British Columbia, multi-stage crops also include:

• cranberries
• hops
• sweet cherries
• apples

In New Brunswick and Nova Scotia, multi-stage crops also include:

• low bush blueberries
• cranberries

High bush blueberries and grapes

Start reporting your acres in the year you plant. Continue reporting your acres during the non-bearing years.

Low bush blueberries

Start reporting your acres once you have cleared the land and started nurturing the plants. Once you start producing blueberries, report your acres based on their stage of growth.

Sod

Report your total sod acres (seeded, growing and harvested) based on their stage of growth at the end of your fiscal period.

If you harvested and then re-seeded the same sod acres in your 2018 fiscal period, report the acres twice.

If you produce sod in the following regions of British Columbia:

• use code 6937 – Sod, acres harvested (BC Coastal Regions) to report your sod
• only report your acres once, even if you had more than one harvest within your fiscal period.

Christmas trees

There are two types of Christmas tree operations:

• tree farms
• managed natural tree stands

Tree farms plant their seedlings in a greenhouse, garden or tree farm and maintain them until harvested.

Report your total acres of trees based on their stage of growth at the end of your fiscal period. Report your production and ending inventories based on the number of trees you had in each of the stages of growth.

To report your trees, use:

• nursery codes for the seedlings you grow in your greenhouse or garden prior to transplanting to your tree farm
• code 6960 for the seedlings or trees you planted on your tree farm the first year (establishment stage)
• codes 6961, 6962, 6963, and 6964 to report your seedlings or trees based on their stage of growth

Managed natural tree stand operations select their trees from existing forest and actively maintain them until harvested.

Report the acres of trees that you actively maintained as either pre-harvested (in the ground) or harvested (removed from the ground). Base the number of acres you report on 1,000 trees per acre.

For pre-harvested acres, report the quantity produced based on the number of trees. Report ending inventories and an end of year price for your pre-harvested trees.

For harvested acres, report the quantity produced based on the number of trees harvested.

Do not report ending inventories or an end of year price for your harvested trees. Harvested trees are a perishable commodity. They are adjusted on an accounts receivable basis, not an inventory basis.

Echinacea and ginseng

Report acres in the establishment stage until the year of harvest. When you harvest the acres, report them as root harvested.

Cranberries

Report acres in the establishment stage until production starts. This stage can last up to three years.

Hops

Start reporting your acres in the year you plant.

Sweet cherries and apples

Report the total acres planted for each commodity. Your Administration will collect details on the variety, age, and density of apples and sweet cherries.

Livestock inventory valuation

Complete this section if you had livestock in your inventory during the program year. Include livestock carried over from a previous fiscal period; or carried into the next fiscal period.

This part of the form is used to:

• measure your livestock inventory change from the ending amount you reported in 2017 to the ending amount in the 2018 program year
• show that your farm has completed a production cycle

How to complete the columns

Code and description

Use the "Inventory code list" to report all livestock that you had on hand at the end of your 2018 fiscal period. Report each class of livestock separately.

Ending inventory

Report the number of head that you had on hand at the end of your 2018 fiscal period. Use actual (not rounded) numbers.

End of year price $

Include an end of year price to value livestock that are shaded on the "Inventory code list" (for your province or territory). If you are reporting a livestock category that is marked with an "X" on the "Inventory code list", leave this column blank.

Do not complete this column if you file your income tax on the accrual basis.

Livestock lease agreements

If you are involved in a lease agreement, or if you own a part of an animal, report only your share of the lease agreement. For example, if you co-own a bull with another producer, report ½ a bull in your inventory.

Lessee: If you lease a breeding herd but take only a percentage of the calf crop, report your share of the:

• herd based on your share of the calf crop (use code 8134 – Breeding females, leased (not owned) to report the leased cows)
• calves (use the code for their weight class)

Lessor: If you own cows but lease them out and take a percentage of the calf crop, report:

• 100% of your cows (use the applicable codes found in the "Inventory code list")
• your share of the calf crop (use the code for their weight class)

Livestock productive capacity

This information is used to adjust your reference margins if your operation experienced a change in structure.

Livestock lease agreements

If you lease animals but do not take 100% of the revenue from the animal, report only your share of the agreement.

Productive animals

Code 104 – cattle

Report the number of cows that calved in your 2018 fiscal period.

Do not report calves that were born in your 2018 fiscal period, even if they were:

• weaned
• sold
• held over to sell in a different fiscal period

If you hold your calves over to your next fiscal period, report them as feeder cattle next year if they had an appreciable gain in that fiscal period.

Report all your calves as inventory in the Livestock inventory valuation section, even if you hold them over to your next fiscal period.

Codes 123 and 145 – Hogs

Report the number of sows in the breeding herd within the 2018 fiscal period. Report the sows based on the type of operation (farrowing or farrow to finish).

Calculate the average number of breeding sows by dividing the births in your fiscal period by your average birthrate per sow.

If your hog operation only produced for part of the year, ensure sure your average number of breeding sows is lower to reflect your reduced production.

Codes 105 and 106 – Number of feeder livestock – Cattle

Report the number of animals you fed to an appreciable gain in 2018 (a 90 kg/200 lb weight gain or a minimum of 60 days on feed).

Group the animals fed based on:

• the sale weight, if sold in the program year
• expected sale weight, if not sold in the program year

Do not include the following animals in this section:

• breeding animals
• culls
• animals that have not been weaned
• animals born within the operation in the program year

Codes 124 and 125 – Number of feeder livestock – Hogs

Report the number of animals fed. Group the animals fed based on:

• the sale weight, if sold in the program year
• expected sale weight, if not sold in the program year

Do not include the following animals in this section:

• breeding animals
• culls
• animals that have not been weaned
• animals born within your operation in the program year
• animals previously reported in a farrow to finish operation

Custom fed livestock

Report the number of animal feed days. Animal feed days are the number of animals × the number of days each animal was fed.

Supply managed commodities

Report the amount of quota and contract you held.

Ranch fur operators

Report the number of females that birthed.

Other (specify below)

Use the "Productive capacity list" to find the code and the units needed to report any commodities that do not fit into the above categories. If the commodity is not listed, leave the code blank.

Purchased inputs

Complete this section if it is relevant to your farm.

Do not complete this section if you file your income tax on the accrual basis.

Report inputs you purchased to produce your agricultural commodities that you did not use by the end of your fiscal period.

Some examples of purchased inputs are:

• fuel
• chemicals
• purchased seed
• feed
• embryos
• semen
• fall application such as seed, fertilizers, and chemicals

Do not report your purchased inputs as ending inventory in the "Crop inventory valuation and productive capacity" and "Livestock inventory valuation" sections. For example, if you purchased $5,000 of wheat seed for next year’s crop report the amount as a purchased input but do not include the seed in the crop inventory section.

How to complete the columns

Code and description

Report all inputs you had on hand at the end of your fiscal period. This includes fall application of seed, fertilizer, and chemicals, and prepaid purchases.

Use the "Expense code list" or the "Commodity list" at the back of this guide to identify each item you report. If your item is not listed, leave the code blank.

End of year amount $

Report the dollar amount that you had on hand at the end of your 2018 fiscal period. Include any applicable 2018 fall applications and any prepaid purchases in 2018 that are designated for the 2019 fiscal period.

Livestock owners and custom feedlot operators with prepared feed purchases

Use code 571 to report the value of prepared feed and protein supplements you have on hand at the end of your fiscal period.

Ranch fur operators with prepared feed purchases

Use code 574 to report the value of prepared feed and protein supplements you have on hand at the end of your fiscal period.

Deferred income and receivables

Complete this section if it is relevant to your farm.

Do not complete this section if you file your income tax on the accrual basis.

Deferred income is income you have chosen to postpone receipt of to the following fiscal period.

A receivable is income that is owed to you, for goods delivered or services provided in this fiscal period, but not paid to you until your next fiscal period.

Deferred income or receivables must be for income that is allowable for AgriStability. For example, a receivable for the sale of grain is allowable; a receivable for machinery rental is non-allowable. See the program handbook or visit the program website for more information on allowable and non-allowable items.

Report your AgriInsurance (crop or production insurance) indemnity as a receivable, even if you did not receive your full indemnity before your 2018 fiscal year-end.

How to complete the columns

Code and description

Use the "Commodity list" and the "Program payment lists" to report all deferred income and receivables you had at the end of your fiscal period. If your item is not listed, leave the code blank.

Use code 9574 to report any deferred income, receivables for resale, rebate, or GST/HST related to your allowable expenses.

Ending receivables and income deferred to 2019

Report the dollar value of the account receivable or deferred income item that is owed to you at the end of your 2018 fiscal period.

Commodity pools

If you sold commodities into a pool but did not receive the full value for the sale at your fiscal year-end, use code 4020 to report any adjustments or final payments you received or expect to receive after your 2018 fiscal year-end. Provide an estimate if you do not know the amount of the adjustment or final payment.

If you deferred your pool payments (adjustments, interim, or final) to your next fiscal period, report these deferrals using the code for the commodity.

Custom feedlot operators

Use code 246 to report any amounts owed to you for custom feeding livestock.

Prescribed drought region (PDR), Prescribed flood region (PFR) and Canadian Food Inspection Agency (CFIA) deferrals

If you deferred a PDR/PFR or CFIA payment out of your current fiscal period, report the amount you deferred using the codes from the PDR/PFR/CFIA Deferred Livestock Codes.

Perishable horticulture crops

Report the sales of the 2018 crop that occurred in the 2019 program year as an ending receivable, once your entire 2018 crop has been marketed and sold.

Use code 4999 to report your sales and leave the ending receivable blank, if you have not:

• marketed your entire 2018 crop
• received all of your income from your 2018 fiscal period

When you know the ending receivable value, send the information to your Administration. We cannot process your form until you provide this amount.

Accounts payable

Complete this section if it is relevant to your farm.

Do not complete this section if you filed your income tax on the accrual basis.

An account payable is an expense that you owe for goods and services that you have received but have not paid for in this fiscal period.

An account payable must be for an expense that is allowable for AgriStability. For example, a payable for a livestock purchase is allowable; a payable for building a barn is non-allowable.

Include in your payables any:

• inputs that you did not pay for yet but were in your inventory at the end of your fiscal period (you must also report them in the "Purchased inputs" section)
• feed or livestock that you did not pay for yet but were in your inventory at the end of your fiscal period (you must also report them in the "Crop inventory valuation and productive capacity" and "Livestock inventory valuation" sections)

Do not include in your payables:

• the interest portion of an accounts payable
• amounts owed for items purchased through loans, lines of credit, or credit cards that have already been reported as an expense on your income tax

How to complete the columns

Code and description

Use the "Expense code list" or "Commodity list" at the back of this guide to report the accounts payable you had at the end of your fiscal period. If your item is not listed, leave the code blank.

End of year amount $

Report the dollar amount that you owed for the payable item at the end of your fiscal period.

Livestock owners and custom feedlot operators with prepared feed purchases

Using code 571 to report purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal period.

Livestock owners with custom feeding expenses

Use code 573 to report custom feeding expenses that were not paid for by the end of your fiscal period.

Ranch fur operators with prepared feed purchases

Use code 574 to report purchases of prepared feed and protein supplements that were not paid for at the end of your fiscal period.