Business Risk Management Programs

A quick guide on programs available for all maple syrup producers.

AgriStability

What it is:

A provincial and federal government program that covers large margin declines caused by production loss, increased costs or market conditions.

What you could get:

  • 70% of the difference between your Production Margin and the payment trigger

Production Margin = Allowable income – allowable expenses + inventory adjustments

Payment trigger = 70% of your reference margin

Reference margin = Olympic average of last 5 production margins (drops the highest and lowest values out of the 5)

For example, your Reference Margin is $100,000. You made $60,000 this year, which is your Production Margin. This is less than 70% of your Reference Margin and will thus trigger the payment.

Payment = (Payment trigger – Production Margin) x 70%

Payment = ($70,000 – $60,000) x 70%

Payment = $7,000

AgriCorp clearly explains how it works.

AAFC’s Quick Estimator will help you determine what you could get.

You are eligible to apply for coverage if:

  • You farm in Ontario
  • You completed one production cycle and at least 6 consecutive months of farming activity in the program year*
  • Report farming income/loss to the Canada Revenue Agency unless exempt under the federal Indian Act

If your margin falls below 70% of your recent average that you reported as farming income to the Canada Revenue Agency, you may be eligible for a payment.

*these requirements may be waived under certain conditions

What is covered?

  • Expenses directly related to production of maple syrup (e.g. equipment, land rent)

What isn’t covered?

Examples include:

  • Crop losses that could have been covered by production insurance
  • Building and fence repairs
  • Machinery repairs, licenses, and insurance

How you can apply:

More information:

AgriCorp’s AgriStability page (use left hand menu to navigate)

Government of Canada General AgriStability Guidelines

AgriCorp’s Technical Information Circulars

AgriInvest

What it is:

Effectively, a savings account that the producer, provincial government, and federal government contribute to together. Funds can be withdrawn at any time and for any reason.

What you get:

You can deposit up to 100% of your Allowable Net Sales to the AgriInvest account and receive a matching government contribution of 1% of your Allowable Net Sales.

For example, if you deposit $100,000 of your Allowable Net Sales into AgriStability, you will receive a matching government contribution of $1,000.

The limit to your AgriInvest account is 400% of your average Allowable Net Sales from the current and last two years.

You are eligible if:

  • You earn income from primary production of agricultural commodities
  • You farm in Canada
  • You file an income tax return reporting farming income to the Canada Revenue Agency by the final deadline each year
  • File an AgriInvest form reporting sales and purchases of allowable commodities by the deadline

How you can apply:

  1. Fill out the Ontario application form here
  2. File it by the deadline, available at the same link above

More information:

Government of Canada’s AgriInvest Page

Self-Directed Risk Management Program

What it is:

Similar to AgriInvest, growers can deposit funds into an SDRM account with Agricorp, and the provincial government will make contributions. Funds can be withdrawn at any time and for any reason.

What you get:

The government may match up to 100% of your contribution.

You are eligible if:

  • You have produced and sold maple products in Ontario the previous year
  • Filed a T1163 with the CRA OR submitted a Statement A to Agricorp for the previous year
  • Have farmed maple for a minimum of 6 consecutive months in a tax year
  • Have a minimum of $5,000 in allowable net sales according to the calculation on your deposit notice
  • Have a premises identification number

How you can apply:

  • Agricorp will send participation forms to eligible producers each September
  • Make a deposit to your SDRM account by the deadline indicated on your forms

More information:

Agricorp’s Risk Management Program page (use the left-hand menu to navigate)

Farm Property Class Tax Rate Program

What it is:

A Government of Ontario program that provides reduced taxation rates for farmers.

What you get:

Your farmland is taxed at no more than 25% of your municipality’s residential property tax rate. Your farm residence and the 1 acre surrounding it are taxed at the municipality’s residential tax rate.

You are eligible if:

  • The Municipal Property Assessment Corporation has assessed your property as farmland
  • Your property is actively being farmed and generates a gross farm income of at least $7,000, that is filed with the Canada Revenue Agency
  • You have registered your farm business with Agricorp and have a Farm Business Registration number (with possible exemptions)
  • You are a Canadian citizen or a permanent resident

How you can apply:

When you buy farmland, Agricorp will automatically send you an application to assess your eligibility.

More information:

Agricorp’s page on the Farm Property Class Tax Rate (use the left-hand menu to navigate)

Updated September 21, 2021