Financial Assistance

AgriInvest

 

PROGRAM DESCRIPTION

AgriInvest is designed to help farmers deal with small drops in income or invest in improvements in their farming operations by matching producer contributions to a savings account. The federal government pays 60% of the cost of the program, and the provincial government pays 40%.

Producers can use the funds in their AgriInvest account to address a small margin decline or for risk mitigation and other investments.


WHO QUALIFIES

All farmers are eligible, provided they report farming income for income tax purposes (status Indians farming on reserves are eligible if they submit the equivalent information), and meet all program requirements.

Most agricultural commodities are eligible except for supply-managed commodities, aquaculture, forestry products, peat moss, and game farming. Processing or resale of items not produced by the participant is not eligible.


APPLICATION PROCESS

  1. Producers open a program account at a participating financial institution. Refer to the federal government website (below) for updated information on opening an account.
  2. At the end of the fiscal year, the producer submits information to calculate the current year's eligible contribution. For most individuals, this information is contained in their income tax forms.
  3. The administration sends a Deposit Notice to the producer outlining the maximum producer deposit, the deadline for making a deposit, the maximum account balance, and the maximum government contribution.
  4. Participants make a deposit into the account, which is matched by a government contribution.

CALCULATION OF GOVERNMENT CONTRIBUTION

Contributions are based on the participant's Allowable Net Sales (ANS) in a given year. ANS is the difference between the sales and purchases of eligible commodities.

Only revenue from sales and purchases of farm commodities are included in the calculation, as well as income from AgriInsurance or similar commodity-replacement programs. Other income such as custom work, rental income, or program payments are not included, nor are most expenses such as inputs, overhead expenses, machinery, rental expense, interest, depreciation, or labour.

  1. Sales are calculated as of the point of sale, i.e. grain sales is recorded as of the local delivery point if the commodity is then no longer under the producer's control.
  2. In the absence of itemized invoices or receipts, adjustments are made to custom feeding and prepared feed to estimate the commodity value.

For the 2012 Program Year (fiscal year ending between January 1 and December 31, 2012),

  1. The maximum government contribution is 1.5% of ANS; a producer with ANS of $250,000 would be eligible to make a matching deposit of $3,750.
  2. The maximum ANS is $1.5 million.
  3. The maximum account balance is 25% of the average ANS for the current year and the previous two years (or all farming years in the case of a new producer). If the current year's government contribution would cause an account balance to exceed the maximum the contribution is reduced accordingly.

Starting with the 2013 Program Year (fiscal year ending after December 31, 2012),

  1. The maximum government contribution is 1.0% of ANS; a producer with ANS of $250,000 would be eligible to make a matching deposit of $2,500
  2. The maximum producer deposit is 100% of ANS; the first 1.0% is matchable
  3. The maximum ANS remains $1.5 million
  4. The maximum account balance is 400% of the average ANS for the current year and the previous two years (or all farming years in the case of a new producer)

WITHDRAWALS

Producers may withdraw the funds in the account at any time, subject to any limitations by the administration and/or the financial institution where the account is held.

If the participant has no sales or purchases of eligible commodities, or does not submit the program forms, for two consecutive years their account will be closed and the balance paid to the participant.


FOR MORE INFORMATION

The above information is intended as a guide only.

For updates, contact the program administration at 1-866-367-8506.

Detailed instructions, including forms and guidelines, are available on the Canadian government website: www.agr.gc.ca/agriinvest


WHO TO CONTACT

MAFRI GO Office for general information.

Program administration at 1-866-367-8506 for AgriInvest account information.