Financial Assistance

AgriInvest

PROGRAM DESCRIPTION

AgriInvest is a Business Risk Management Program under the Canadian Agricultural Partnership.

It helps farmers by matching their contributions to a special program savings account. Farmers can use the funds in their AgriInvest accounts to:

  • cover small margin declines 
  • reduce risk 
  • invest in farm-related improvements

The federal government pays 60 per cent of the program cost, and the provincial government pays 40 per cent.


WHO QUALIFIES

All farmers, including status Indians farming on reserves, are eligible if they report farming income for tax purposes and meet all other program requirements, including deadlines for sending information and paying program fees.

Most agricultural commodities are eligible except those who produce: 

  • supply-managed commodities
  • aquaculture
  • forestry products
  • peat moss
  • game

Farmers who process or resell items they do not produce are ineligible. 


AVAILABLE ASSISTANCE

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.

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 (ex: custom work, rental income, program payments) are not included, nor are most expenses (ex: inputs, overhead expenses, machinery, rental expense, interest, depreciation, labour).

  • Sales are calculated as of the point of sale. Grain sales are recorded as of the local delivery point, if the commodity is then no longer under the farmer's control. 
  • If there are no itemized invoices or receipts, adjustments are made to custom feeding and prepared feed to estimate the commodity value.

The maximum government contribution iseplls one per cent of ANS. That means a farmer with ANS of $250,000 would be eligible to make a matching deposit of $2,500. The maximum farmer deposit is 100 per cent of ANS, but only the first one per cent is matched.

  • The maximum ANS is $1.5 million until the 2017 program year (fiscal year ending December 31, 2017 or earlier) decreasing to $1 million, starting with the 2018 program year (fiscal year ending January 1, 2018 or later).
  • The maximum account balance is 400 per cent of the average ANS for the current year and the previous two years (or all farming years in the case of a new farmer).

Withdrawals

Farmers may withdraw the funds in the account at any time, subject to any limitations by the administration and/or the bank/credit union 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.


HOW TO APPLY

  1. Open a program account at a participating bank or credit union. The federal government website will explain how. 
  2. At the end of the fiscal year, participants must submit financial information, usually found on their income tax forms, to the program administration who will calculate the current year's eligible contribution.
  3. The administration, then, sends a deposit notice to the farmer, noting the:
    • maximum deposit
    • deadline for making a deposit
    • maximum account balance
    • maximum government contribution
  4. Participants make a deposit into the account, which is matched by a government contribution.

APPLICATION DEADLINE

For details, including forms and guidelines, go to: www.agr.gc.ca/agriinvest.


WHO TO CONTACT

This information is intended as a guide only.

Agriculture and Agri-Food Canada administers the AgriInvest program in Manitoba. Program administration can be reached at 1-866-367-8506.

For general information on the AgriInvest program, contact your local Manitoba Agriculture office.