Calculating AgriStability Program Benefits

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Once all forms have been processed, the administrator will issue a calculation of program benefits to participants detailing their program year margin and reference margin. Based on program criteria and eligibility, if the program year margin has declined relative to the reference margin, the calculation will indicate the amount payable to the producer.

The program year margin is based on the allowable income and expenses directly related to the farming operation. It is calculated by subtracting allowable expenses from allowable income reported to the Canada Revenue Agency (CRA).

The reference margin is calculated by taking the program year margins from the past five years, dropping the highest and lowest years, and then averaging the remaining three years. This is called an olympic average.

If you did not farm in the last three years, reference margins can be created using industry averages and standards for the missing years. New participants will be required to submit historical financial information from only the previous three years as well as the supplemental information.

Positive and Negative Program Year Margins

If the participant’s reference margin for the program year is greater than zero (positive margin) and their program year margin has declined more than 30% of their reference margin, the amount payable is calculated according to the percentage of the decline. (See sample calculation below.) If the program year is less than zero (negative margin), the participant may be eligible to receive additional payment for the part of the decline that falls within the negative margin.

A negative program year margin occurs if your allowable expenses exceed your allowable income after adjustments for changes in inventory valuation, receivables, payables and purchased inputs. Negative margins are protected under the AgriStability program.

Sample Calculation

If your production margin for the current program year falls below your reference margin by more than 30% you may receive a payment. AgriStability covers 80% of your decline that is beyond the 30%. For example:

Reference Margin [A] $100,000
Coverage Level (70% of [A]) [B] $70,000
Production Margin [C] $40,000
Decline Covered [B - C] $30,000
AgriStability Compensation Rate 80%
Payment Amount $24,000


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Date de publication : 
le 3 Mars 2023
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Société d’assurance agricole de l’Î.-P.-É.
7, promenade Gerald McCarville
Kensington (Île-du-Prince-Édouard)
Téléc. : 902-836-8912

Adresse postale : C.P. 400
Kensington (Île-du-Prince-Édouard) C0B 1M0


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