January 9, 2008

FUNDING AND RISK MANAGEMENT PROGRAMS UPDATE

CAIS (name will be changed to AgriStability) 2008 Interim Payment  
Producers who wish to receive 2008 CAIS program year assistance earlier can apply for the interim payment.  To be eligible to receive the interim payment producers must:

• have submitted their completed 2007 final program forms along with a copy of their 2007 T1163 (for individuals) or 2007 Statement A (for corporations) (if applicable);
•  have completed a minimum of six consecutive months of farming activity;
•  have completed a production cycle;
• be farming in Canada;
• if an individual, report farming income (or loss) to the Canada Revenue Agency (CRA) for your 2008 fiscal year by June 15, 2009;
• or —
• if a corporation, report farming income (or loss) to Agricorp by June 30, 2009; and
•  submit 2008 final program forms by the deadline and comply with all program requirements.  Failure to do so will result in an overpayment.

Application Deadline
Submit a completed 2008 Interim Payment Application by December 31, 2008 or by the end of the farm business’ fiscal period, whichever is earlier.

For more information contact Agricorp at 1-877-838-5144 or visit www.agricorp.com.

AgriInvest
The program replaces coverage for small income declines of 15% or less, previously covered by CAIS. Producers can deposit up to 1.5% of their allowable net sales (ANS) into an AgriInvest account and receive a matching government contribution.  ANS is sales of allowable commodities (excluding supply-managed commodities), plus production insurance indemnities received for allowable commodities, less purchases of allowable commodities.  Producers have the flexibility to use the funds to address declines in income or make investments to improve their business.

AgriInvest Kickstart
The Government of Canada is providing $600 million to “kick start” producer accounts.  The “kick start” payment is 2.63% of producers’ average ANS.  To receive the ‘kick start’ payment, producers must agree to participate in the 2007 AgriInvest program, and must be actively farming and report farming income/loss for income tax purposes in 2007.

Application Deadline
For producers who participated in the CAIS program for the 2004 program year or the Cost of Production (COP) Payment, an application is not required.  AgriInvest Kickstart payments will be automatically calculated and you will receive a letter requiring a response by June 30, 2008.

For producers who did not participate in 2004 CAIS or the COP program, but farmed in 2004 or started farming in 2005, 2006 or 2007, must complete and submit an application by March 31, 2008 to participate in AgriInvest Kickstart.

Timing of Payments
First payment will begin in the winter 2007 followed by a second payment in the summer 2008, if funds remains after all first payments have been made.

For more information or for an application call Agriculture and Agri-Food Canada at 1-866-367-8506 or visit www.agr.gc.ca/agriinvest .

AgriStability
Margin-based program that provide farmers with assistance for larger income declines. It replaces the coverage previously available under CAIS, compensating producers when their margin in the program year is more than 15 percent lower than their reference margin – their average margin from previous years.

A fee will be charged based on the producers’ reference margin.

2008 AgriStability Program
Producers who participated in the 2007 CAIS Program will automatically receive documentation for the 2008 AgriStability Program.  Application kit for new participants will be available through Agricorp in the near future. 

Application Deadline
April 30, 2008

For more information contact Agricorp at 1-877-838-5144 or visit www.agricorp.com.

Ontario Cattle, Hog, and Horticulture Payment (OCHHP)
Financial assistance funded by the Ontario government for cattle, hog and horticulture producers. 

Eligible producers will receive a payment based on their historical allowable net sales between 2000 and 2004.  To be eligible for the OCHHP, producers must meet two requirements:

• They must have received a federal Cost of Production (COP) payment and/or an Ontario Cost Recognition Top-up (OCRT) payment.
• At least half of their total commodity sales as reported to the Canada Revenue Agency (CRA) in 2005 and/or 2006 must have come from any combination of cattle, hogs, or horticulture.

Application deadline
No application available.  Producers who did not receive a COP or OCRT payment are not eligible to receive the OCHHP.

Timing of Payments
Payment delivery to begin February 2008.

For more information, contact Agricorp at 1-877-838-5144 or visit www.agricorp.com.

Advance Payment Program
Loans up to $400,000 are available to qualified borrowers. The first $100,000 borrowed is interest-free, with the balance available at interest rate of Prime minus 0.25%. Each borrowing cycle runs for an 18 month period. Producers repay their advance as the livestock or the crops are sold throughout the years.

Advance Payment Program (Livestock)
Qualifying livestock includes hogs, cattle and sheep.

To be eligible producers must:

• maintain CAIS (AgriStability) coverage on livestock financed; and
• Complete an Advance Payment application and associated documents as outlined in the program guidelines.

Application Deadline
Current application may be submitted anytime between April 1, 2007 and February 28, 2008.  Check with ACC Farmer’ Financial for the next application cycle.

Advance Payment Program (Crop)
Qualifying Crops include grains, oilseeds, potatoes, specific fruits and vegetables, and more.

• To be eligible producers must:
  -maintain Production (crop) Insurance through AGRICORP on the crops financed or
  -maintain CAIS(AgriStability) coverage on the crops.

Application Deadline
Check with ACC Farmers’ Financial.

Advance Payment Program (Crop Storage)
Storage loans are available for grains, oilseeds, potatoes, specific fruits and vegetables, and more. Farm-Fed grains are not eligible, however, interest-free livestock loans are available. See Advance Payment Program (livestock) above. Loans are based on crop in storage.

Application Deadline
Current applications must be postmarked no later than February 29, 2008.  Check with ACC Farmers’ Financial for future deadlines.

For more information, call ACC Farmers’ Financial at 1-888-278-8807 or visit www.accfarmersfinancial.ca.

Ontario Risk Management Program (RMP) for Grain and Oilseed Producers
The Risk Management Program is a 3-year price support program designed to help Ontario grain and oilseed producers offset losses caused by low commodity price.  The program covers 2007 to 2009 crop year.    

To participate in the Risk Management Program, producers must:

• Grow at least one of the 21 eligible grain and oilseed crops.
• Enroll all of their eligible grain and oilseed crops for the full three-year RMP pilot. RMP premiums will be waived in 2007.
• Participate in both CAIS (AgriStability) and Production Insurance for all three program years.
• The requirement to participate in Production Insurance will be waived for the 2007 crop year because the enrolment deadlines have already passed.
• Because a number of the "minor crops" do not have Production Insurance plans available for them, that requirement will also be waived for any year in which no Production Insurance plan exists for a particular crop.
• Participate in marketing and/or financial planning courses as required by the Ontario Ministry of Agriculture, Food and Rural Affairs. The details of this requirement will be worked out with industry representatives at a later date.

*You may enroll for 2008 even if you did not enroll for 2007.

Application Deadline
Application deadline for 2008 RMP is not finalized, but is expected to run along deadlines for Production Insurance.  The recommendation is that producers contact Agricorp to enroll with Production Insurance and get in the system to receive 2008 RMP information and application when it becomes available.

For more information contact Agricorp at 1-877-247-4999 or visit www.agricorp.com

Production Insurance
Production Insurance (PI) is a business risk management program that protects Ontario producers from yield reductions and crop losses caused by adverse weather and other insured perils.  Production Insurance coverage is available on 64 commercially grown crops including grains, oilseeds, vegetables, fruits, honey, and forage.  Producers pay 40% of the total premium cost and the government pays the balance. 

Application Deadline
For spring grain, oilseeds and forage rainfall coverage, an application must be submitted by May 1st.

For more information, contact Agricorp at 1-877-247-4999 or visit www.agricorp.com