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Is AgriStability a fit for your farm?

Should You Enroll in AgriStability in 2025?

 

Introduction: AgriStability is a federal-provincial farm support program designed to protect Canadian farmers when their income takes a steep drop. In simple terms, it’s like insurance for your farm’s income. If your net farming income for the year falls well below your recent average, AgriStability can step in with a payment to help make up part of the difference. The question many producers are asking is whether 2025 is the year to (re)enroll in AgriStability. For years, many farmers often skipped AgriStability due to its complexity, paperwork, and historically low payouts. But recent changes in the economic climate and improvements to the program itself mean it deserves another look. This article will break down what AgriStability is, why it’s been unpopular, what’s changed for 2025, and which farms might benefit from enrolling this year.

 

If You Decide to Enrol

For enrolment forms, submission details, and contact information, visit our AgriStability Enrolment page.

We also have an AgriStability FAQ page with answers to frequently asked questions relating to the program.

 

What is AgriStability and How Does It Work?

AgriStability is a government-led risk management program that provides “whole farm” income protection. It covers all your commodities together – grains, oilseeds, livestock, etc. – by ensuring your production margin (eligible income minus eligible expenses) doesn’t drop beyond a certain point.  Here’s a quick overview of how it works:

  • Reference Margin (Recent Average): AgriStability looks at your farm’s average net income (margin) over the past few years (usually the last five, dropping the highest and lowest). This is often called your reference margin – basically, your typical farm income in a normal year.  Keep in mind, this is not actual net income; rather it only takes into account eligible income and eligible expenses.  In greatly simplified terms, think of eligible as including farm commodity sales and the most direct expenses such as seed, feed, fertilizer, pesticides, fuel, etc.
  • Coverage Trigger: If your current year’s margin falls below 70% of that reference margin (in other words, more than a 30% drop), it “triggers” a potential AgriStability payment. For example, if your average margin was $100,000, a drop below $70,000 would trigger the program.
  • Payout Calculation: Once triggered, AgriStability doesn’t cover the entire shortfall, but a portion of the drop. Until 2025, the program would pay 80% of the difference between your actual margin and the 70% threshold. In our $100,000 example, if you only made $60,000 (i.e. $10,000 below the $70k trigger), AgriStability would pay 80% of that $10,000 shortfall – about $8,000.

This “whole-farm” approach means AgriStability can cover risks that crop insurance doesn’t. It kicks in for any combination of factors that slash your income – whether it’s a price crash, rising input costs, poor yields, or all of the above. It’s funded by federal and provincial governments (60:40 split) to keep it affordable. Enrollment is annual – producers must sign up by the yearly deadline (for 2025, it’s April 30, 2025.

 

Why Have Many Farmers (and Accountants) Avoided AgriStability?

Despite its good intentions, AgriStability has developed a bit of a bad rap over the years. As an accountant who has worked with many farms, I’ve often not recommended it in the past due to several practical issues. Here are the main reasons many producers chose not to enroll:

  • Complexity & Paperwork: The program can be complex and time-consuming. It requires detailed farm financials, inventory tracking, and completing forms like the T1163/1273 Supplementary Information Forms. Unless you’re very organized, it often means hiring an accountant to prepare the application. This adds an administrative burden that busy farmers don’t need. In short, AgriStability has a reputation for headache-inducing paperwork and lengthy forms.
  • High Costs: Enrolling isn’t free – there’s an enrollment fee (around $315 for every $100,000 of reference margin, capped at $2,500) and often professional fees to prepare the forms. Many farms pay their accountant a significant fee to handle the AgriStability application, answer follow-up questions from the program administrators, and double-check the calculations. You also have to spend time pulling together all the required info (income, expenses, inventories). When you add it up, the costs can be substantial. Some analysts estimate the total cost (fees + accounting) at roughly $2 to $4 per acre for many farms.
  • Low or Infrequent Payouts: Perhaps the biggest gripe is that AgriStability often didn’t end up paying out for many participants. Because of the 30% margin-drop trigger and how other payments are counted, a lot of farmers never saw a dime even after bad years. For instance, if you carried crop insurance or received crop/hail payouts, those counted as income in AgriStability’s calculation, often erasing what would have been an AgriStability claim. From about 2013 to 2019, the program’s coverage was trimmed (the compensation rate was 70% for a while, and a “reference margin limit” reduced coverage for some farmers with lower expenses). These factors led many to feel AgriStability “wasn’t worth it.” In a 2016 Saskatchewan survey, only 18% of farmers felt AgriStability was benefiting their farm or likely to in future. Participation fell sharply over the past decade.
  • Lengthy Processing and Uncertainty: In the past, AgriStability claims could take a long time to process – sometimes more than a year after the bad year – which diminishes the usefulness of the aid. The rules were also hard to interpret, leaving farmers unsure if they’d get anything even after a big income drop.

Given these downsides, it’s no surprise many producers (and their advisors) threw up their hands and opted out. If markets were decent and you had crop insurance, AgriStability felt like a lot of hassle for slim chances of a payout. However – and this is a big however – the farm business environment is changing, and so is AgriStability. That brings us to 2025.

 

New Challenges in 2025: Why the Risk Landscape Has Changed

Several recent economic and geopolitical developments are hitting farm incomes and creating more uncertainty heading into 2025:

  • Chinese Tariffs on Canola (and More): In March 2025, China imposed hefty tariffs on certain Canadian ag products in a trade dispute. This included a 100% tariff on canola oil and meal, and peas, and a 25% tariff on pork and aquatic products. China is a huge market for Canadian canola and pork, so these tariffs have been devastating for prices and export volumes in those sector. Canola in particular, which generated $13.6 billion in farm cash receipts in 2023, is now facing major market access issues.
  • Trade Tensions with the U.S.: Apart from China, there’s also trade uncertainty with the United States – our biggest trading partner. While no major new U.S. tariffs have hit yet, there have been threats and a general climate of protectionism. Any move by the U.S. to impose tariffs (for example, during trade negotiations or disputes over dairy, etc.) could quickly hurt Canadian farm exports. In short, the international trade environment is shakier than it’s been in years.
  • Lower Crop Prices: Unlike the price boom of a couple years ago, many crop prices have softened in 2024 and 2025. In fact, by the end of 2024, prices for major grains and oilseeds were significantly down from the previous year. Statistics Canada’s index shows that by December 2024, the overall crops price index fell ~12% year-over-year, with grains down ~17% and oilseeds down ~15%. A big harvest and ample global supply pushed down wheat, canola, and soybean prices. So, many grain and oilseed farmers are heading into 2025 with thinner margins than they’ve seen recently.
  • Rising Costs and Other Risks: Don’t forget input costs – fertilizer, fuel, interest rates – which remain high. Livestock producers have enjoyed strong cattle prices in 2023-24, but hog prices have been volatile and disease threats (like African swine fever) loom. All these factors mean higher risk of an “income shock” – a sudden drop in farm income that could be hard to weather without a safety net.

With these clouds on the horizon, the risk of a bad year has gone up. As one farm advisor put it, even after years of decent returns, recent trade challenges and market dips show that “farmers could see a very significant hit to their bottom line” if even one commodity takes a dive – and traditional tools like crop insurance won’t help with a price crash. This changing risk landscape is exactly why AgriStability, despite its flaws, is being revisited. Governments have noticed and have rolled out improvements to the program for 2025.

 

What’s New in AgriStability for 2025? (March 2025 Enhancements)

In March 2025, the federal government announced enhancements to AgriStability aimed at making it more generous and responsive in light of the trade disruptions. The key improvements for the 2025 program year are:

  • Higher Payout Rate (Compensation Rate 90%): AgriStability will now cover 90% of a producer’s income shortfall, up from 80% previously (Government of Canada announces support for agricultural sector following the imposition of tariffs by China – Canada.ca). This means when your margin falls below the coverage level (70% of your normal), the program will pay 90 cents on the dollar of that drop, instead of 80. That’s a 10% boost in support. Implication: If you trigger a payment, it could be significantly larger. For example, under the old rules if you had a $100,000 shortfall, you’d get $80,000; now you’d get $90,000. We’ll run a detailed example in a moment.
  • Doubled Payment Cap: The maximum AgriStability payout is being temporarily doubled to $6 million for 2025. The previous cap ($3 million) had not changed in over 20 years. This change ensures large farms aren’t prevented from getting support just because of an outdated cap. Only very large operations would hit the old $3M limit, but doubling it to $6M means even a huge loss on a big farm can be partially covered. (Most average farms would never reach the cap, but it’s good to know it’s higher now if you’ve grown your operation or run multiple farm entities.)
  • Faster Access to Funds (Interim and Targeted Advances): The government also gave provinces the option to increase interim payments and offer “Targeted Advance Payments.” If provinces opt in, enrolled producers could get an interim payment of up to 75% of their estimated final AgriStability benefit (vs 50% normally). And if a disaster hits a particular sector (say, a tariff or disease that clearly causes big losses), the program administrator can issue sector-specific advance payments to affected AgriStability participants. The goal is to put money in farmers’ hands faster during a crisis. (These changes depend on provincial implementation, but it shows the intent to make AgriStability more responsive when it’s needed most.)

These enhancements make AgriStability more farmer-friendly. In plain language: if you have a bad year in 2025, AgriStability will now cut a bigger cheque, and you might get some of it sooner. The higher compensation rate in particular partially addresses the “low payout” criticism.

 

Example: Old vs New AgriStability Payout

Let’s illustrate how the new 90% rate could benefit a farm. Suppose your farm has a reference margin of $1,000,000. The AgriStability coverage level (70% of that) is $700,000. Now imagine that due to low prices or other factors, in 2025 your actual margin drops to $500,000.

  • Shortfall Calculation: Your margin fell below the $700,000 coverage trigger by $200,000 ($700k – $500k). This is the income loss that AgriStability can potentially cover.
  • Payout at 80% (Old Rate): Under the old 80% compensation rate, the program would pay 80% of $200,000 = $160,000. So you’d get $160k to help cover that $200k gap.  Or, in another way of looking at it, you’d get $160k to cover a total margin drop of $500k.
  • Payout at 90% (New Rate): Now, at a 90% rate, it would pay 90% of $200,000 = $180,000. That’s $20,000 more support than before for the same situation.

In percentage terms, instead of recovering 80 cents on the dollar of your covered margin shortfall, you now recover 90 cents. Essentially, AgriStability 2025 is putting a bit more money on the table when you need it.

Keep in mind: you still have to experience a pretty steep income drop to trigger AgriStability (that hasn’t changed – the trigger is still a 30% decline). But if that happens, the program will cushion the fall more effectively than before. With the combination of higher coverage and the possibility of quicker interim payments, the program is more attractive than it used to be on a purely financial basis.

And, based on current messaging from government departments, it is likely that if further farm supports are offered, they are likely to be delivered at least in part through the AgriStability program.

 

Linking AgriStability to the 2025 Cash Advance (Advance Payments) Program

One often overlooked reason to enroll in AgriStability is that it can unlock additional benefits beyond the program itself. A prime example for 2025 is the federal Cash Advance program, officially known as the Advance Payments Program (APP). This program provides farmers with low-interest or interest-free cash advances on their commodities, to help with cash flow throughout the year.

For 2025, the government has increased the interest-free portion of cash advances to $250,000 (up from the usual $100,000) (Advance Payments Program: Step 1. What this program offers – agriculture.canada.ca). This means eligible farmers can borrow up to $250k at 0% interest, and up to a total of $1 million at a low interest rate, to pay for seeding, inputs, or other expenses until they sell their crop or livestock ( Cash Advance Benefits | Canadian Canola Growers Association ). This is a big boost to cash flow for those who qualify.

So, what’s the link with AgriStability? For some commodities, being enrolled in AgriStability is actually a requirement to access these cash advances. Specifically:

  • Grains and Oilseeds: If you want an advance before harvest (i.e. on your planted crop that’s not yet harvested), you typically need to have either crop insurance or AgriStability as security. For example, the Canadian Canola Growers Association (a major APP administrator) states that a grain producer must have 2025 crop insurance or be enrolled in 2025 AgriStability to be eligible for a pre-harvest advance (). If you don’t carry crop insurance, AgriStability enrollment can make you eligible for the advance.
  • Livestock and Honey: For livestock producers (e.g. cattle feedlots, hog barns) and honey producers, there usually isn’t an equivalent insurance program to back an advance – so enrollment in AgriStability is required to get an APP loan on those products.

In short, if you plan to use the Cash Advance program in 2025 for additional cash flow, signing up for AgriStability can be crucial. It could make the difference in getting up to $250,000 interest-free to fund your operations ( Cash Advance Benefits | Canadian Canola Growers Association ). Even if you’re unsure about AgriStability’s payouts, you might choose to enroll just to access this financing benefit. (Consider it a side-door benefit of the program.) And remember, cash advances need to be repaid as you sell your product, but they can significantly reduce your interest costs and improve liquidity through the season.  As an example, a producer accessing the full $250,000 interest-free advance would save $11,250 on interest, based on a 9-month borrowing term, and compared to a 6% interest rate on an operating loan.

 

Who Might Benefit from Enrolling in 2025?

With the risk environment and program features now changed, what types of farms should give AgriStability a serious look in 2025?

  • Mid-to-Large Grain and Oilseed Producers: If you grow crops like canola, wheat, barley, corn, soybeans, etc., especially on a significant number of acres, AgriStability is more attractive now. Why? Because you are exposed to global market swings – like the current lower prices – and a trade shock or price collapse could slash your income. The higher 90% payout rate and the removal of disincentives (like no longer counting private insurance as income) mean you’re more likely to get a meaningful payment if markets tank. Also, larger farms that previously might have bumped against the $3M cap have more room with a $6M cap. For a mid to large cash crop farm, the cost per acre (~$2-4) is relatively small compared to the protection on potentially millions in revenue.
  • Mixed Operations (Crops + Livestock): Farms that have a mix – say grain and cattle, or corn and hogs – should consider enrolling. Mixed farms used to feel AgriStability didn’t trigger because one enterprise might do well while the other struggled. But in a year where both sides get hit (e.g. livestock production costs up and crop prices down), your margin could drop sharply. AgriStability covers the whole farm margin, providing a safety net if your overall income crashes. Moreover, if you’re in livestock at all, having AgriStability opens up the option for the cash advance as noted above. Think of it as adding an extra layer of protection across your diversified operation.
  • Livestock-Only Operations: This includes cattle ranchers, feedlots, hog producers, sheep, dairy, etc. Some livestock producers have historically stayed away from AgriStability (especially cow-calf beef producers, who found the program less helpful unless there was a disaster like BSE in 2003). It’s true that if you’re a small cow-calf farm, the likelihood of an AgriStability payout for 2025 appears to be low, based on current market prices. However, consider the current situation: cattle prices are high now, but could pull back; hog producers face both price and disease risks. If a major price drop or disease outbreak happens, AgriStability could be a lifeline (for example, it significantly helped many beef farms during the BSE crisis years ago. Also, as mentioned, for cattle and hog farms, AgriStability enrollment is often needed to get fed cattle or feeder hog cash advances. For feedlot and hog operations with tight margins and high revenue, AgriStability’s higher cap and payout rate in 2025 mean you should probably take another look.  Although it may not be a fit, you should monitor market conditions, changes to the program, and your appetite for risk.
  • Small Farms / Niche Operations: If you’re a very small farm with stable income or a part-time operation, the AgriStability payout in a bad year might be minimal, yet you’d still deal with the paperwork and fees. For these producers, the program can still feel like more trouble than it’s worth. However, one reason a small beef farm or a specialty crop grower might enroll is to access other programs (like the cash advance or certain bank loans that require BRM participation. It really comes down to how vulnerable your income is and whether you need the added peace of mind. Not everyone will benefit equally – and that’s okay. If your farm has very little volatility or you have other financial cushions, you might decide to pass. Just make sure it’s an informed decision, not an automatic “no” based on the old AgriStability reputation.

 

Bottom Line: Time to Give AgriStability a Serious Review

In conclusion, 2025 is a year to seriously consider (or reconsider) AgriStability for your farm. The combination of higher risks (volatile markets, trade fights, falling prices) and improved program terms (90% coverage, bigger caps, potentially faster payouts) has shifted the cost-benefit equation more in favor of enrolling. Even those of us who were AgriStability skeptics before are acknowledging that the “negatives of the program may have been oversold” in some cases. It’s still not a perfect program by any means – the forms and rules can be a pain, and it’s still to hard to predict whether or not you’ll get a payment. But it’s a relatively low-cost way to reduce risk to your operation, essentially a backstop if things go really sideways.

Every farm is different, and the decision will depend on your individual situation. You should look at your financial resilience: Could you handle a 30-40% drop in income without external help? If not, AgriStability is worth a look. At the very least, run the numbers or talk to your accountant/advisor about it. With the April 30, 2025 enrolment deadline approaching, now is the time to review the program details (see the links below for more info and how to apply) and make an informed choice. Given the new environment, producers who sat on the sidelines may find 2025 is the year AgriStability makes sense again.

Remember: No one can predict the weather or markets with certainty. AgriStability is there for the unpredictable, the “what if” scenarios that could otherwise jeopardize your farm’s viability. As the saying goes, hope for the best, plan for the worst. Enrolling in AgriStability is one way to plan for the worst – and with the recent changes, that plan just got marginally better for farmers.

 

If You Decide to Enrol

For enrolment forms, submission details, and contact information, visit our AgriStability Enrolment page.

We also have an AgriStability FAQ page with answers to frequently asked questions relating to the program.

Sources & Further Reading: