Important changes to AgriStability for 2020 to 2022

Watch a short video further explaining the AgriStability changes and the impacts they will have on your specific operation.

The 2020 to 2022 national AgriStability program changes have been raising a lot of questions. What does the Reference Margin Limiting (RML) removal mean for producers? How has the treatment of private insurance payments changed? Who wins?

Removal of reference margin limiting (RML)

The RML feature of the AgriStability program has been confusing and misunderstood since it was first put into place in 2013 with Growing Forward 2. RML has made the program less predictable, less bankable, less transparent, and certainly very complicated. It has contributed to a lot of producers feeling that the program was broken, whether RML affected them or not.

How will the change impact your operation?

The removal of RML is very positive, as it has reduced the potential benefits for a lot of producers in certain sectors such as grains and oilseeds, cow / calf operations, and hog farrowing operations since 2013. Producers and sectors who had low to moderate AgriStability eligible costs and corresponding limited reference margins, will benefit from higher reference margins and better coverage.

Treatment of private insurance proceeds

Previously, producers who received a private insurance payment had that revenue amount included in their AgriStability allowable income, thereby reducing AgriStability payments. 

How will the change impact your operation?

Proceeds from Livestock Price Insurance, private hail, GARS and Just Solutions will no longer reduce or offset AgriStability payments, but they continue to be included in reference margins, helping to maximize payment potential. Producers can potentially double up on coverage if they take AgriStability and private insurance.