Agstability & CFIB

[kato]

The Canadian Federation of Independent Business has released a report on the Agstability program.

http://www.cfib-fcei.ca/cfib-documents/rr3117.pdf

This is a good read. It's based on a survey they did of their members. It lays out a lot of the issues we've been having with this program.

It also questions why so few livestock producers are enrolled, when they are the ones who need the most help. Anybody have a theory on that?

[Kathy]

Government programs equal enslavement!

[per]

I thought of you Kathy when this was posted. My Dad will not participate in any of these programs because he, like you, will not be held hostage to the attached strings.

[smcgrath76]

I can only speak for ourselves as to why
we don't participate in agri-stability.
In no particular order.
1. Cost - by the time the accountant
prepares to forms there is a substantial
cost even if there is no payment.
2. Timeliness - good luck getting a
cheque in time to pay the bills incurred
during the disaster situation.
3. Declining margins - we are working
out of this pretty rapidly, but an
extended disaster (eg: BSE) means no
extended payout
4. Farm Succession - for us the process
of farm succession and transferring and
merging assets, joining partners, etc.
has created an added level of complexity
that made the program difficult to
manage
5. Control - there are real issues of
control, etc. with the program and
things like clawback of payments can
create a disaster situation on an
individual farm. As well AFSC usually
uses your Agristability account for
security on other programs, meaning if
you don't pay Revenue Canada can come
and get the money.
6. We use other risk tools that are
better suited to our risks - eg:
moisture insurance
7. Personal philosophy - I don't agree
with farming programs rather than
farming land. Our time and resources
are best spent elsewhere. I think AS
tends to lead to conventional thinking
in a lot of ways.

With all that we still keep an eye on
the program and may choose to
participate in the future. I do like
AgriInvest. Put your money in, it
doubles the next day and take it out
again. LOL.

[kato]

Assuming they send you your notice. We still have received no notice from the 2008 year. Time to pester once again. It won't be the first time. Last time I called they said, "Don't worry, we're sending them out a few at a time. Just be patient."

Nice attitude, eh?

[grassfarmer]

I don't have a problem "farming Government" as long as it doesn't negatively affect the way I farm - it's another aspect of risk management and I'm well versed in working subsidy programs to advantage. In my experience you are better to sign onto this kind of program as it opens the door to other things - example the Advanced Payment Program which requires AgriStability participation.
Saying that AS appears a pretty crap program with little to offer the average producer. I wouldn't still be participating if I had to pay an accountant to file the paperwork - we quit that after the first year or so.
Like Sean I much prefer Agri-Invest, a simple money in, money out deal.
They are all pathetic alternatives to having a functioning marketplace, real profitability and no need for subsidy or bail-out money.

[smcgrath76]

Amen to that GF. The problem as I see
it from a Government perspective and a
management perspective is that if the
program is lucrative enough to manage
real risk, then it has enough financial
incentive to forget about farming for
the right reasons and farming to the
program. I like the concept behind
agristability and reference margins and
I definitely do not like cost of
production based programs, but in
reality the program is more about
inventory valuation and timing than it
is about risk management.

[ALLFARMER]

Finally had some money to put into Agri invest (2008) And they said I was to late? WTF

[ALLFARMER]

Write a letter appealing the issue. Because of the irregular deadline to make the deposit (most were Dec 7th) which was later extended, there is still many who did not participate.

If there was extraordinary circumstances (death, sickness in the family) to support your case for sending in late, it will help.

There is no guarantee with this process but worth the stamp to try.