A.I.D.A.

[monaco]

What is in AIDA for Alberta farmers that is not covered by FIDP ? Anything ?

[kkindle]

Monaco: Thanks for posting your questions. I am also going to post this into the farm management room. Agri-ville Public Works

[bbrindle]

I asked someone in AAFRD this question and this is the reply I received: Recent changes to AIDA could mean that producers get coverage under this program that is not provided under FIDP. Below is a summary of the additional coverage provided under AIDA. Negative Margins The federal government will cover 70% of producers' negative margins in the 1998 tax year. A negative margin occurs when operating expenses, adjusted for changes in inventory, accounts receivable and accounts payable, are greater than operating revenues. FIDP does not cover negative margins. Reference Margin As of the 1998 tax year, payments under FIDP are based on the three best program margins in the last five years. The highest program margin cannot be used twice if it continues to be the highest program margin in future claims. A program margins is defined as the difference between allowable revenues and expenses. For the 1999 tax year, producers can either use their program margins in the last three years or the best three program margins in the last five years dropping the highest and lowest years. In some cases, such as back-to-back disasters where the last three years of program margins are the farmer's best years, the reference margin under AIDA will provide more coverage. Arms Length Versus Non-Arms Length Salaries Non -arms length salaries are not eligible expenses under FIDP. As of the 1999 tax year, AIDA will allow both arms length and non-arms length salaries to be included as eligible expenses. This difference could significantly increase eligible expenses under AIDA which may result in higher payments. Payment Caps Payments under FIDP cannot exceed $100,000. That is, 100% of the first 50,000 and 50% of the next $100,000. The payment cap for corporations is $500,000 or $100,000 to a maximum of five individuals. Payments under AIDA are capped at $175,000 per individual.