AgriStability could be a game changer for 2021 – Don’t smash your screen!

[TechAnalyst]

I do not want to debate the merits of any of this, merely want to try to do my part to get the word out for the good of the Western Canadian farm economy.

In the midst of all of the volatility in crop and input pricing, there are (at least) three critical management considerations that should not be overlooked.

The first two are related to AgriStability.

For crop producers, this is especially critical if you face large contract buybacks due to a lack of production. Commodity purchases are part of the allowable expenses so 70% of the buyback could be covered if you are in a claim position. A late enrollment option has been allowed and should be considered if you’re in this camp.

For livestock producers, cow/calf operators in particular, the reference margin limit removal couldn’t have come at a better time. You can now be covered up to 70% of your reference margin (average profit) instead of just 70% of your relatively low allowable expenses. This could be very significant if you had to purchase feed when not normally doing so. Again, may be wise to consider the late enrollment option.

(Note – these are simplified comments to keep them as short as possible)

A third point to consider is for the ones fortunate enough to have had a great year in 2021. Don’t forget that the CCA rate on equipment purchases is 100% if you are needing to upgrade, can find suitable options and are looking for tax management strategies.

Now let the name calling begin…

[AlbertaFarmer5]

I do not want to debate the merits of any of this, merely want to try to do my part to get the word out for the good of the Western Canadian farm economy.

In the midst of all of the volatility in crop and input pricing, there are (at least) three critical management considerations that should not be overlooked.

The first two are related to AgriStability.

For crop producers, this is especially critical if you face large contract buybacks due to a lack of production. Commodity purchases are part of the allowable expenses so 70% of the buyback could be covered if you are in a claim position. A late enrollment option has been allowed and should be considered if you’re in this camp.

For livestock producers, cow/calf operators in particular, the reference margin limit removal couldn’t have come at a better time. You can now be covered up to 70% of your reference margin (average profit) instead of just 70% of your relatively low allowable expenses. This could be very significant if you had to purchase feed when not normally doing so. Again, may be wise to consider the late enrollment option.

(Note – these are simplified comments to keep them as short as possible)

A third point to consider is for the ones fortunate enough to have had a great year in 2021. Don’t forget that the CCA rate on equipment purchases is 100% if you are needing to upgrade, can find suitable options and are looking for tax management strategies.

Now let the name calling begin…

When does, or did the 100% CCA start? And does it apply to used as well?

[TechAnalyst]

It applies to purchases made on or after budget day, April 19, 2021.

There is nothing to suggest the purchase has to be a new piece of equipment, only that the CCA rate to be used on purchases is 100% and that the normal 50% rule for the year of purchase is waved.

One critical note, the wording says that it only applies to CCPC's - Canadian Controlled Private Companies.

I would hope that it applies to sole proprietorships and partnerships as well but that needs to be confirmed by your accountant. Otherwise it may influence the decision of whether to incorporate or not.

[the big wheel]

Bahahaha 0 for 4 farmers around me
Eligible for any payment from agristability
And the accountant said hasn’t come across
Any others as in NONE qualified. All qualified
For the bill though. Lmao
How much did you get paid to spout this
Horseshit? Your so far behind rhe reality
It’s not funny.

Why is being stupid in contracting eligible
And not interest expense etc?

[the big wheel]

And I spoke to the federal minister office
And they have asked why Saskatchewan
Continues to want this program when there
Is such low enrolment?

[TechAnalyst]

How much did you get paid to spout this
Horseshit? Your so far behind rhe reality
It’s not funny.

Why is being stupid in contracting eligible
And not interest expense etc?

I am paid nothing. I put it out expecting I would be abused for trying to be helpful.

I don't forward contract for fear of years like this but I am wise enough to realize some want or need to in an effort to have required cash flow at harvest. There are many harsh realities in this industry (that one should consider themselves lucky if they don't have to worry about).

Have a great day...

[the big wheel]

It applies to purchases made on or after budget day, April 19, 2021.

There is nothing to suggest the purchase has to be a new piece of equipment, only that the CCA rate to be used on purchases is 100% and that the normal 50% rule for the year of purchase is waved.

One critical note, the wording says that it only applies to CCPC's - Canadian Controlled Private Companies.

I would hope that it applies to sole proprietorships and partnerships as well but that needs to be confirmed by your accountant. Otherwise it may influence the decision of whether to incorporate or not.

Questions

if farm A had perfect weather 4 of last
5 years and farm b had drought for 3 and half years
Out of 5 and now both farms have a drought
Who’s getting a payment and who isn’t?
It a rhetorical question but please answer.

[the big wheel]

I am paid nothing. I put it out expecting I would be abused for trying to be helpful.

I don't forward contract for fear of years like this but I am wise enough to realize some want or need to in an effort to have required cash flow at harvest. There are many harsh realities in this industry (that one should consider themselves lucky if they don't have to worry about).

Have a great day...

If crap insurance was at market price would
All those contracts be covered? Or near covered
To the point it’s not an issue? And everyone would
Be covered not just those with good crops
4 out of 5 years?

And don’t act like the victim here or to be
So helpful every farm knows exactly what’s
Up with what. Your trying to sell something
That’s a flop for those that need something most
I suspect the feds are looking at something
More equitable if farmers revolt against This
Horseshit. That’s why rhe big con job to sign up
By sask crap insurance. They’d have to pay more out.

Something doesn’t smell right that there is such
A push for these contracts to be covered.
Who’s rhe biggest losers and into these
Contracts? Input capital Assiniboine capital
Who has our governments ear that much to
Change the program for this yet hit for
All the other losses farmers are suffering?
There now I’m a conspiracist!

[Guest]

Neither
None
Zero
Except with creative accounting

[the big wheel]

And for you livestock producers why
In the hell livestock is lumped in with
Grain is beyond me. If diversification was
Desired they would be separate. The price of
Grain is such a distortion to the value of your
Livestock that it’s just a moment of magic
That you might qualify for a payment.
And as tech analyst said you may be eligible
And that’s the whole problem with the program
Too many changing Variables. Only good
For the person plugging numbers at Melville
Or rhe accountant office. Sign up you might qualify you
Might not but we’ll be constantly auditing
You over and over.

Take for example barley for feed this month
It’s valued at 7 8 9 or 10 bucks so which
Value do we use? You might get a payment
On that value but next month it’s 5 so then what?
Or it’s 15 then what? Who *** knows because
Your old *** cow hit the shits and lost 200 pounds
So now does that loss help your payment or hurt
Your Payment. But next month you cleared the shits
Up and now she’s looking good fk me now you
Pay it all back or maybe not. Lmao!!!
But canola was 20 last month and it’s 15 this month
So now what? Who rhe fk knows? But again the
Numbers person in Melville working overtime
Trying to say this all makes sense.

[flea beetle]

Maybe some farmers should try tone down the expense side of the page, and live within their means. Then they wouldn’t have to ask/expect a handout from the government…

Does agristability work? No
Do I still enroll in it? No
End of story.


Crop insurance should be enough to get you through the bad times. If it isn’t, then you are living beyond your means. It is nobody else’s fault.

[bucket]

Maybe some farmers should try tone down the expense side of the page, and live within their means. Then they wouldn’t have to ask/expect a handout from the government…

Does agristability work? No
Do I still enroll in it? No
End of story.


Crop insurance should be enough to get you through the bad times. If it isn’t, then you are living beyond your means. It is nobody else’s fault.

I hear these arguments alot. Sometimes I agree sometimes I don't. Here is my take. Even if I was farming with the same equipment I started with, the input prices would still be kicking the shit out of my farm. Worked off the farm to get it started but eventually it needed my attention full time.

Would I be better off having the farm i started with and working off farm...maybe but the cost to family and the farm may not have been worth it.


Do I regret borrowing money, nope. Do i regret not buying some land that was offered..YUP.

Can you plan for a year like this as a young farmer, from my experience...no.

How many farms can sustain themselves through what is happening today. Very few.


And the fact that every generation on 5 generation farms have had government help proves it.

[jazz]

TA, its not worth triggering an audit to get a pittance of support from our commie govt.

I have been out agstab for more almost a decade with no plans to ever participate.

Dividend income, crop insurance, careful marketing, no gambling, no shiny iron lease rolls and live within our means. Thats our safety net.

[flea beetle]

I hear these arguments alot. Sometimes I agree sometimes I don't. Here is my take. Even if I was farming with the same equipment I started with, the input prices would still be kicking the shit out of my farm. Worked off the farm to get it started but eventually it needed my attention full time.

Would I be better off having the farm i started with and working off farm...maybe but the cost to family and the farm may not have been worth it.


Do I regret borrowing money, nope. Do i regret not buying some land that was offered..YUP.

Can you plan for a year like this as a young farmer, from my experience...no.

How many farms can sustain themselves through what is happening today. Very few.


And the fact that every generation on 5 generation farms have had government help proves it.

I’m 35 years old, with almost a years worth of grain deferred ahead and inputs pre-bought in December for a 4000+ acre farm. That gives me three years where I could make absolutely nothing, and still keep the lights on.

Did I get help from dad as a co-signer on my first loan? Yes

Did I get much other help from him? No other than using some of his equipment when I first started. But I would like to think that I returned that favour by letting him use some of mine in his final years of farming instead of updating his own.

I could have the newest equipment, and a fancy house, and the debt that comes along with it. But I chose to get ahead first, then reap the rewards afterwards.

Just which government help did my generation get again? This is a 3rd generation farm, where the first generation passed in his early 40’s with a mountain of debt.

[Lexion760tt]

So flea beetle u bought 4K acres and now ur in the positive position u are? What version of farming simulator are u playing because your math dosent add up.