CAISP

[rsomer]

Could someone provide an financial example of how the new CAISP program will work for a cow calf producer selling calves this fall. How much would have to paid in, does the program protect against negative margins, and so on would be of great interest. I have checked out the Agriculture and Agri-Food Web Site but they provide graphs with no dollar amounts. I am needing to know what kind of dollar amounts I will be looking at.

Thank you.

[graham_gilchrist]

Here is what I know so far. Based on the examples from APF, $100,000 of production reference margin will, secured at 100%, will require on deposit $26,000.00.

You have a choice of securing 100%, 85%, or 70% (minimum). Based on the 70%, you would need $14000 on deposit. Securing the next $15,000 (85%) would require an additional $4500 on deposit. The last $15000 (100%) would require the $7500 on deposit.

Your Production Reference Margin is calculated as:
Qualifying commodity revenue Non-qualifying commodity revenue Rebates for eligible expenses (Total A Total B Line 9574)

minus

Expenses directly relating to the growing of the commodity.

The link to the list is here. http://www.agr.gc.ca/puttingcanadafirst/index_e.php?section=brm_gre&group=docu&page=brm_gr e_fsfr

Going through the formula will tell you what margin you would be securing.

gg

[graham_gilchrist]

Take a look at the site again. They have installed both a web based and excel sheet to help you calculate.