lakenheath - reference margins

[furrowtickler]

Is CAIS primarily based on refernce margins over a 5 year period?

[lakenheath]

Depends what Province you are in.

Saskatchewan is based on 5 year average, but you drop the high and low year. So essentially it is a 3 year average of the remaining 3 years.

Alberta is based on a different system of reference margin. Haved done any Alberta CAIS applications.

[gvpoff]

Alberta has been trying a pilot program - you are allowed to use whichever is of the most benefit to you, the producer. Originally - the olympic average of the last five years was used (dropping the high & the low, & averaging the remaining three years). Then they decided to try averaging the last three years. They thought that it would benefit about 50% of the applications. No idea if this was so, but I do know it was of benifit to us. We had to sell down our cow herd during the year of the severe drought. It brought our average up once we were able to use that year. And no, we did not lie about anything on our application, nor did we form a corporation to separate the grain farming from the cattle. Just good old honest figures, without trying to "farm" the program!

[furrowtickler]

This is why most of Sask farmers are getting squat. The last 5 years for most farms have been the worst since the late 30's. 5 year everage of 0 is 0, thus the problem Saskfarmer3 is pointing out. We will never get paid assistance based on these programs. Only those who had good referance margins will get paid on a year or maybe two of bad luck. Money is again going to those who do not realy need it in most cases. My Dad farmed here for 40 years and never had more than 2 years back to back bad. The best accountant in the west will not get most of us a cais payment period. Our 5 year ave/ac from 96 to 2000 was almost tripple that of the last 5 years, but apparently it does not matter. Those were average years for us, 96-98 ave., 99 good 2000 bad = ave. Since 99 we are 50 to 90% below our average income/acre.
BTW, this is how cais works for the rest of us.

[farmers_son]

In Alberta we have the choice of using the Olympic average or the last three years. Your CAIS return will be calculated using which way gives you the best result.

[silverback]

grains and oilseeds payment also based on a 4 year average 00 - 04.

A benefit to those that had good luck in those years.

[lakenheath]

Furrowtickler,

You are 100% correct. If you don't have a good reference margin, it hurt you. I guess one solution would be to go back 10 years. An Amercian based subisidy system would not have helped the farmers who faced frost and drought. You still need the bushels and the quality to milk the American system.