Ontario's farmers work hard in an increasingly complex and demanding environment. The agricultural industry requires commitment, an entrepreneurial spirit and an understanding of possible risks. No matter how stable an operation is, sometimes the unexpected happens.
It’s renewal and application time for AgriStability. The program covers large declines in income caused by adverse market conditions, production losses or increased production costs. Things like flooding, increased input costs, and extreme drops in market demand and prices can have a detrimental effect on a farm. If a producer’s net income falls below 70 per cent of their average net income, AgriStability helps to offset the difference. Most importantly, AgriStability provides peace of mind when you need it most.
Example 1: How AgriStability responded to decreased market prices
Ontario livestock producers face many challenges, often beyond their control. Farm income can fluctuate due to things like increased input costs, disease and extreme drops in market demand and prices.
Figure 1 - Cattle & hog sector payments. ($) Millions
In the fall of 2015, cattle and hog market prices fell. At the same time, feed and replacement costs went up. This led to large income declines because producers were faced with higher expenses and were making less money. For many, this had an impact on their operations.
AgriStability responded with a significant increase in payments to cattle and hog producers in 2015 and 2016. See the graph in Figure 1 that shows how AgriStability responded.
Example 2: How AgriStability responded to increased costs
The number of greenhouses in Ontario is growing faster than any other province in the country, especially in southwestern Ontario. According to the 2016 Census of Agriculture, there was a nearly 30 per cent increase in the area dedicated to greenhouse vegetables in Ontario from 2011 to 2016. During this time, Ontario added 25.7 million square feet of greenhouse vegetable production.
Figure 2 - Greenhouse sector payments. ($) Millions.
Due to the nature of their operations, greenhouse growers are especially impacted by energy costs. Because of this, AgriStability payments increased for greenhouse growers over the past three years. Many greenhouse growers have been experiencing large income declines because of the increased costs – AgriStability was there to help. See the graph in Figure 2 that shows how AgriStability responded.
Contact an AgriStability specialist today
Agricorp has different specialists for different programs. Producers who have questions about coverage or program details should call Agricorp at 1-888-247-4999 to speak with an AgriStability specialist.
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