A series of risk management programs for farming, agri-food and agri-based products industry are now available to replace the coverage previously provided under the Harmonized Canadian Agricultural Income Stabilization (HCAIS) program. In particular, these programs include the following programs:
- AgriStability program: It is a margin-based program that provides income support when a producer experiences larger income losses. Payments are based on a decline in your farm’s current year margin compared to an average historical margin.
- AgriInvest program: it is a program made of savings accounts for producers that provide flexible coverage for small income declines and support investments that help mitigate risks or improve market income. Benefits are calculated on the basis of Allowable Net Sales (ANS).
To know more on the different farming income programs offered, consult the RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide income tax guide
Statement of farming revenue and expense for the AgriStability and AgriInvest programs
Completed forms must be sent to:
Winnipeg Tax Centre
66 Stapon Road
Winnipeg, MB R3C
3M3
If the taxpayer is self-employed and runs a farm, he must provide an accurate statement of the operation’s activities. To participate in the AgrStability program or the AgriInvest program, or both, he must complete Form T1273 that will be used for income tax and programs purposes. The form is designed based on the differences between the information that he must provide the AgriStability and AgriInvest programs administration and the Canada Revenue Agency (CRA).
The first part of Form T1273, Statement A - Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals (Jump Code: 1273) identifies and provides a profile of the participant. The second part is used to identify the farming operation, to enter the income earned from the products and other income as well as qualifying and non-qualifying expenditures.
In the event that the taxpayer runs more than one farming business, Form T1274, Statement B -Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations must be completed for the second business and subsequent businesses.
The program can distinguish a qualifying amount from a non-qualifying amount for AgriStability and AgrInvest programs purposes, in accordance with the various provinces.
See Also