From our Delta, BC offices we see a lot of agriculture business – literally. We help a number of local producers with their bookkeeping, reporting and financial strategy. One of the most important specialty topics we are asked to consult on is the timing and implementation of government crop insurance programs.
AgriInvest and AgriStability– What’s the difference?
To help agricultural producers protect their margins from small declines, the AgriInvest program lets producers deposit up to 100% percent of their Allowable Net Sales (ANS) into an AgriInvest account and receive a matching government contribution for the first 1.0%.
AgriStability helps stabilize farm income by managing the risk of large income declines, (namely when your margin falls below 30% lower than your past 5 year average).
Knowing how these two programs work together with other crop insurance is important in order to keep your agricultural operation stable and competitive.
AgriStability, AgriInvest or Crop Insurance?
Setting aside income for a rainy day (or non-rainy season) can be prudent. And participating in the AgriStability program is also a smart way to protect your operation. But did you know you should ALSO have crop insurance? So when is it better to make an insurance claim vs. registering a claim under the government programs? What are the tax implications? These are just a few of the questions your PVS Buttar Chartered Public Accountant can help answer.
Get the right accounting partner for your agricultural business.
If you would like to know more, please contact PVS Buttar for a free accounting consultation. We believe in the strength and ingenuity of local producers, and want to help you succeed. After all, we are a growing BC business, too.
