AgriStability and AgriInvest Program 2010 Harmonized Guide for Corporations / Co-operatives and Special Individuals

AgriStability

Generally, you are eligible to participate in AgriStability if you meet all of the following criteria for the 2010 program year:

• You file a Canadian Income Tax return reporting eligible farming business income (or loss). If you are a Status Indian farming on a reserve in Canada and are exempt from filing an income tax return, please refer to the information on this page;
• You have completed a minimum of six consecutive months of farming activity;
• You have completed a production cycle; and
• You met all program requirements by the established deadlines.

Note: The requirements to complete six consecutive months of farming activity and a production cycle may be waived by the administration if they could not be completed for reasons beyond your control.

AgriInvest

Generally, you are eligible to participate in AgriInvest if you meet all of the following criteria for the 2010 program year:

• You file a Canadian income tax return reporting eligible farming business income (or loss). If you are a Status Indian farming on a reserve in Canada and are exempt from filing an income tax return, please refer to the information on this page;
• You met all program requirements by the established deadlines.

Other Eligibility Information

Crop Share: Tenants in a crop share are eligible to apply for AgriStability and AgriInvest. Landlords are eligible if the arrangement constitutes a joint venture.

See page 12 for more information on landlords and tenants.

Status Indians: You are eligible to participate if you carry on the business of farming on a reserve in Canada, and are exempt from filing income tax returns. In order to participate, you must submit the information you would otherwise have reported for tax purposes for the program year and, for AgriStability purposes, the reference years.

Status Indians are deemed to have a December 31 fiscal year-end, and are required to provide a Social Insurance Number (SIN) or business number.

For more information on how to submit your form as a Status Indian, refer to the information on page 2 or contact the administration.

General Information

If you have one farming operation (a single farm or a partnership): complete the Statement A.

Member of a Partnership: Each partner in a partnership must complete and submit separate AgriStability and AgriInvest program forms, reporting 100% of the partnership's income and expense information.

Multiple Operations: If you are involved in multiple farming operations, complete a Statement A for one operation and a separate Statement B for each additional operation. Assign an operation number to each additional operation.

If you require a Statement B but did not receive one in your package, call the administration toll-free at 1-866-367-8506.

Important Filing and Deadline Information for AgriInvest and AgriStability

To participate in AgriInvest, you must submit the Statement A to the Winnipeg Tax Centre by September 30, 2011 (except Status Indians who submit their forms directly to the administration). Late filed AgriInvest forms will be accepted until December 31, 2011. However, your maximum matchable deposit will be reduced by 5% for each month (or part of a month) your form is received after the initial deadline of September 30, 2011. Forms will not be accepted after December 31, 2011.

To participate in AgriStability, you must submit the Statement A to the Winnipeg Tax Centre by September 30, 2011 (except Status Indians who submit their forms directly to your administration). Late filed AgriStability forms will be accepted until December 31, 2011. However, your AgriStability benefits will be reduced by $500 for each month (or part of a month) your form is received after the initial deadline of September 30, 2011. If the late-filing penalty is more than the payment amount, your payment will be reduced to zero. The rest of the reduction will not be applied to any other program year. Forms will not be accepted after December 31, 2011.

If you received an AgriStability Interim Payment or a Targeted Advance Payment for the 2010 program year, you must submit your 2010 AgriStability form to the Winnipeg Tax Centre by December 31, 2011 (except Status Indians who submit their forms directly to the administration). Failure to submit your 2010 AgriStability form by the deadline will put you into an automatic overpayment position and you will be required to repay any benefits you received through the Interim Payment or Targeted Advance Payment.

Note: If a deadline falls on a Saturday, Sunday, or statutory holiday, you have until the next business day to submit the form.

AgriInvest Benefit Calculations

The AgriInvest program is a voluntary program that provides coverage for small income declines and supports investments that help mitigate risk or improve market income. You can deposit money annually into an AgriInvest account and receive matching government contributions. You can withdraw funds when you need them. AgriInvest deposits are based on your Allowable Net Sales (ANS). ANS is your total allowable Commodity Sales and Program Payments minus your total allowable Commodity Purchases and Repayment of Program Benefits.

Once the administration has calculated your ANS using the information on your Statement A, you will receive a Deposit Notice outlining your deposit options.

AgriStability Benefit Calculations

AgriStability benefits are based on margins. A margin is the difference between your allowable income and your allowable expenses. Generally, an AgriStability payment is triggered when your margin in the program year declines more than 15% compared to your average margin over the reference years. For more information on margins, and how AgriStability payments are calculated, see the AgriStability Program Handbook.

After processing your forms, your administration will send you a Calculation of Program Benefits (COB). If you had a margin decline, you may be eligible to receive government benefits, which will be paid to you directly.

AgriStability Program Fee

AgriStability participants are required to pay an annual fee to participate in the program. The amount of the fee is $4.50 for every $1000.00 of contribution reference margin protected (based on coverage of 85% of your margin). There is a minimum fee of $45.00.

For more information on program fees and participation rules, refer to your Enrolment Notice or see the AgriStability Program Handbook.

Administrative Cost Share (ACS)

There is an annual charge of $55 per AgriStability participant for administration costs payable to your administration. Contact your administration for details on how to pay your AgriStability ACS.

Participant Name and Address

Enter your name and address. In accordance with Treasury Board Policy, program benefits must be mailed directly to the participant, and not to a form preparer or other representative.

Contact Person

Complete this area if someone else (such as your spouse, common-law partner, or accountant) has your consent to provide or ask for more information concerning the AgriStability and AgriInvest programs on your behalf. The administration will communicate with your contact person as the first point of contact. Written correspondence will be sent to you and your contact person.

Enter complete contact person information, including first and last name of your contact person, their business name (if applicable) and their daytime phone number.

You must provide complete contact person details each time you submit a form. To ensure the administration has the most current contact person information, any contact person information you previously provided will be replaced with new information you include on this form. Contact person details will not be carried forward from a previous year. If you leave this area blank, we will contact you directly if we require additional information.

By providing a contact person's name, you are authorizing both the AgriInvest and AgriStability programs to receive information from, and to disclose information to, the contact person, and to make changes to your forms as directed by the contact person.

Indicate if you want a copy of your Calculation of Program Benefits (COB) automatically mailed to your contact person.

Province/Territory of Main Farmstead

Enter the province/territory where all or the majority of the gross farming income was earned over the previous 5 years. For more information on determining the province of main farmstead and multi-jurisdiction farms, please see the program handbooks.

Deceased Participant

If the participant is deceased, enter the date of death. If farming business income or loss was reported on the deceased participant's T1 tax return, prepare the program forms:

• in the name of the individual, noting "Estate" in the name and address area;
• using income/expenses reported on the individual's final 2010 T1 tax return(s).

Attach a copy of the individual's death certificate and the probated will (or letters of Administration) to the AgriStability and AgriInvest Additional Information and Adjustment Request Form and send it to the administration at the same time you submit your Statement A. This form can be found in the middle of this guide along with the Statement A.

If the farming business was continued by the surviving spouse (or a spousal trust), prepare an additional program form:

• in the name of the surviving spouse or spousal trust;
• using the income/expenses from the spouse's 2010 T1 tax return.

Production Cycle

Indicate whether you have completed a production cycle on at least one of the commodities you produce. If "No", you must have been prevented from completing a production cycle due to disaster circumstances in order to be eligible for AgriStability.

You do not need to complete a production cycle to be eligible for AgriInvest.

Federal Public Office Holder or Employee of Agriculture and Agri-Food Canada (AAFC)

If the participant or any party involved in the preparation of this form is a current or former federal public office holder or employee of AAFC, answer "yes" to this question. If the participant is a corporation, co-operative/ commune, or a partner in a partnership, indicate "Yes" if one or more shareholders, members, or partners are a current or former federal public office holders or employees of AAFC.

Location Of Main Farmstead

A comprehensive list of provincial jurisdictions (Rural Municipalities, Counties, Districts, etc.) can be found in the Regional Code List.

Note: Producers in Newfoundland and Labrador are not required to complete this section.

Combining Under the AgriStability Program

For AgriStability purposes, it may be necessary to combine operations that report separately for tax purposes under the whole farm approach. This approach ensures only actual income declines, and not financial accounting procedures, trigger a payment. Generally, you should answer yes to this question if you are applying for an operation that:

• is not legally, financially, or operationally independent from another one; or
• has engaged in significant transactions not at fair market value.

Individuals or members in a partnership do not need to be combined. Further details on combining or Whole Farm Approach are available in the AgriStability Program Handbook.

Operations that need to be combined cannot be processed until the necessary information from all operations is received.

Fiscal Period

Enter the operation's fiscal period. Report the year, month and day of the beginning and end of the farming operation's taxation year. The 2010 fiscal period must end in 2010.

Method of Accounting

If you file on the cash basis with the CRA, you must also file on the cash basis for the AgriStability and AgriInvest programs. Transfer the income and expenses from your Statement of Farming Activities onto the form as per the instructions in the guide.

If you file on the accrual basis with the CRA, you must also file on the accrual basis for the AgriStability and AgriInvest programs. Transfer the income and expenses from your Statement of Farming Activities onto the form as per the instructions in the guide. You must also report the change between opening and closing inventory for each individual income and expense item.

Indicate if you were involved in any of the Following for this Particular Operation:

• A member of a feeder association
• Crop share (landlord)
• Crop share (tenant)

Point of Sale Guidelines

Because AgriInvest benefits are based on allowable net sales (ANS), it is necessary to determine the point at which the sale occurs. For AgriInvest purposes, the point of sale is determined by the following criteria:

• It is separate and identifiable from other producers' commodities;
• You produce it on your farm;
• You bear full risk for it; and
• You have a separate billing or accounting transaction that clearly shows the commodity sales value and any deductions from that value.

The point of sale occurs when your commodity is no longer identifiable as your own, and you are no longer at risk for the value of the commodity.

If your commodity sales meet these point of sale criteria, report the code, name, and gross sale amount of each commodity on the form.

Example:
You have seed potato sales of $50,000.
Report:
147 potatoes $50,000

If you received a cheque for a commodity sale that is net of expenses that are recognized in the calculation of farming income (or loss), report the sale to include the full value of the commodity.

Example:
Your receipt from the processor shows gross apple sales of $10,000, and pack and sell costs of $1,500, leaving you a net cheque of $8,500. Report $10,000 as your gross apple sales and $1,500 as an expense on line 9836, Commissions and levies.

If your commodity sales include amounts (recognized in calculating farming income or loss) that were incurred after the point of sale, you must adjust your sales to reflect the value of the commodity at the point of sale. Report any amounts incurred after the point of sale on line 575, Point of Sale Adjustments. This will ensure that your allowable net sales (ANS) are calculated correctly.

Example:
Your cash ticket from the elevator shows gross wheat sales of $7,000, freight charges of $1,500 and elevation charges of $300. Report the gross wheat sales of $7,000 as income. Report the freight charges of $1,500 and elevation charges of $300 as a point of sale adjustment on line 575 under Commodity Purchases and Repayment of Program Benefits (not under Allowable Expenses) because these expenses were incurred after you delivered your grain to the elevator (ie. after the point of sale).

While point of sale adjustments are not a commodity purchase, reporting them in the Commodity Purchases and Repayment of Program Benefits section will ensure your allowable net sales (ANS) are calculated correctly for AgriInvest purposes.

Payment in Kind

If you give a commodity to another person as a payment-in-kind, report the value as a sale using the code for the commodity. If the payment was made to settle a business expense, also report the value as an offsetting expense.

Example:
You owed your landlord $1,000 for rent. Instead of cash, you pay him by giving him $1,000 worth of seed. Report the fair market value of the seed crops ($1,000) that you gave the landlord as a commodity sale. Report the $1,000 on line 9811 as a rental expense. We consider that you received rent in exchange for the seed.

Crop Share

Tenants in a crop share are eligible to apply for AgriStability and AgriInvest.

Landlords are eligible to apply for AgriStability and AgriInvest if the crop share arrangement constitutes a joint venture.

For AgriStability program purposes, a crop share arrangement qualifies as a joint venture if the landlord's share of the allowable expenses (as reported with the CRA) reasonably approximates their share of the related allowable income.

For AgriInvest program purposes, a crop share arrangement qualifies as a joint venture if the landlord's share of eligible purchases (as reported with the CRA) reasonably approximates their share of the related allowable income.

Generally for AgriInvest and AgriStability eligible tenants and landlords must report only their respective shares of the allowable income and expenses.

Example 1:
You are a tenant in a crop share and take 60% of the income. Report 60% of the gross sales amounts under Commodity Sales and Program Payments.

Example 2:
You are a landlord where your crop share arrangement constitutes a joint venture. You take 40% of the income and pay 40% of the allowable expenses. Report 40% of the gross sales amounts under Commodity Sales and Program Payments. Report your 40% share of expenses under Allowable Expenses.

However, if you are a tenant and for tax purposes your gross sales must include your landlord's share of the crop, report your landlord's share as a commodity purchase using the code for the commodity, under Commodity Purchases and Repayment of Program Benefits. This will ensure your program benefits are calculated correctly.

Example:
You are a tenant in a crop share. You sell the crop and then pay the landlord 40% of the income from the sale. Report 100% of the gross sales amount under Commodity Sales and Program Payments and 40% of that amount under Commodity Purchases and Repayment of Program Benefits.

If you have income from crop share in addition to your sole proprietorship or entity, combine the totals from both onto one Statement.

Partners in a Crop Share

If you are in a crop share and you have income from a crop share that is separate from the partnership, complete a Statement A for one of the operations and a Statement B for the other. Otherwise, we will apply the partnership allocation to the crop share income.

Commodity Futures

Income transactions involving commodity futures may be reported as a commodity sale for AgriStability and AgriInvest purposes if:

• you reported the futures transaction as farming income (loss) for income tax purposes;
• the transaction involves a primary agricultural product that you produced on your farm;
• the transaction is considered a hedging strategy, not speculation.

If your futures transactions meet the above criteria, then report them as follows:

• For futures transactions reported as a gross amount, report the income as a commodity sale using the code for the commodity. Report related purchases as a commodity purchase using the code for the commodity.
• For futures transactions reported as a net amount, report the net gain as a commodity sale using the code for the commodity. Report the net loss as a commodity purchase using the code for the commodity.

Report income from futures transactions involving commodities which you did not produce or were not considered a hedging strategy as other farming income on 9600. Report losses from futures transactions involving commodities which you did not produce or were not considered a hedging strategy as a non-allowable expense, on line 9896.

Cash Advances

Cash advances, as administered under the Agricultural Marketing Programs Act, are treated as a loan and therefore should not be reported as income for both income tax and AgriStability and AgriInvest purposes. However, for the fiscal period in which the sale occurs, include the full amount from the sale of your crops in your income.

Tree Production

Allowable items: Allowable tree production (excluding the non-allowable items listed below) must be generated through farming activity to be allowable for AgriStability and AgriInvest.

Farming activity includes the planting, nurturing and harvesting of trees, with significant attention paid to managing the growth, health, and quality of the trees. This activity can involve the regular seeding and harvesting of trees, shrubs, herbaceous perennials, or annuals, including ornamental, fruit, and Christmas trees.

These operations incur normal input and harvesting costs and the crop is considered an agricultural commodity. The income and expenses associated with these commodities is allowable and should be included as inventory on your AgriStability form.

Non-allowable items: Income, expenses, and inventories related to the production and/or harvesting of trees for use as the following are non-allowable for AgriStability and AgriInvest:

• firewood
• construction material
• poles or posts
• fibre, pulp and paper
• trees and seedlings destined for use in reforestation

Income from non-allowable items listed above must be reported as other farming income on line 9600 and will not be included in AgriStability or AgriInvest calculations, regardless of the activities used to produce them.

Woodlots

If you operated or regularly harvested a woodlot, include the sale of trees, lumber, logs, poles, or firewood in your income. This income is non-allowable income for AgriStability and AgriInvest program purposes, but it must be reported as a commodity sale, using code 259.

Livestock Producers

Include any insurance payments received for losses of livestock as part of the sale amount using the applicable livestock code.

If you received a Bovine Spongiform Encephalopathy (BSE) Recovery Program payment, report the amount you received using code 468.

Income Generated From the Use of Commodities

Generally, you include income generated from the use of commodities with commodity sales. For example, report income from stud fees with horse sales.

However, income generated from pollination services should be reported using code 376.

Custom Feedlot Operators

Custom feedlot operators are eligible for AgriInvest based on the value of allowable commodities they produce and feed to custom-fed livestock.

If your custom feeding invoices are itemized:

• Report allowable feed and protein supplements as a prepared feed sale under Commodity Sales and Program Payments using code 243;
• Report other charges itemized under Commodity Sales and Program Payments using code 576.

If your custom feeding invoices are not itemized:

• Report the total amount invoiced as a prepared feed sale under Commodity Sales and Program Payments using code 246. Seventy percent (70%) of this amount is included in the calculation of your ANS, as an allowable commodity sale.

PMU Contract Cancellation Income

Income received from the buy-out of PMU contracts is allowable to the extent it is paid in lieu of the commodity income otherwise receivable under the contract. Penalty fees and other compensation that may be paid in addition to the amount in lieu of commodity income are non-allowable.

Report amounts received for your Collection Agreement, Herd and Health payments, West Nile Reimbursement and Equine Placement Fund as allowable income using code 322. Report amounts received for the Rancher payment, Business Planning Subsidy and capital costs as other farming income on line 9600.

Prescribed Drought Region (PDR)

Report the income you received from the sale of breeding animals as a commodity sale using the code for the commodity. Report the amount you deferred as a commodity purchase using the appropriate code from the list below.

When reporting the income that you deferred in a previous year, report the amount as a commodity sale using the appropriate code from the list below.

Canadian Food Inspection Agency (CFIA) - Destroying livestock

Report the full amount you received under the Health of Animals Act for destroying animals as a commodity sale (using codes 469, 479, 587 or 588 - CFIA payments). See further on this page for an explanation on how to report your CFIA payment using the CFIA codes. Report the amount of this payment you chose to deduct as a commodity purchase using one of the codes from the "PDR Deferred/CFIA Livestock Codes" chart on this page.

When reporting the amount you deducted in the previous year as income, report the amount as a commodity sale using the appropriate code from the "PDR Deferred/CFIA Livestock Codes" chart.

Insurance Proceeds for Allowable Items

Report insurance proceeds for allowable items such as fertilizers, chemicals, fuel, etc. using code 406.

Program Payments

Treatment of program payment income is determined by the type of loss you were compensated for.

For AgriInvest, your ANS only includes program payments that compensated you for the loss of an allowable commodity (eg. AgriInsurance / production or crop insurance). For AgriStability, your program year margin only includes payments that compensated you for the same type of loss covered under AgriStability.

Using Program Payment List A, found on page 37 and Program Payment List B, found on page 39 of this guide, report the name, program payment code, and the amount of each program payment found in the Program Payment Code Lists under Commodity Sales and Program Payments.

If the program payments on your Statement of Farming Activities have been reported net of expenses that are recognized in the calculation of farming income (loss), report the full amount of the payment.

Example:
You were entitled to a payment of $6,000 as proceeds from a hail insurance program for your wheat crop. The program deducted $2,000 in premiums, so the net cheque was for $4,000. Report $6,000 as a Crop/hail insurance program payment for grains, oilseeds, and special crops, using code 401. Report $2,000 as an allowable expense on line 9665, Insurance premiums (crop or production).

Report payments from programs that are not listed in Program Payment List A or B, on line 9540, Other program payments.

Canadian Food Inspection Agency (CFIA)

Only the portion of a CFIA payment that compensated you for the loss of an allowable commodity is included in the ANS calculation for AgriInvest.

Report the portion of a CFIA payment that compensated you for the loss of an allowable commodity using code 469, CFIA Payments for allowable commodities.

Report the portion of a CFIA payment that compensated you for the loss of a supply managed commodity using code 479, CFIA Payment for supply managed commodities.

Report the portion of a CFIA payment that compensated you for the loss of a commodity that is non allowable for AgriStability or AgriInvest using code 587, CFIA payments for non allowable commodities. For example, you would use this code if you received a CFIA payment to compensate you for the loss of trees destined for use in reforestation.

Report the portion of a CFIA payment that compensated you for costs not directly related to a commodity loss, using code 588, CFIA payments for other amounts.

Payments from AgriStability and AgriInvest Programs

For income tax purposes, the government contributions from AgriInvest payments and payments from the AgriInvest Kickstart program are considered investment income and should not be reported on this form.

Payments from AgriStability are considered farming income. Report the amount you received for AgriStability as Business Risk Management (BRM) and Disaster Assistance Payments, on line 9544.

Inventory Adjustments

Do not include current year inventory adjustments (mandatory or optional) as income. Report them on lines 9941 and 9942 on page 4 of the Statement A.

Other Farming Income

Report AgriInsurance (production or crop insurance) payments using the codes found in Program Payment List A on page 37. Do not report crop/production insurance payments on lines 9540 or 9544.

Commodity Purchases and Program Repayments

Use the Commodity List at the end of this guide to report the code, name and the purchase amount of each commodity bought at any stage of maturity. This includes feed, seed, plants, transplants, livestock, and marketable products. For example, if you are an apple producer replacing damaged or dead trees, report apple tree purchases using the code for apples. If you are buying trees to expand an orchard, this amount is a capital expenditure and is not reported as a commodity purchase.

Generally, you include expenses incurred from the use of commodities with the commodity purchases. For example, report stud fees with horse purchases.

However, pollination fees should be reported using code 376.

Report the repayment of a program benefit as a purchase using the code for the program.

If you received an overpayment from any of the programs listed on lines 9540 and 9544, report any amount you repaid on line 9896, Other (specify).

If you made a payment in kind for a farming business commodity purchase, deduct the value of the payment as a purchase. For more details, see the definition of payment in kind on page 12.

Tenants: If the gross sales you reported with the CRA include your landlord's crop share, report the landlord's share of the sale as a commodity purchase.

Water purchases: If you have an expense for the purchase of water that is used in the production of a commodity and it has not been included in your municipal taxes, do not report this expense in commodity purchases. Report this expense on line 9662, Fertilizers and Soil Supplements even if the water was used for livestock.

Livestock Owners and Custom Feedlot Operators with Prepared Feed Purchases

If your purchase invoices of prepared feed are itemized by ingredient:

• Report allowable commodities (such as grains, forage, oilseeds) and protein supplements as an allowable commodity purchase using code 046;
• Report other charges itemized separately (such as minerals and salts) as a commodity purchase using code 570.

If your invoices of prepared feed are not itemized by ingredient:

• Report total purchases as a commodity purchase using code 571. Sixty-five percent (65%) of this amount will be included in the calculation of your ANS, as an allowable commodity purchase.

Livestock Owners with Custom Feeding Expenses

If your purchase invoices are itemized by ingredient:

• Report allowable commodities (such as grains, forage, oilseeds) and protein supplements as an allowable commodity purchase using code 577; and
• Report other charges itemized separately (such as minerals and salts) as a commodity purchase using code 572.

If your purchase invoices are not itemized by ingredient:

• Report total purchases as a commodity purchase using code 573. Seventy percent (70%) of this amount will be included in the calculation of your ANS, as an allowable commodity purchase.

Ranch Fur Operators with Prepared Feed Purchases

If your purchase invoices of prepared feed are itemized by ingredient:

• Report allowable commodities and protein supplements using code 046.
• Report the remaining expenses as a commodity purchase using code 310.

If your purchase invoices of prepared feed are not itemized by ingredient:

• Report total purchases as a commodity purchase using code 574. Twenty percent (20%) of this amount will be included in the calculation of your ANS, as an allowable commodity purchase.

Livestock Insurance Premiums

Report your premiums for private livestock insurance on line 9953, Private insurance premiums for allowable commodities.

AgriStability Program - Allowable Expenses

AgriStability Program - Non Allowable Expenses

Line 9959 - Gross farming income

Report the gross farming income from the operation's Statement of Farming Activities.

Line 9968 - Total farming expenses

Report the total farming expenses from the operation's Statement of Farming Activities.

Line 9969 - Net farming income (loss) before adjustments

Report the net farming income (loss) before adjustments from the operation's Statement of Farming Activities.

Line 9941 - Optional inventory adjustments/current year

Report the total of any current year optional inventory adjustments from the operation's Statement of Farming Activities.

The optional inventory adjustment applies to you only if you use the cash method of accounting for income tax.

Line 9942 - Mandatory inventory adjustments/current year

Report the total of any current year mandatory inventory adjustments from the operation's Statement of Farming Activities.

The mandatory inventory adjustment applies to you only if you use the cash method of accounting for income tax.

Do not include accrual inventories from your financial statements here. See "Method of Accounting" on page 11.

Line 9944 - Net farming income (loss) after adjustments

Report the net farming income (loss) after adjustments from the operation's Statement of Farming Activities.

Line 9946 - Net farming income (loss)

Report the net farming income (loss) from the operation's Statement of Farming Activities.

Shareholder/Member Information

Corporations, use your Statement of Share Capital to complete the following.

Name of Shareholder/Member

Report the name and Participant Identification Number (PIN) of the shareholder/member or group of related shareholders/members who have controlling interest in the corporation. When a corporation is a shareholder, report the names and PINs of the participating shareholder or group of related shareholders that has controlling interest in that corporation. Attach a separate sheet if necessary.

Partnership Information

Complete this section only if the operation is a partnership.

Partnership Name

Report the partnership's name.

Partners' Names

Report the first and last name of each individual, starting with your own. If a corporation or co-operative is a partner, report the name of the corporation or co-operative.

If another partnership is a partner, report the names of the partners in that partnership.

Percentage (%) share

Report each partner's percentage share based on the allocation of partnership net income/loss reported with the CRA (excluding Status Indians) unless:

• interest has been paid on partner's capital, or
• salaries have been paid to partners.

In these cases, exclude these amounts in determining the partner's percentage share.

If another partnership is a partner, determine the beneficial ownership of each individual member.

Example:
The Smith & Smith Partnership owns 60% of the Sunny Skies Partnership. Since Fred Smith Ltd. and Mary Smith Ltd. each own 50% of the Smith & Smith Partnership, each corporation has a 30% beneficial ownership in the Sunny Skies Partnership.

AgriStability and AgriInvest Participant Identification Number (PIN)

Report the PIN, if available, for each partner. If your partner did not participate in AgriStability or AgriInvest, but previously participated in CAIS or NISA, this number will be the same as their PIN in either of those programs.

AgriStability Program Codes:

When completing sections 7 through 12 refer to the following code lists:

• Inventory Code List: Used to identify codes and descriptions for commodities listed in sections 7 and 8 of the form. These lists begin on page 40 of this guide.
  
  
• Units of Measurement Code List: Used to fill in column "c" of the Crop Inventory Valuation and Productive Capacity (section 8). This list can be found on page 68 of this guide.
• Expense Code List: Used to fill in Purchased Inputs (section 10) and Accounts Payable (section 12) of the form. This list can be found on page 68 of this guide.
  
  
• Commodity List: Used to identify codes and descriptions of commodities for sections 10, 11, and 12. This list begins on page 33 of this guide.
  
  
• Program Payment Lists: Used to identify codes and descriptions for Deferred Income and Receivables (section 11). This list begins on page 37 of this guide.
  
  
• Productive Capacity List: Used to identify codes and the units required for reporting "other" commodities that are not listed on the productive capacity (Section 9) of the Statement A. This list begins on page 69 of this guide.

End of Year Prices (EYPs) for Commodities marked with an "X" on the Inventory Code List:

You are not required to provide EYPs in sections 7 and 8 of the form for commodities that are marked with an "X" on the Inventory Code List in your province or territory.

You will find the EYPs in the AgriStability Price List, for the commodities listed in the Inventory Code List. The administration will use these EYPs when processing your forms.

The AgriStability Price List will not be automatically mailed to program participants. In keeping with the Government of Canada's initiative to reduce paper consumption, we are working to reduce our impact on the environment and save money by offering more information online. The AgriStability Price List is available upon request or can be downloaded from the administration's web site.

If you do not feel that the EYPs in the AgriStability Price List are appropriate to your farm, you may use EYPs other than those in the AgriStability Price List only if you can demonstrate that:

• your commodity is substantially different than the commodity listed on the published price list; or
• your method of marketing the commodity was substantially different from the general marketing practice reflected in the published price list.

In either of these cases, you may use EYPs based on sales or purchases of the specific commodity in your name and occurring within 30 days either before or after your fiscal year end. For your own EYPs to be accepted, you must send copies of receipts and/or supporting documents that substantiate these EYPs to your administration using the AgriStability and AgriInvest Additional Information and Adjustment Request form. This form and any supporting documents should be sent to your administration at the same time you submit your form, or within your adjustment time frame. Please see the AgriStability Program Handbook available from your administration or from the program Web site, for information on adjustments.

The administration reserves the right to determine whether submitted EYPs are reasonable for all of your inventory.

End of Year Prices (EYPs) for Shaded Commodities listed on the Inventory Code List:

You must provide EYPs for both the Crop and Livestock Inventories that are shaded for your province/territory listed in the Inventory Code List. The EYP you provide for your commodity must be based on the estimated market prices at year end. Although it is not mandatory to provide documentation supporting your prices for these commodities, doing so will assist the administration to process your forms and will increase the likelihood of your price being accepted. Supporting documentation includes:

• receipts from sales or purchases of the commodity; or
• commodity-specific price information from appropriate commodity marketing agencies.

If you choose to send in supporting documentation, it must be submitted to your administration using the AgriStability and AgriInvest Additional Information and Adjustment Request form. This form and any supporting documents should be sent to your administration at the same time you submit your forms to the Winnipeg Tax Centre (or to the administration if you are a Status Indian) or within your adjustment time frame. Sending the information in at the same time you submit your form ensures that your administration has the information at the time your program form is processed. The administration reserves the right to determine whether submitted EYPs are reasonable for all of your inventory.

Provincial prices are collected from Statistics Canada, Agriculture and Agri-Food Canada (AAFC), the Canadian Wheat Board (CWB), provincial agriculture departments, and commodity organizations.

Organic Commodities

Producers who report organically produced commodities must be able to provide organic certification upon the request of the administration.

Livestock Lease Agreements

If you are involved in a lease agreement, or if you own a portion of an animal, report only your share (e.g., ½ bull).

Lessee: If you lease a breeding herd but take only a percentage of the calf crop, report only your share of the herd based on your share of the calf crop, using code 8134, Breeding Females, Leased (not owned).

Example:
If you lease 100 cows but take only 60% of the calf crop, report only 60 cows using code 8134, Breeding Females, Leased (not owned). Report the corresponding number of calves (according to your lease agreement) using the appropriate code for their weight class.

Lessor: If you own cows but lease them out and take a percentage of the calf crop, report 100% of your cows using the applicable codes found in the Inventory Code Lists. Do not use code 8134, Breeding Females, Leased (not owned). Report the corresponding number of calves (your share according to the lease agreement) using the appropriate code for their weight class.

How to Complete the Columns:

Columns a and b: Report all livestock that you had on hand at the end of your 2010 fiscal period. Report each class of livestock separately. Use the Inventory Code List to identify each code and description for each livestock class.

Column c: Report the number of head of each livestock class that you had on hand at the end of your fiscal period. Do not round numbers and do not report dollar values instead of number of head.

Column d: If the livestock category you are reporting is shaded on the Inventory Code List, provide an EYP to value your livestock. If the livestock category is marked with an "X" on the Inventory Code List, leave the EYP column blank unless you meet the criteria for submitting your own price.

Crops/Forage Carried Over From 2009 But No Longer Seeded/Produced in 2010

If you had an ending inventory amount in 2009 for a commodity you stopped producing in 2010, complete columns "a" to "c" of Section 8, and enter zero in the 'acres' and 'quantity produced' columns. Indicate the amount (if any) of ending inventory in column "f".

Landlords/Tenants

If you are a tenant involved in a crop share, report only your share of the acres and quantities. Landlords are not eligible unless their share of the allowable income is in accordance with their share of the allowable expenses. This is considered a joint venture.

Example:
Joe rents 300 acres from Bill on terms that he receives 2/3 of the crop, and Bill pays 1/3 of the eligible expenses. In 2010, the rented land produces 300 tonnes of wheat. Joe, the tenant, reports 200 acres and 200 tonnes of wheat (2/3 of both the acreage and the production). Bill, the landlord, reports 100 acres and 100 tonnes of wheat (1/3 of both the acreage and the production).

Canadian Wheat Board (CWB) Commodities

Commodities marketed through the Canadian Wheat Board (CWB) are valued using the Early Payment Option (EPO) at 100% (EPO 100) when available or the Pool Return Outlook (PRO). The EPO or PRO is the highest estimated value that a producer can receive at year end. EPO or PRO values are based on the CWB Pool Return Outlook and are adjusted for a discount factor.

For CWB commodities, a receivables adjustment is necessary to calculate the difference between the initial price and the EPO or PRO for each CWB commodity on a per-unit basis.

The adjustment is calculated automatically by the administration based on the information included in your form. Alternatively, you can opt to complete a CWB Receivables Adjustment Worksheet which provides additional information upon which to calculate the adjustment. Once you use the worksheet to calculate your CWB Receivables Adjustment, you must submit the worksheet annually. Therefore, if you used the worksheet in a previous year, you must complete and submit a 2010 CWB Receivables Adjustment worksheet. See page 32 for details on this worksheet.

Perishable Horticulture Crops

For a commodity that is considered a perishable horticulture crop for program purposes (i.e. a horticulture or floriculture crop that spoils or decays easily and cannot be stored for periods longer than 10 months, such as potatoes, apples, carrots etc), adjustments are made on an accounts receivable basis, and not on an inventory valuation basis.

Do not report ending inventories for perishable crops. Report the Quantity Produced from your 2010 fiscal period. Do not report any production from the previous fiscal year.

See Section 11, "Deferred Income and Receivables" on your Statement A to report any income from sales of 2010 crops that are received in 2011.

Unseedable Acres

Report all acres that you would normally have seeded in the program year, but could not due to your land being too wet or too dry, on line 16, Unseedable Acres.

Report all summerfallow, pasture and wasteland acres on lines 17, 18 and 19.

Unharvestable Acres

If you grew a commodity and expected to harvest it in the program year but could not harvest it due to reasons beyond your control, report the commodity and corresponding acres, and report your production as zero. Snowed under crops are not included in this section, see "Snowed Under Crops", below.

Snowed-Under Crops

If, at the end of your 2010 program year, you were unable to harvest some or all of the crop due to snow, report the snowed under crop acres as production. Report the number of acres under the inventory code for that crop and report any estimated production that you may be able to harvest in the next year (if the crop was not salvageable, report a quantity of zero).

Once the crop has been reported using the correct inventory code for that commodity, use code 6826, Harvest Discount Allowance, to report the total acreage (regardless of the commodity) that was snowed under.

Example:
You seeded a total of 350 acres. 100 acres were seeded to canola while the other 250 acres were seeded to barley. You were able to harvest 80 of your canola acres and 200 of your barley acres before the remainder of your crops were snowed under. For your crop inventory, report 100 acres for canola and 250 acres for barley, reporting the actual harvest amount you received from those acres. Report 70 acres as snowed under using code 6826, Harvest Discount Allowance.

Standing/Unharvested Crops

If your fiscal year-end is such that your farm always has a standing crop (e.g. July 31) do not include the standing crop in inventory.

If your fiscal year-end is such that a standing crop occurs in some years because harvesting may or may not have been completed by fiscal year-end (e.g. September 30), include the standing crop in inventory. Fall and winter crops should also be reported in this manner.

Once the crop has been reported using the correct inventory code for that commodity, use code 6826, Harvest Discount Allowance, to report the total acreage (regardless of the commodity) that was still standing at your fiscal year-end.

Example:
You seeded a total of 400 acres to flax. You were only able to harvest 250 of these acres before your fiscal year-end, leaving you with 150 acres still standing. For your crops inventory, report 400 acres for flax, reporting the actual harvest amount you received from those acres. Report 150 acres as standing using code 6826, Harvest Discount Allowance.

Swath Grazing

If you use swath grazing as a management practice to extend your grazing season, report the number of acres you used for swath grazing using code 5588. Provide (in tonnes) your estimated production and any swath remaining at your fiscal year-end as ending inventory.

Multi-Stage Crops

If you produce multi-stage crops report all acres of those crops based on their establishment stage at the end of your fiscal period, even if no production was expected in the program year. Use the codes from the Inventory Code List that reflect the stage of production for the program year.

Multi-stage crops include apples, blueberries (high and low bush), cranberries, grapes, sweet cherries, Christmas trees, sod, echinacea and ginseng.

Planting Densities for BC Apples and Sweet Cherries: BC producers who are reporting apples or sweet cherries on Section 8 will be contacted by provincial representatives to collect detailed information on the variety, age, and density of these commodities.

Berry Producers

In some operations where early harvesting of berries is possible, a second planting of another commodity may occur. If there is expectation of harvest for both commodities in the same program year, report the acreage and production on section 8 for each commodity.

Sod Producers

Report your total sod acres (not just your harvested) based on their establishment stage at the end of your fiscal year. Refer to the inventory code list on page 40 of this guide for the codes required to report your sod acres.

Example 1:
You seeded 150 acres at the end of 2010 but only harvested those acres in 2011, report the 150 acres using code 6941, Sod, acres seeded.

Example 2:
You seeded 150 acres in 2009 but did not harvest those acres until 2011, report the 150 acres using code 6943, Sod, acres growing.

Note: Producers in the following regions of British Columbia report your sod acres using code 6937, Sod, acres harvested (BC Coastal Regions).

• Capital (17)
• Cowichan Valley (19)
• Nanaimo (21)
• Alberni-Clayoquot (23)
• Comox-Strathcona (25)
• Powell River (27)
• Fraser Valley (9)
• Greater Vancouver (15)
• Sunshine Coast (29)
• Squamish-Lillooet (31)

If you have more than one harvest within your fiscal year, report the acres only once.

How to Complete the Columns:

Column a and b: Report all commodities that you produced, or had on hand at the end of your fiscal period. Report each grade or variety of crop separately (e.g., list #1 Wheat 15% separately from #1 Wheat 12.5%) if available. Use the Inventory Code List to identify each code and description for each commodity. Leave the code blank if the commodity is not listed in the Inventory Code List.

Column c: Report the code for the unit of measurement used to measure the commodity you are reporting. Commodities must be reported using units of measurement (e.g., tonnes), not dollars. Use the same unit of measurement for all entries in a single row. Refer to the Units of Measurement Code List.

Column d: Report the number of acres used to produce each crop. Report only those acres for crops that produced or should have produced a crop during the program year.

If you produce multi-stage crops, report all of your acres (even if no production was expected) based on their establishment stage at the end of your fiscal year. See page 27 for information on multi-stage crops.

For commodities not measured in acres, use the unit of measurement considered standard for that commodity. For example:

• greenhouse operations (including floriculture), report their unit of measurement in square metres, based on productive area.
• maple syrup producers report in hundreds of taps producing. For example, if you have 350 taps producing, report 3.5.

Column e: Report the quantity of the crop that was produced in the program year.

Column f: Report the quantity of crop you had at the end of your fiscal period.

Column g: If the commodity you are reporting is shaded for your province or territory on the Inventory Code List you must provide an EYP to value your crops. If the commodity you are reporting is marked with an "X" for your province/territory on the Inventory Code List, leave the EYP column blank unless you meet the criteria for submitting your own price.

Livestock Lease Agreements

If you lease animals but do not take 100% of the revenue from the animal, report only your share of the agreement.

For example, if you lease 100 cows but only keep 60% of the calf crop, report 60 cows and follow the instructions below for cow-calf operations.

Productive Animals

How to Complete the Columns:

Canadian Wheat Board Payments

Do not report Canadian Wheat Board (CWB) adjustment, interim, and final payments, or payments from any other pooled commodity, on this section of your Statement A unless you specifically requested the payment be deferred by the CWB from one fiscal year into the next fiscal year.

Custom Feedlot Operators

Report any amounts you are owed for custom feeding livestock using code 246.

Fed Cattle Set-Aside

If you received or will receive a payment under the Fed Cattle Set-Aside Program for cattle held over at your fiscal year end, you must report the portion of that income attributable to as a receivable for your fiscal year on this part of the form.

Example:
With a December 31 fiscal year end, if the effective date of the set-aside was December 1, 2010, and the amount per head per day was $1.50 (as per auction price), the 2010 receivable would be 31 days × $1.50 = $46.50 per animal. Report the total amount of the receivable on this section of the form.

Feeder Calf Set-Aside

Payments from this program are considered income in the year they are received.

Prescribed Drought Region (PDR) and Canadian Food Inspection Agency (CFIA) Deferrals

If you deferred a PDR or CFIA payment from your 2010 fiscal year, report the amount of the deferral. Use the codes from the "PDR Deferred/CFIA Livestock Codes" chart on page 15.

Perishable Horticulture Crops

For a commodity that is considered a perishable horticulture crop for AgriStability purposes (i.e. a horticulture or floriculture crop that spoils or decays easily and that cannot be stored for periods longer than 10 months, such as potatoes, apples, carrots, etc.), adjustments are made on an accounts receivable basis and not on an inventory valuation basis.

Report the total actual sales of your 2010 program year crop that occurred in 2011 as an ending receivable, once your entire 2010 crop has been marketed and sold.

Your completed Statement A must be sent by the 2010 program deadline date. If you have not marketed your entire 2010 crop or received all of your income from your 2010 program year at the time of completing your Statement A, use code 4999, Perishables-Unreported Deferral and leave the ending receivable blank. This will ensure your Statement A is received by the deadline date and will alert the administration that there is an outstanding receivable. When the ending receivable value is known, submit the information to the administration. The administration cannot process your form until you have provided this amount.

How to Complete the Columns:

Livestock Owners and Custom Feedlot Operators with Prepared Feed Purchases

Report the value of prepared feed and protein supplements which were not paid for by the end of your fiscal year using code 571.

Livestock Owners with Custom Feeding Expenses

Report custom feeding expenses which were not paid for by the end of your fiscal year using code 573.

Ranch Fur Operators with Prepared Feed Purchases

Report the value of prepared feed and protein supplements which were not paid for at the end of your fiscal year using code 574.

How to Complete the Columns:

Other AgriStability Program Information

CWB Receivables Adjustment Worksheet: Commodities marketed through the Canadian Wheat Board (CWB) are valued using the Early Payment Option (EPO) at 100% (EPO 100) when available or the Pool Return Outlook (PRO). The EPO or PRO is the highest estimated value that a producer can receive at year end. EPO values are based on the CWB Pool Return Outlook and are adjusted for a discount factor.

For CWB commodities, a receivables adjustment is necessary to calculate the difference between the initial price and the EPO or PRO for each CWB commodity on a per-unit basis.

The adjustment is calculated automatically by the administration based on the information included in your form. Alternatively, you can opt to complete a CWB Receivables Adjustment Worksheet which provides additional information upon which to calculate the adjustment. Once the worksheet has been used to calculate your CWB Receivables Adjustment, you must submit the worksheet annually. Therefore, if you used the worksheet in a previous year, you must complete and submit a 2010 CWB Receivables Adjustment worksheet. The administration will not calculate your 2010 AgriStability benefits without this information.