Business & Policy
Reference Margin Limit removed retroactive to 2020
March 25, 2021 By Potatoes in Canada
As a result of today’s federal-provincial-territorial (FPT) meeting of Canada’s Ministers of Agriculture, the Reference Margin Limit (RML) has been removed from AgriStability. Marie-Claude Bibeau, federal minister of agriculture and agri-food, took to Twitter to share the news.
The removal of the RML is retroactive to the 2020 program year. In addition, the deadline for producers to enroll in the 2021 program year will be extended to June 30, 2021.
Bibeau mentioned that the offer for increasing compensation rates to 80 per cent through cost-sharing – 60/40 between the federal and provincial governments – is still on the table.
We’ve received the support from all our prov. & territorial colleagues on the removal of the Reference Margin Limit from #AgriStability, retroactive to 2020!
It’s a big win for farmers across 🇨🇦,=about $95M/year. Thank you to all farmers & producer groups who got behind our offer
— Marie-Claude Bibeau (@mclaudebibeau) March 25, 2021
According to Agriculture and Agri-Food Canada (AAFC), removing the reference margin limit could increase the overall amount AgriStability pays out to farmers by approximately $95 million nationally.
The federal government first tabled its AgriStability proposal during the last FPT conference in November 2020. At that time, the gathered ag ministers agreed that BRM programs needed to better target emerging risks that threaten the viability of the farm. As well, programs should be simple, predictable and respond quickly for producers, while treating farms fairly and equitably.
AAFC also notes that analysis continues on alternative risk management designs. This analysis will inform upcoming discussions on longer-term reforms, set to take place at the next in-person FPT Annual Conference in Guelph, Ont., scheduled for September 8-10, 2021.
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