The federal and provincial ag ministers have agreed on the “key elements” of a five-year, $3-billion framework.
The Canadian Agricultural Partnership is the successor to Growing Forward 2, which expires at the end of March.
- Read more: Ministers agree on new ag funding framework
Business risk management is one of six focus areas, particularly AgriStability. Starting in 2018, its reference margin limit will be capped and all producers will receive at least 70 per cent of their reference margin. There will also be a new $250 minimum payment and a “late participation” mechanism in situations where a significant decrease in revenue “threatens the viability of the farm.”
However, benefits will be reduced by 20 per cent for producers who enrol late. AgriInvest will get reduced funding with maximum allowable net sales reduced to $1 million (from $1.5 million).