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Business Risk Management
Canadian Agricultural Income Stabilization (CAIS) Program The Canadian Agricultural Income Stabilization (CAIS) program has been established to provide income protection and disaster assistance to Canadian farmers. The program is designed to provide affordable levels of coverage that producers could tailor to their particular circumstances. The CAIS program is based on a farm's production margin, or farm revenue minus expenses. Only expenses directly related to a commodities production - such as fuel, fertilizer and feed costs - will be deducted, the remaining income becomes the farms production (reference) margin. Payments are triggered when the current year's margin falls below the establish reference margin, which is calculated by taking the margins of the previous five years, removing the worst and best years, and then determining the average of the remaining three. To participate, the farmer must make a deposit at a bank or other participating financial institution. The refundable deposit is not a premium. It belongs to the farmer. In the event of a margin decline, the farmer would make a withdrawal from the deposit, triggering a government payout to help boost his or her income back toward the reference margin. If no margin decline occurred, the deposit could be rolled over for coverage the following year, or adjusted if the farmer wanted a different level of coverage. CAIS program handbooks are available at the Agriculture Branch to assist farmers in determining program eligibility and benefits. For additional information on CAIS please contact Agri-food Canada:
Or visit the CAIS Web site at: www.agr.gc.ca/caisprogram
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InFARMation
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Last Updated 04-01-2006