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Canadian Agricultural Income Stabilization Program
CAIS Program: Overpayment Deferral

Q: Why was the collection of CAIS overpayments deferred?

As part of the May 2 budget, the federal government announced a total of $1.5 billion in support to producers including one-time funding of $900 million to shift the inventory valuation method used under the Canadian Agricultural Income Stabilization (CAIS) program.

The funds will be delivered through the CAIS Inventory Transition Initiative (CITI). This retroactive inventory valuation adjustment will result in federal payments of approximately $900 million to 2003, 2004, and 2005 CAIS participants.

CITI may reduce or eliminate any overpayments producers have received. As a result, the collection of CAIS overpayments is being deferred and no interest is being charged until January 1st, 2007 so that producers do not repay an overpayment, only to receive a program payment shortly after. Producers in an overpayment situation will have their CITI benefit reduced by the outstanding amount.

The deferral of overpayments applies only in federal delivery provinces.  In Alberta, Ontario, Quebec and Prince Edward Island, the program is delivered by the province and any decisions on the collection of CAIS overpayments will be made at the provincial level. For more information, please read the May 5, 2006 News Release.

Q: Does the deferral apply to all overpayments collected by the CAIS Administration?

This applies only to CAIS overpayments. Other debts to the Crown including debts to AAFC will continue to be collected. As well, the $55 Administrative Cost Share will continue to be collected from CAIS payments.

Q: Is the deferral retroactive?

The deferral is not retroactive. Producers who have already repaid all or part of their CAIS overpayment will not be reimbursed. Appeals on this issue will not be accepted.
Producers who are on a repayment plan and have provided post-dated cheques have been contacted to confirm if they want their cheques returned or applied to the overpayment.

Q: Will producers be informed if they have an overpayment? 

Producers with overpayments will continue to be notified that they have an overpayment. This is to ensure that producers are aware that they could potentially be in an overpayment situation.

The CAIS program is delivered in British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador and Yukon by the federal government. The information on this website refers to deadlines and other delivery details for these provinces only.

If you are in Alberta, Ontario, Quebec, or Prince Edward Island, the CAIS program is delivered provincially. Please click on your respective province to be linked to the provincial administration.

Date Modified: 2006-07-28 Top of Page Important Notices

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