Federal, provincial, and territorial agriculture ministers have agreed on significant enhancements to the AgriStability program’s support for farmers. Starting with the upcoming program year, AgriStability will cover a greater share of farmers’ income losses – raising its compensation rate from 80% to 90% – and double the maximum payout cap from $3 million to $6 million. These changes mean farmers will get more money back when they face a steep drop in income, and larger farm operations won’t hit the ceiling on support as quickly. It’s a move the OFA is welcoming as a needed and timely improvement. 

What the AgriStability Changes Mean for Farmers

Under AgriStability, farmers receive payments when their current year margin (eligible income minus eligible expenses plus inventory adjustments) falls below a percentage of their historical average (known as the payment trigger). The program then pays a portion of the shortfall. By increasing the compensation rate to 90%, the program will now cover 90 cents of every dollar of margin loss beyond the trigger, up from the previous 80 cents. This higher compensation rate makes AgriStability payouts more generous when farmers need them most.

The doubling of the maximum payment cap from $3 million to $6 million means the program can pay out more to farms that suffer very large losses. Previously, extremely hard-hit or large operations could max out at $3 million in AgriStability payments, even if their losses were greater. With a $6 million cap, more of those catastrophic losses can be covered. Large family farms and certain sectors with higher income volatility such as hog and cattle producers will be particularly benefit from these changes. All farms enrolled in the Agristability program will benefit from the higher 90% coverage rate, which boosts the support on each dollar of loss.

OFA Business Risk Management Advocacy

OFA has a long history of advocating for improvements to Business Risk Management (BRM) programs like AgriStability. In 2013 farmers began losing confidence in AgriStability when the payment trigger was lowered from 85% to 70% o historical refence margins and the Reference Margin Limit (RML) provisions were introduced. Those 2013 changes greatly reduced the program’s coverage– producers had to endure a 30% income drop before receiving a payment (versus 15% before), and the new RML rule severely limited payouts for certain commodities and added increased uncertainty to the program. This resulted in a drop in farmer participation and confidence in AgriStability.

Since then, OFA and other farm groups have consistently pressed governments to reverse those cuts. In recent years, progress has been made – much of it reflecting the persistent advocacy through pre-budget submissions and advocacy efforts.

Key improvements in include:

• 2020: Removal of the AgriStability Reference Margin Limit, a restrictive rule that capped many farmers’ reference margins with low eligible expenses. This change (made retroactive to 2020) meant farms with lower expense ratios could finally access higher levels of support.
• 2023: An increase in AgriStability’s compensation rate from 70% to 80%.
• 2025: The latest proposed enhancements – raising the compensation rate further to 90% and doubling the payment cap to $6 million – which federal and provincial ministers have now agreed to implement. This is another major victory for farm advocates, representing the most generous AgriStability terms in over a decade.

OFA has been at the forefront of calling for these kinds of changes, continually highlighting how robust BRM programs are essential to ensuring Ontario agriculture remains resilient in the face of growing uncertainty. OFA has frequently cited the “perfect storm” of challenges farmers face – from soaring input costs and high interest rates to mounting farm debt and escalating trade tensions – as reasons to strengthen support programs.

OFA commends the federal, provincial, and territorial (FPT) governments for listening to farmers’ concerns and making these needed improvements to the AgriStabiity program. By agreeing to the enhancements, FPT ministers have recognized the urgent needs in the sector.

OFA remains committed to working with FPT governments to ensure Agristability and other BRM programs continue to evolve to meet the needs of Ontario farmers and help the agricultural sector reach its full economic potential and remain competitive on the world stage.