Manitoba Agriculture farm management specialist Ben Hamm calls low enrollment in the federal AgriStability program a “missed opportunity” for livestock and crop producers. The income-based risk management tool, he argues, offers broader protection at lower costs than alternatives—yet only 20 per cent of eligible producers use it.
“It’s about understanding the calculation”
“AgriStability is one of the best risk management tools we have,” Hamm says. “It’s based on your margin—it's allowable income minus allowable expenses—and costs about a tenth of production insurance. But if producers don’t grasp how their five-year income average works with accrual adjustments, they won’t see its value.”
Whatever you've done in the last five years, or however long you've been farming, it's compared to your current year. He notes the prices are extremely high at the moment -- $4 a pound; $4.50 or $5,00 -- the prices are high and this is the prime time. Volatile markets are what AgriStability was created for, and that's exactly what we're in at the current time.
"You take the average of the last five years, and you drop the high level out to get a true level of what your farm is doing. So, you won't have all the high prices in there, but commodity values are all there. And that commodity change is incorporated into the accrual adjustment. So, when these commodity prices come back down, the accrual adjustments will bring you down on top of what the allowable income minus the allowable expense calculation does."
He notes, if ever there was a time, now is the time. Hamm notes it's a little expensive but they can guarantee extremely strong prices.
"If we knew these prices were available to us at the times of BSE (Bovine Spongiform Encephalopathy), every one of us would take Livestock Price Insurance. We have this opportunity now, and we have 10 or 20 per cent of the producers taking it. It's a missed opportunity. And it does cost a bit more compared to AgriStability, but if you're going to go in one or the other -- I encourage both, and even forage insurance -- but AgriStability is all-encompassing, whereas Livestock Price Insurance (LPI) is just looking at one very individualistic thing. It's a little bit limiting that way, whereas AgriStability covers absolutely anything and everything."
With volatile markets and environmental pressures rising, Hamm stresses the program’s flexibility. It covers all eligible commodities, from cattle to canola, and adjusts for price swings.
“When prices are high like now, locking in coverage protects you when they drop,” he adds. “We’d have killed for these rates during BSE.”
Hamm recommends both LPI and AgriStability.
"If prices do come down, you have LPI to back you up. AgriStability can do some interesting calculations on the accrual side that can offset some things, but to have full protection, I encourage both., It is just a lot more well-rounded. the cost of AgriStability is going to be a tenth of what LPI costs are. It's $315 roughly for a $100,000 margin. So, it's very very basic costs. It's just going to be education that you need. And if you are going to go into it, calculation and program benefits is the most important piece of information. Every producer needs to understand what that calculation program benefit is, and understand what each page is. It's all of their individual information and if they don't, I'd encourage them to look at some education help, whether it's accounts or whoever it is, they need to understand what that is."
Deadline looms for “all-encompassing” protection
Producers must enroll by April 30 to access 2024 coverage. Hamm urges farmers to request participant packages from AgriStability administrators, noting simplified paperwork: “You don’t need full inventory lists anymore—just basic cash basis info.”
“This isn’t optional—it’s survival”
“If I could scream one thing, it’s learn the program benefits calculation,” Hamm continues. “Once you see how it compares your current year to past performance and factors commodity price changes, it clicks. But without that effort, you’re leaving money on the table.”
While Hamm encourages pairing AgriStability with price insurance for “full coverage,” he acknowledges budget constraints. Roughly 315 per 100,000 margin makes AgriStability the priority: “It’s dirt-cheap disaster-proofing. If you skip education, you’re skipping your safety net.”
Manitoba farmers urged to grasp AgriStability benefits before deadline
Manitoba Agriculture’s Ben Hamm emphasizes the critical need for producers to understand AgriStability’s program benefits ahead of its April 30 enrollment deadline. The federal risk management tool covers crops and livestock—key commodities in the province—but low uptake persists due to confusion over its calculations.
“Eligible commodities cover Manitoba’s core sectors”
“It has to be an eligible commodity, which crops and livestock all are part of,” Hamm says. “It is covering a lot of commodities there that we do have in Manitoba.”
“Program success hinges on farmer education”
Hamm stresses that grasping the program’s accrual adjustments and five-year income comparisons is non-negotiable.
“There’s no point in being in the program if you don’t put the effort into understanding it,” he adds. “Once you see how it factors allowable expenses and commodity price shifts, it becomes a powerful tool.”
The specialist warns that skipping this step risks leaving thousands in potential aid unclaimed. Simplified enrollment, now requiring only cash-basis data, aims to reduce barriers.
Hamm encourages producers to consult accountants or request enrollment kits immediately. “Bottom line, this could save them a lot of money,” he notes. “They just need to do a little bit of education.”
Province announces funding for AgriStability
It was just announced today (April 2) that Manitoba Government is providing $150 million for agricultural producers including $10 million to match federal AgriStability funding.
"The Manitoba government will provide $10 million in additional matching funds for the AgriStability program, as well as $140.8 million for business risk management programming including AgriInsurance, Wildlife Damage Compensation and AgriInvest."