General Knowledge
What is a Production Cycle?
Includes one or more of the following activities:
the growing and harvesting of a crop;
the process of rearing livestock;
the purchase and/or sale of livestock within a Program Year in the case of feeding or finishing enterprises.
(Definitions: pg. 5)
What is the deadline for producers to confirm their participation?
Within 30 days of receiving an Enrolment Notice, or 4 months after the beginning of the Program Year, whichever is later.
(3.2 Confirmation of Participation)
Operations are not considered to have made a contribution to the growth and maturity of the livestock, and their income and expenses are therefore non-allowable, if they are what?
1. acting as an agent or broker for the sale of livestock;
2. buying livestock for short-term resale, or;
3. assembling and preparing livestock for shipment.
(4.3.4 Custom Feeding Operations: pg. 23)
What is the theme of the conference and focus areas?
Training and Development, with the focus on:
• Job Knowledge
• Service Quality
• Processing Efficiency
(Welcome Page)
What country is BCTF exporting apples to in hopes of creating a new market?
Mexico
When is the final deadline
the end of that Program Year, or 60 days after the Enrolment Notice is issued, whichever is later
(3.3.3 Final Deadline: pg 11)
What is the late filing penalty?
If a Participant provides the completed Program Forms after the deadline, but within three months of the deadline, then the Administrator shall reduce any amount payable to the Participant for that Program Year by $500 for each month (or part thereof) which has passed since the deadline. If the reduction is greater than the amount otherwise payable, the amount payable shall be reduced to zero, and the remainder of the reduction shall not be applied to any other Program Year.
(3.4.1 Late Filing Penalty: pg. 12)
Name three program payments that are considered allowable in both the Program Year Margin and the Reference Margin
(i) AgriInsurance payments in respect of eligible agricultural commodities;
(ii) Unsubsidized insurance payments in respect of eligible agricultural commodities;
(iii) Wildlife Damage Compensation Payments;
(iv) Canadian Food Inspection Agency (CFIA) payments that are reportable as farm income for income tax purposes and which were calculated on the basis of the replacement value in respect of allowable income or expense items;
(v) Government program payments (description in the guide)
(4.3.1 Program Payments: pg. 22)
How many payment files did we have in 2017?
540
What is the biggest expense item for Nursery producers?
Labour at 1/3 of total expenses.
What are the General Eligibility Requirements?
1. carried on the business of farming in Canada and reported Farming Income (or loss) to the Canada Revenue Agency for income tax purposes no later than 3 months after the deadline for submitting Program Forms for that Program Year as set out in clause 3.4;
2. completed a minimum six consecutive months of farming activity;
3. completed a Production Cycle;
4. met all Program requirements by the deadlines established by the Administrator; and,
5. met any other applicable provincial requirements as specified in these Guidelines.
(1.1 General Eligibility Requirements: pg. 7)
1. the Farming Income and expense information submitted for income tax purposes (e.g. the Statement of Farming Activities), or other documentation showing Farming Income and expense information; and,
2. information detailing opening and ending information for Inventories, accounts payables and accounts receivables, and prepaid expenses, if required to adjust information reported on a cash basis;
(3.4 Determining Program Benefits: pg. 11)
Name three commodities that are NOT considered eligible for Program purposes
(i) Commodities generated through aquaculture;
(ii) Trees produced or harvested for use in reforestation, or for firewood, construction material, poles or posts, fibre, or pulp and paper;
(iii) Peat moss;
(iv) Cannabis (except for industrial hemp);
(v) Livestock sold in the operation of a wild game reserve; and Canadian Agricultural Partnership – Consolidated AgriStability Program Guidelines Page 21 of 47
(vi) Income and expenses related to the production of any agricultural commodity outside of Canada.
(4.3 Allowable and Non-Allowable Income and Expenses: pg. 20)
Under the new workflow, what dollar value can a FO21 push without further review?
up to $25,000
What was one challenge facing berry producers?
1. Labour scarcity
2. Increased foreign worker expenses
3. Farmland prices
Define Structural Change
A change in ownership, business structure, size of operation, farming practices, type of farming activity, method of accounting, or any other practice that a Participant might undertake that may alter Production Margins or a farming operation’s potential for profit or allowable expenses.
What is a deemed AgriInsurance Benefit?
Participants who did not participate in an AgriInsurance program at the Minimum AgriInsurance Coverage Level will have their negative margin benefit reduced by seventy percent of the deemed AgriInsurance benefit (deemed benefit), which represents the indemnity that a Participant would have received had they participated in AgriInsurance, less the premium that a Participant would have paid to participate in AgriInsurance.
(3.9 Payments for Negative Margins: pg. 14)
A Structural Change adjustment will not be applied unless:
a. the difference between the Reference Margin before and after applying the Structural Change adjustment is at least 10 percent and $5,000; or
b. the difference between the Reference Margin before and after applying the Structural Change adjustment is at least 50 percent and the Administrator considers that applying the Structural Change adjustment would avoid an anomalous result i.e. where the unadjusted Reference Margin does not reflect the farming operation’s Program Year productive capacity.
(4.7 Structure Change: pg. 28)
What are the three main areas that can cause a payment?
1. Price
2. Production
3. Expenses
China closed its borders to Canadian Canola in April of this year. What was the size of the Chinese market to Canadian Canola farmers?
$3 billion
What documentation is required to close estate accounts?
1. a written request to close the account signed by the executor or administrator;
2. a certified copy of the probated will or letters of administration/probate; and
3. a certified copy of the death certificate.
(1.2 Deceased Participants: pg. 8)
What is the criteria for an interim payment?
1. the Participant has completed six months of farming activity in that Program Year;
2. the Participant has completed a Production Cycle in that Program Year;
3. the Participant’s projected Program Year Margin has declined by more than 30 percent of their Reference Margin;
4. if the enrolment deadline has passed, the Participant has confirmed participation
(3.10 Interim Payment: pg.16)
In determining whether farming operations are part of the same Whole Farm, what are the 3 relevant factors are each operation’s to determine independence of operations. Provide one example for each.
Legal Independence
1.Land Ownership (Land title, Consideration, Liens/encumbrances)
2. Land Rental (Lessor/lessee, Consideration, Terms)
3. Business Registrations / Agreements (Formality, Intent, Terms)
Financial Independence
1.Transactions (Arm’s length, Special considerations)
2. Equity (Amount, Risk, Guarantors)
3.Separate Accounting (Books and records, Bank accounts/loans, Income tax filing, Accounts with suppliers)
Operational Independence
1. Equipment (Owned/rented, Custom contract)
2. Decision Making (Education/training, Knowledge/experience)
3. Storage and Sales (Independent storage, Permit books)
(4.8.1 Assessing the Independence of Operations: pg. 30)
Name three commodities that will go to the new speciality unit
Cranberries, Dairy, Herbs/Spices, Other Livestock, Hog, Sheep, Mink, Nursery, Bees
The increase in wildfires in the Okanagan has had a substantial impact on fruit producers for the past few years
What were the three problem areas identify in the Tree fruit presentation?
1. Fruit doesn’t size properly
2. Fruit lacks colour
3. Not marketable