Rare praise for AgriStability

After several good years financially for most grain producers, the AgriStability program is finally proving its worth. Through each incarnation from AIDA, to CFIP, to CAIS and finally to AgriStability, there have been improvements enabling the program to more accurately measure each farm’s reference margin. The valuation of grain inventory is now better and there’s an improved mechanism for adjusting reference margins for operations that are growing larger. With comparatively strong grain prices in recent years, combined with good crops in many regions, reference margins have improved. Shea Ferster of Meyers Norris Penny in Saskatoon says he has seen situations in the grain industry where producers are virtually bulletproof going into the 2010 growing season because they’ve built up strong reference margins. If they have a poor crop or if grain prices are bad, or even if both of these events come to pass, they’re protected. Of course, not all farmers have had good crops in recent years, and situations vary widely from one farm to the next. But as a general rule, AgriStability is now a huge asset for many grain producers, particularly those who maximized their reference margins in the years when they didn’t have claims. I’m Kevin Hursh.