AFSC pilot to evaluate options to improve AgriStability responsiveness for cow-calf sector

Historical AgriStability analysis demonstrates that capturing full winter feed and pasture cost, along with removing feed inventory price swings during droughts, could significantly improve the responsiveness of the AgriStability program for Alberta’s cow-calf sector. A pilot study will be undertaken to determine the most appropriate program design under various winter-feeding practices.

In early 2023, AFSC completed a review of the AgriStability program specifically focused on finding options that would improve program responsiveness to the cow-calf sector. Program improvements that could meaningfully benefit cow-calf participants focus on the limited program eligibility of feed and pasture costs and the significant feed inventory price adjustments during drought.

Different production systems and practices to obtain winter feed and pasture for the cow herd have the
current AgriStability program only capturing a portion of total feed and pasture costs. These are the largest components of input costs to the cow-calf sector, and initial analysis confirms this as a significant limitation to the program. Additionally, with drastic increases to feed values during drought years, current inventory valuations can result in significant positive inventory adjustments in drought years, despite producers being short production. Initial analysis confirms this is distorting the timeliness of
program payments and a potential change to remove the price-inventory adjustment of feed would better connect program payments to disaster years.

AFSC is currently looking for cow-calf producers – of diverse production styles – to participate in a pilot for 2024. The purpose of this pilot is to determine the most appropriate way to capture full input costs, regardless of how winter feed and pasture are grown or purchased.

Pilot participants do not need to be enrolled in AgriStability but do need accurate historical income
and expense reporting, as well as year-end inventory reporting. Pilot participants will have analysis completed on their farm and payment calculations under various methodologies to help determine the most responsive and appropriate program design for any potential changes.

Producers interested to participate in the pilot can contact Stuart Chutter.

This article was first published in Volume 3 Issue 4 of ABP Magazine (December 2023). Watch for more digital content from the magazine on ABP Daily.