Farming in Alberta can be unpredictable, but Agriculture Financial Services (AFSC) is committed to providing solutions to help Alberta’s producers do what they do best – build, grow and succeed. We offer a range of lending and risk management options.
AFSC offers a dependable source of financing for Alberta farmers and agribusinesses through our Next Generation, Developing Producer, Alberta Producer, Revolving and Agribusiness loans. With competitive interest rates and flexible terms, AFSC’s lending solutions are tailored to Alberta producers’ growing operations.
AFSC helps clients with cash flow concerns, providing a variety of ways to support them. One way is to provide lending relief during tough times. Existing clients can discuss relief payment options with their Relationship Manager Lending.
AFSC’s annual and perennial crop insurance programs offer producers protection from designated perils that lead to production loss.
AFSC offers production-based programs that cover annual and perennial crops. This insurance provides a production guarantee based on the average of historical yields and coverage options selected. When production falls below the guarantee due to an insured peril, the shortfall will be paid.
AFSC’s area-based programs annual insurance offerings—like the Silage Greenfeed program—provide protection for crops based on a chosen area over a specified time; they do not directly reflect what happens on your individual farm.
The AgriStability program offers coverage to protect farm income, based on all of a producer’s commodities, against large margin decline that may threaten the viability of your farm. Removal of the Reference Margin Limit in 2021 makes AgriStability less complex and more responsive to all types of farming operations. It is anticipated that approximately half of participants will benefit from this change over time and their coverage could increase by up to 30 per cent.
As a risk management tool, Livestock Price Insurance (LPI) essentially forecasts prices and offers coverage based on what markets expect cattle will be worth in the future. This coverage is settled against the overall average cash market; therefore, producers still need to do the best job they can to market their cattle.
LPI is not based on a producer’s personal prices or production, and is an index-based program (uses standard weight and class of cattle to measure market performance). The indexing concept is important, as this standardized insurance product is what allows the program flexibility.
The program helps manage risks for cattle and hog producers throughout the various stages of production. Producers pay a premium to receive forward price coverage; if the market falls below the coverage price in the timeframe selected, the producer receives a payment.
Choosing the right cattle program—calf, feeder, fed—is very important.
The basic mechanics of LPI are simple. The program establishes a coverage level for the client—meaning an insured price level. If the cash market moves up during the time of your policy, you sell the cattle for higher dollars into that market; the insurance doesn’t pay because the market was stronger than your minimum when you bought the coverage.
If the cash market falls below your coverage, LPI pays the difference between the established settlement index and your coverage. This is intended to make up the difference between what you expected the market to be (your coverage level) and what the market actually was (the settlement index).
To learn more about AFSC lending and risk management offerings, please see AFSC.ca, reach out using Live Chat on AFSC Connect or our website, call our Client Service Centre at 1.877.899.2372 or contact an AFSC branch office.
ABP would like to take the opportunity to thank the staff of AFSC for their hard work supporting producers through the 2021 drought. AFSC took their responsibility administering the funds from AgriRecovery very seriously, recognizing producer’s need for immediate support. AFSC showed extraordinary commitment to ensuring that money was distributed as quickly as possible with the process that was provided.
Further, AFSC was quick to collaborate with producers to amend the MDI program to ensure it met producers needs going forward. ABP appreciates the willingness of AFSC to work with producers to make the best programs available.
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