Case Studies

Summary
Excess moisture and flooding led to significant challenges for Bob and Marcie, a farm family in southern Manitoba, causing their crops to remain unseeded and resulting in poor harvest yields. Through AgriInsurance, AgriStability, and AgriInvest, they were able to mitigate some of their financial losses.

The Challenge
Bob and Marcie manage a 2,500-acre grain and oilseeds farm. This year, severe spring flooding inundated 1,500 acres, preventing them from seeding those fields.

Average Year

• Grain Sales: $550,000
• Direct Costs: $290,000
• Overhead Costs and Profit: $260,000

Disaster Year

• Lost Income from Grain Sales: $330,000
• Shortfall for Expenses: $30,400
• Remaining for Overhead and Profit: $0

The Solution
How AgriInsurance Helped
Bob and Marcie received $105,000 from AgriInsurance's Excess Moisture Insurance for the unseeded crops. This amount was included in the calculation of their production margin under AgriStability.

How AgriInvest Helped
Bob and Marcie had an AgriInvest account with a balance of $22,000, plus a matching government contribution of $3,200. This provided them with a total of $25,200 to support their operation.

How AgriStability Helped
With a significant drop in their production margin, AgriStability provided an $85,920 payment. This improved their financial situation from a $30,400 shortfall to a positive $55,520 for overhead expenses.

Figures for Case Study

Item	Average Year	Disaster Year
Grain Sales	$550,000	$220,000
Seed Purchases	$10,000	$4,000
Other Input Costs	$280,000	$246,400
Total Expenses	$290,000	$250,400
Production Margin	$260,000	$(30,400)
AgriInsurance	-	$105,000

AgriStability Calculation

• Reference Margin (Average Year Margin): $260,000
• Payment Trigger Level (70% of Reference Margin): $182,000
• Program Margin (Production Margin + AgriInsurance): $74,600
• Decline (Payment Trigger Level - Program Margin): $107,400
• AgriStability Benefit (80% of Decline): $85,920

Source: https://agriculture.canada.ca/