For AgriStability participants

In addition to completing pages 1 to 5, you must complete page 7 of Form T1273 to participate in AgriStability.

Complete only the areas that apply to your farming operation. If you have additional farming operations, also complete Form T1274.

If you file to the CRA on the accrual basis, you do not need to complete the following parts of this form:

• the "End of year price" for the "Crop inventory valuation and productive capacity", and "Livestock inventory valuation" sections; or
• the "Purchased inputs", "Deferred income and receivables" and "Account payable" sections.

Read the instructions below for further details.

If there are not enough lines on the form to provide all of your information, attach a second copy of the page to your form, with the rest of the information on it.

AgriStability program codes

You will need to refer to the following code lists to complete this page. These lists can change from year to year so it is important to check each year for the right code.

• Inventory code list: Includes the codes and descriptions of the commodities to complete the "Crop inventory valuation and productive capacity" and "Livestock inventory valuation" sections of the form.
• Units of measurement code list: Includes the unit of measurement codes (for example tonnes or bushels) to report your "Crop inventory valuation and productive capacity" section of the form.
• Expense code list: Includes the codes and descriptions of the allowable expenses to complete the "Purchased inputs" and "Accounts payable" sections of the form.
• Commodity list: Includes the codes and descriptions of commodities to complete the "Purchased inputs", "Deferred income and receivables", and "Accounts payable" sections of the form.
• Program payment list A and Program payment list B: Includes the codes and descriptions of program payments to complete "Deferred income and receivables" section of the form.
• Productive capacity list: Includes the codes and units used to report "other" commodities not listed in the "Livestock productive capacity" section of the form.

Commodities with published prices

You are not required to provide End of year prices (EYPs) in the "Crop inventory valuation and productive capacity" and "Livestock inventory valuation" sections of the form if the commodities you report are marked by an "X" on the Inventory code list for your province or territory.

We develop prices for commodities marked with an "X" using information from:

• Statistics Canada;
• Agriculture and Agri-Food Canada (AAFC);
• provincial agricultural departments; and
• commodity organizations.

The prices are published in the AgriStability Price List. We use these prices to value your inventory. You can request this list from us or find it on the program website.

If you do not feel these prices are appropriate for your farm, you may use your own prices if you can show that your:

• commodity is substantially different from the commodity listed; or
• method of marketing the commodity was substantially different from the general marketing practice.

In either of these cases, you may use prices based on sales or purchases of the specific commodity:

• in your name; and
• occurring within 30 days either before or after your fiscal year-end.

To use your own prices, send copies of receipts or documents that support your prices to your Administration. Send this information at the same time you send your form to the Winnipeg Tax Centre, or within your adjustment time frame. For more information on adjustments, see Adjustments.

We will determine if the prices are reasonable for your commodity.

Commodities with unpublished prices

You must provide End of year prices (EYPs) for the crop and livestock inventories that are shaded on the Inventory code list (for your province or territory). Base your prices on:

• the estimated market prices at year-end; or
• sales or purchases within 12 months before or after your fiscal year-end.

You are not required to provide documentation to support these prices for unpublished commodities. However, if you do it will increase the chances of your price being accepted.

Supporting documentation includes:

• receipts from sales or purchases of the commodity; or
• commodity specific price information from appropriate commodity marketing agencies.

Send your supporting documentation to your Administration at the same time you send your forms to the Winnipeg Tax Centre or within your adjustment time frame. For more information on adjustments, see Adjustments.

We will determine if the prices are reasonable for your commodity.

Has the productive capacity of this operation decreased during the program year due to disaster circumstances?

Tick "Yes" if the productive capacity of your farm decreased due to disaster circumstances during the program year. A decrease in productive capacity means a decrease in the overall amount that you produced.

For example, tick "Yes" if CFIA ordered your livestock destroyed due to disease or if you could not seed or harvest some or all of your land because of extreme wet or dry conditions.

Livestock inventory valuation

Complete this section if you had livestock in your inventory during the program year. Include livestock carried over from a previous fiscal year; or carried into the next fiscal year.

This part of the form is used to:

• measure your livestock inventory change from the ending amount you reported in 2016 to the ending amount in the 2017 program year; and
• show that your farm has completed a production cycle.

How to complete the columns

Code and description

Use the "Inventory code list," on page 78 to report all livestock you had on hand at the end of your 2017 fiscal period. Report each class of livestock separately.

Ending inventory

Report the number of head that you had on hand at the end of your 2017 fiscal period. Use actual (not rounded) numbers.

End of year price $

Include an End of year price (EYP) to value livestock inventories that are shaded on the "Inventory code list" (for your province or territory). If you are reporting a livestock category that is marked with an "X" on the "Inventory code list," leave the column blank.

Do not complete this column if you file to the CRA on the accrual basis.

Livestock lease agreements

If you are involved in a lease agreement, or if you own part of an animal, report only your share of the lease agreement. For example, if you co-own a bull with another producer, report ½ a bull in your inventory.

Lessee: if you lease a breeding herd but take only a percentage of the calf crop, report your share of the:

• herd based on your share of the calf crop. Use code 8134, "Breeding females, leased (not owned)" to report the leased cows; and
• calves, using the code for their weight class.

Lessor: if you own cows but lease them out and take a percentage of the calf crop, report:

• 100% of your cows using the codes found in the Inventory code list; and
• your share of the calf crop using the code for their weight class.

Crop inventory valuation and productive capacity

Complete this section if you:

• produced or seeded crops or forage with the expectation of harvest during the program year;
• had unseedable acres in the program year; or
• carried over crops or forage in your inventories from your previous fiscal year.

This part of the form is used to:

• measure the change in your crop and forage inventory from the ending amount you reported in 2016 to the ending amount in the 2017 program year;
• show that you have completed a production cycle;
• adjust your reference margins if you had a structural change.

To help you complete this section, refer to your:

• crop production records;
• sales and feeding records;
• crop insurance measurements; and
• inventory records.

AgriInsurance (crop or production insurance)

If you participated in AgriInsurance (crop or production insurance), provide your contract or identification numbers related to the crops listed on this section.

How to complete the columns

Code and Crop/Grade

Use the "Inventory code list" to report all commodities by code and description that you:

• produced;
• had on hand at the end of your fiscal period; or
• planned to produce but could not because your land was too wet or too dry.

Report each grade or variety of crop separately. For example, report #1 Wheat (<12.5%) separately from #1 Wheat (>14.0%). Leave the code blank if the commodity is not listed in the Inventory code list.

Units

Use the "Units of measurement code list" to report the code used to measure your production. Report your "Quantity produced" and "Ending inventory" using the same unit of measurement.

Acres

Report the number of acres used to produce each crop. Report only those acres that produced or should have produced a crop during your 2017 fiscal year.

If you had unseedable acres (too wet or too dry), report them in the "Unseedable acres" column.

Report all summerfallow, pasture and wasteland acres on the designated lines.

For commodities not measured in acres, use the unit of measurement that is standard for the commodity.

Unseedable acres

Report acres you planned to seed for each commodity that should have produced a crop but did not because the land was too wet or too dry.

If you planned to produce multi-stage crops, report the unseedable acres for each multi-stage commodity you planned to seed in the program year.

Quantity produced

Report the quantity of crop you produced in the program year.

Ending Inventory

Report the quantity of crop you had at the end of your 2017 fiscal period.

End of year price $

Provide an End of year price (EYP) to value crops that are shaded on the "Inventory code list" for your province or territory.

Leave this column blank if your commodity is marked with an "X" on the "Inventory code list" for your province or territory, unless you meet the conditions to use your own price. For more information, see Commodities with published prices.

Do not complete this column if you file to the CRA on the accrual basis.

Crops or forage carried over from 2016 but no longer seeded or produced in 2017

If you had inventory at the end of your 2016 fiscal period for a commodity you did not produce in 2017:

• complete the "Code", "Crop/Grade", and "Units" columns;
• enter "0" in the "Acres" and "Quantity produced" columns; and
• report ending inventory in the "Ending inventory" column if you are carrying the inventory over to your 2018 fiscal period.

Landlords/tenants

If you are a tenant in a crop share, or a landlord in a joint venture crop share, report your share of the acres and quantities.

Commodity pools

If you sold commodities into a pool, report the full value of your commodity even if you only received a portion of the payment in your 2017 fiscal year.

Use code 4020, "Expected grains and oilseeds pool payments" to report any payments you received or expect to receive for your commodity after your 2017 fiscal period as receivable in the "Deferred income and receivables" section of the form.

Perishable horticulture crops

A perishable horticulture or floriculture crop is a crop that:

• spoils or decays easily; and
• cannot be stored for periods longer than 10 months, such as potatoes, apples, and carrots.

Perishable horticulture crops are adjusted on an accounts receivable basis, not on an inventory valuation basis.

Report only the "Quantity produced" from your 2017 fiscal period. Do not report ending inventories or production from your previous fiscal year.

Report any income from the sales of 2017 crops that you will receive in your 2018 fiscal period in the Deferred income and receivables section.

Swath grazing

If you use swath grazing as a management practice, use code 5588 to report the number of acres you used for swath grazing. Report your production (in tonnes) and any swath remaining at the end of your fiscal period as ending inventory.

Organic production

Report your crop as "organic" only if it has been Certified Organic. We may ask for your organic certification.

Unharvestable acres

If you grew a commodity and expected to harvest it in the program year but could not for reasons beyond your control, report the commodity, acres and enter "0" as the total production.

Snowed-under crops

If you could not harvest some or all of your crop at the end of your fiscal year because it was snowed under, report:

• the total acres for the crop using the inventory code for that crop; and
• the estimated production that you may be able to harvest next year.

Then use code 6826, "Harvest discount allowance," to report the total of all commodities that were snowed under.

Standing crops

If your farm always has a standing crop at the end of your fiscal year (for example, July 31), do not report the standing crop.

If your farm has an unexpected standing crop because you could not harvest it before the end of your fiscal year, include the standing crop in inventory.

Report the total acres for each crop you grew using the inventory codes for the commodity. Then use code 6826, "Harvest discount allowance," to report the total acreage of all commodities that had standing crop at your fiscal year-end.

Multiple crops

In provinces such as British Columbia, you may be able to harvest your commodity early enough to plant another commodity on those same acres. If you harvest both commodities in your 2017 fiscal year; report each commodity's acreage and production in your crop inventory.

Multi-stage crops

Multi-stage crops are commodities that take longer than one year to reach full production. Because multi-stage crops are grown over several years, there are different inventory codes to reflect the stage of production.

Use the Inventory code list to report the stage of production for your commodity.

Report all the acres of your crop even if you did not harvest the crop in your 2017 program year.

The multi-stage crops include:

• high bush blueberries;
• grapes;
• sod;
• Christmas trees;
• echinacea;
• ginseng.

In British Columbia, multi-stage crops also include:

• cranberries;
• hops;
• sweet cherries;
• apples.

In New Brunswick and Nova Scotia, multi-stage crops also include:

• low bush blueberries; and
• cranberries.

High bush blueberries and grapes

Start reporting your acres in the year you plant. Continue reporting your acres during the non-bearing years.

Low bush blueberries

Start reporting your acres once you have cleared the land and started nurturing the plants. Once you start producing blueberries, report your acres based on their stage of growth.

Sod

Report your total sod acres (seeded, growing, and harvested) based on their stage of growth at the end of your fiscal year.

If you harvested and then re-seeded the same sod acres in your 2017 fiscal year, report the acres twice.

If you produce sod in the following regions of British Columbia:

• use code 6937, "Sod, acres harvested (BC Coastal Regions)" to report your sod, and
• only report your acres once, even if you had more than one harvest within your fiscal year.

Christmas trees

There are two types of Christmas tree operations:

• tree farms; and
• managed natural stand.

Tree farms plant their seedlings in a greenhouse, garden or tree farm, and maintain them until harvested.

Report your total acres of trees based on their stage of growth at the end of your fiscal period. Report your production and ending inventories based on the number of trees you had in each of the stages of growth.

To report your trees, use:

• Nursery codes for the seedlings you grow in your greenhouse or garden prior to transplanting to your tree farm.
• Code 6960 for the seedlings or trees you planted on your tree farm the first year (establishment stage).
• Codes 6961, 6962, 6963, and 6964 to report your seedlings or trees based on their stage of growth.

Managed natural stand operations select their trees from existing forest and actively maintain them until harvested.

If you operate a managed natural stand, report the acres of trees that you actively maintained as either pre-harvested (in the ground) or harvested (removed from the ground). Base the number of acres you report on 1,000 trees per acre.

For pre-harvested acres, report the quantity produced based on the number of trees. Report ending inventories and an end of year price for your pre-harvested trees.

For harvested acres, report quantity produced based on the number of trees harvested.

Do not report ending inventories or an end of year price for your harvested trees. Harvested trees are a perishable commodity. They are adjusted on an accounts receivable basis, not an inventory basis.

Echinacea and ginseng

Report acres in the establishment stage until the year of harvest. When you harvest the acres, report them as root harvested.

Cranberries

Report acres in the establishment stage until production starts. This stage can last up to three years.

Hops

Start reporting your acres in the year you plant.

Sweet cherries and apples

Report the total acres planted for each commodity. Your Administration will collect details on the variety, age and density of apples and sweet cherries.

Livestock productive capacity

The information in this section of the form is used to adjust your reference margins if your operation experienced a change in structure.

Livestock lease agreements

If you lease animals but do not take 100% of the revenue from the animal, report only your share of the agreement.

Productive animals

Code 104 – Cattle

Report the number of cows that calved in your 2017 fiscal year.

Do not report calves that were born in your 2017 fiscal year, even if they were:

• weaned;
• sold; or
• held over to sell in a different fiscal period.

If you hold your calves over to your next fiscal year, report them as feeder cattle next year if they have an appreciable gain in that fiscal period.

Report all your calves as inventory in the "Livestock inventory valuation" section, even if you hold them over to your next fiscal period.

Codes 123 and 145 – Hogs

Report the number of sows in the breeding herd within the 2017 fiscal year. Report the sows based on the type of operation (farrowing or farrow to finish). Calculate the average number of breeding sows by dividing the births in your 2017 fiscal year by your average birthrate per sow.

If your hog operation only produced for part of the year, ensure your average number of breeding sows is lower to reflect your reduced production.

Codes 105 and 106 – Number of feeder livestock – Cattle

Report the number of animals you fed that had an appreciable gain in 2017 (a 90 kg/200 lb weight gain or a minimum of 60 days on feed). Group the animals fed based on:

• the sale weight, if sold in the program year; or
• expected sale weight, if not sold in the program year.

Do not include the following animals in this section:

• breeding animals;
• culls;
• animals that have not been weaned; and
• animals born within the operation in the program year.

Codes 124 and 125 – Number of feeder livestock – Hogs

Report the number of animals fed. Group the animals fed based on:

• the sale weight, if sold in the program year; or
• expected sale weight, if not sold in the program year.

Do not include the following animals in this section:

• breeding animals;
• culls;
• animals that have not been weaned;
• animals born within your operation in the program year; or
• animals previously reported in a farrow to finish operation.

Custom fed livestock

Report the number of animal feed days. Animal feed days are the number of animals × the number of days each animal was fed.

Supply managed commodities

Report the amount of quota and contract held.

Ranch fur operators

Report the number of females that birthed.

Other (specify below)

Use the Productive capacity list to report any commodities that do not fit into the above categories. If the commodity is not listed, leave the code blank.

Purchased inputs

Complete this section if it is relevant to your farm.

Do not complete this section if you filed to the CRA on the accrual basis.

Report inputs you purchased to produce your agricultural commodities that you did not use by the end of your fiscal year.

Some examples of purchased inputs are:

• fuel;
• chemicals;
• purchased seed;
• feed;
• embryos;
• semen;
• fall application such as seed, fertilizers, and chemicals.

Do not report your purchased inputs as ending inventory in the "Crop inventory valuation and productive capacity" and "Livestock inventory valuation" sections. For example, if you purchased $5,000 of wheat seed for next year's crop, report the amount as a purchased input but do not include the seed in the crop inventory section.

How to complete the columns

Code and description

Use the Expense code list or the Commodity list to identify each item you report. If your item is not listed, leave the code blank.

End of year amount

Report the dollar amount that you had on hand at the end of your 2017 fiscal year. Include any applicable 2017 fall applications and any prepaid purchases in 2017 that are designated for the 2018 fiscal year.

Livestock owners and custom feedlot operators with prepared feed purchases

Use code 571 to report the value of prepared feed and protein supplements you have on hand at the end of your fiscal year.

Ranch fur operators with prepared feed expenses

Use code 574 to report the value of prepared feed and protein supplements you have on hand at the end of your fiscal year.

Deferred income and receivables

Complete this section if it is relevant to your farm.

Do not complete this section if you file to the CRA on the accrual basis.

Deferred income is income you have chosen to postpone receipt of to the following fiscal year.

A receivable is income that is owed to you for goods delivered or services provided in this fiscal year but is not paid to you until your next fiscal year.

To be allowable, deferred income or a receivable must be related to income that is allowable for AgriStability. For example, a receivable for the sale of grain is allowable; a receivable for machinery rental is non-allowable. For more information on allowable and non-allowable items, see your program handbook or visit the program website.

Report your AgriInsurance (crop or production insurance) indemnity as a receivable, even if you did not receive your full indemnity before your 2017 fiscal year-end.

How to complete the columns

Code and description

Use the Commodity list, the Program payment lists A, and the Program payment list B to report all deferred income and receivables you had at the end of your fiscal year. If your item is not listed, leave the code blank.

Use code 9574, "Resales, rebates, GST/HST for allowable expenses" to report all deferred income or receivables for resales, rebates or GST/HST related to your allowable expenses.

Ending receivables and income deferred to 2018

Report the dollar value of the account receivable or deferred income item owed to you at the end of your 2017 fiscal period.

Commodity pools

If you sold commodities into a pool but did not receive the full value for the sale of your commodity at your fiscal year-end, use code 4020, "Expected grains and oilseeds pool payments" to report any adjustments or final payments you received or expect to receive after your 2017 fiscal year. Provide an estimate if you do not know the amount of the adjustment or final payment.

If you deferred your pool payments (adjustments, interim, or final) to your next fiscal year, report these deferrals using the code for the commodity.

Custom feedlot operator income

Use code 246 to report any amounts owed to you for custom feeding livestock.

Prescribed drought region (PDR), Prescribed flood region (PFR) and Canadian Food Inspection Agency (CFIA) deferrals

Use the codes from the chart PDR/PFR/CFIA deferred livestock codes of this guide to report any PDR/PFR or CFIA payments you deferred out of your 2017 fiscal year.

Perishable horticulture crops

Report the sales of the 2017 crop that occurred in the 2018 program year as an ending receivable, once your entire 2017 crop has been marketed and sold.

Use code 4999, "Perishables-unreported deferral," to report your sales and leave the ending receivable blank, if you have not:

• marketed your entire 2017 crop; or
• received all of your income from your 2017 fiscal year.

When you know the ending receivable value, send the information to the Administration. We cannot process your form until you provide this amount.

Accounts payable

Complete this section if it is relevant to your farm.

Do not complete this section if you filed to the CRA on the accrual basis.

An account payable is an expense that you owe for goods and services that you have received, but have not paid for in this fiscal year.

To be allowable for AgriStability, an account payable must be for an expense that is allowable for AgriStability. For example, a payable for a livestock purchase is allowable; a payable for building a barn is non-allowable.

Include in your payables:

• any inputs that you did not pay for yet but were on hand in your inventory at the end of your 2017 fiscal year (you must also report them in the "Purchased Inputs" section); and
• any feed or livestock that you did not pay for yet but had on hand in your inventory at the end of your 2017 fiscal year (you must also report them in the "Crop inventory valuation and productive capacity" and "Livestock inventory valuation" sections).

Do not include in your payables:

• the interest part of an account payable; or
• amounts you owed for items purchased through loans, lines of credit, or credit cards that have already been reported as an expense to CRA for tax purposes.

How to complete the columns

Code and description

Use the Expense code list and the Commodity list to report the accounts payable you had at the end of your fiscal year. If your item is not listed, leave the code blank.

End of year amount

Report the dollar amount that you owed for the payable item at the end of your 2017 fiscal period.

Livestock owners and custom feedlot operators with prepared feed purchases

Use code 571 to report purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal year.

Livestock owners with custom feeding expenses

Use code 573 to report custom feeding expenses that were not paid for by the end of your fiscal year.

Ranch fur operators with prepared feed expenses

Use code 574 to report purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal year.