Make your move
Getting started in CAIS is fairly straightforward. All you need to do is follow these steps and make sure you meet the deadlines.
Step 1
Each program year begins when a producer receives by mail the Options Notice from the CAIS Program Administration. This notice details the estimated reference margin and the options for protecting that margin for the program year. Some producers may have to submit financial information that is not on file in order to calculate their estimated reference margins.
Step 2
Submit your response to the Options Notice to the CAIS Program Administration indicating the protection level you've selected for the program year.
Step 3
If you haven't already done so, open a CAIS Program account at your local RBC Royal Bank and deposit the amount necessary to meet the account balance required to secure the chosen protection level. The CAIS Program Administration will issue a Deposit Notice* which confirms your elected protection level, estimated reference margin and indicates any deposits required for the program year. You must make any required deposits into your account prior to the deposit deadline.
Your financial institution will report your account balance to the CAIS Program Administration as it stands at the close of the business day on your deposit deadline date.
Deposit mailed after the deadline date will be returned. It is your responsibility to make your deposit at your local RBC Royal Bank for that program year.
PROGRAM PAYMENTS
Following the processing of the program forms, you will receive a Calculation of Program Benefits which details your final program year margin and reference margin. If sufficient funds are present in your account to secure your elected protection level, a mandatory withdrawal of funds from your account will be authorized. At the same time, government funds will be sent directly to you.
Tax implications
Based on Canada Customs and Revenue Agency tax guidelines, withdrawals from a CAIS Program account are not taxable. However, government contributions paid to the producer are taxable in the year the cheque is dated. Payment of government contributions must be reported as farming income for tax purposes. Government contributions from the CAIS program cannot be assigned, deferred (for income tax purposes) or otherwise encumbered**.
The CAIS Program Administration will issue an AGR-1 Supplementary Statement of Farm Support Payments tax information slip for taxable benefits over $100. Taxable benefits from the CAIS program are also shown on the Calculation of Program Benefits and Annual Account Statement.
Who can participate in CAIS?
To be eligible to participate in the CAIS program, producers must have done the following in the program year:
- Carried on the business of farming in Canada and reported farming income (or loss) for income tax purposes
- Completed a minimum six consecutive months of farming activity
- Complete a production cycle which includes one of the following activities:
- The growing and harvesting of a crop
- The purchase of rearing livestock
- The purchase and sale of livestock within a program year in the case of feeding or finishing enterprises
- Meet all program requirements by the established deadlines (see Program Deadlines sidebar)
The eligibility requirements of six consecutive months of farming activity and a completed production cycle may be waived by the CAIS program if a producer was unable to farm in the program year as a direct result of a disaster or reasons beyond his or her control.
RESOURCE
Information on where to get program forms and how to complete them is available from the CAIS Program Administration toll-free at 1-866-367-8506 or at the CAIS Program Web site at www.agr.gc.ca/cb/apf/. For complete program participation requirements, refer to the CAIS Program Handbook which can be downloaded from www.agr.gc.ca/producerassistance2003/cais03hb.html
*There will not be a Deposit Notice issued for the 2003 program year. Information related to your account balance requirement will appear on your Options Notice. Subject to change.
**Subject to change.
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