Key ways to maximize your AgriInvest account

4.5 min read

The information presented in this article is in respect to all provinces outside of Quebec. To learn more about AgriInvest strategies for producers in Quebec, please read our article on this topic.

A change of season or a rainy day is the perfect opportunity to check-in on your farm’s financial affairs and ensure that you’re keeping pace with your objectives for the year. With an estimated $2 billion in AgriInvest accounts across Canada, it’s a good idea to withdraw any funds you may have a use for and not use the program as a savings account.

One good place to start is by reviewing your AgriInvest accounts to ensure the funds are being utilized properly. There is estimated to be more than $2 billion saved in AgriInvest accounts across Canada, so it’s likely worth your time to ensure your account can be accessed, and those funds are put to good use on the farm.

AgriInvest is part of the Business Risk Management program provided by a partnership between the federal and provincial governments. Each year, producers can file their Allowable Net Sales (ANS) on the prescribed form. Once assessed, producers deposit 1% of the ANS on a maximum of $1 million of ANS into an account at their financial institution. This means the annual maximum deposit per farm operation with greater than $1 million in ANS will be $10,000. These funds will be matched by the government and deposited into the same account. Funds are designated as Producers Deposits and Government Matching Deposits and are all held in the same account at the financial institution.

Important changes for 2025 program year and beyond

Program adjustments are outlined below. Full details are available on the resource section of the AgriInvest program.

Filing Deadlines

June 30

the deadline to file the forms, regardless of your operations year-end, without a penalty

Sept. 30

final deadline to submit your 2025 form, with the penalty of matching deposits reduced by 5% a month or partial month past the June 30 deadline
final deadline to file an income tax return for the 2025 program year reporting eligible farming business income (loss), except Status Indians farming on a reserve in Canada who are exempt from filing an income tax return

Agri-environmental risk assessment requirement

For 2025 program year and beyond, producers are now required to declare they have a current eligible agri-environmental risk assessment if their ANS is $1 million or more for the previous three program years. An average for the producer’s total ANS will be calculated for the previous three years. For example, 2022-2024 will be used to determine the requirement for the 2025 program year.

Eligible risk assessment programs for AgriInvest are:

Canadian Roundtable for Sustainable Beef (CRSB) Sustainable Beef Production Standard
Certified Organic
Environmental Farm Plan
Nutrient Management Plans (such as manure management)
Nutrient Management Plans from 4R-designated or certified experts
Saskatchewan agri-environmental risk assessment
Plan agroenvironnemental de fertilisation
Plan d’accompagnement agroenvironnemental

90 days from deposit notice: Once the forms have been filed and assessed, the administration will issue a deposit notice. This tells you the amount you can deposit and what you can expect to receive for matching funds from the government. You then have a strict 90 days from the notice being prepared to make this deposit and have the funds matched. There is NO extension to this deadline, so it is important to ensure the funds are deposited on time to benefit from the program.

Once you’ve met the deadlines, here are two key practices to maximizing your AgriInvest funds:

1. Count all the farmers in your operation

Since there is a limit of a matchable $10,000 amount each year, it means $1 million of ANS per farming unit will reach the maximum. If you have multiple farming units - that is, multiple farmers in the farm corporation - you can potentially have matching funds up to $10,000, provided your farming operation has enough ANS. For example, a young farmer starting with their parents’ operation will likely have sales from their operation and qualify for a matching deposit on their ANS; therefore, they should be filing their own AgriInvest forms.

2. Plan for taxes

The designated funds from the government, along with the interest earned on the account, will be taxable when withdrawn. Therefore, tax planning should be done before requesting a withdrawal.

Also, remember that you can withdraw as little or as much as you would like in any given year. The first funds paid out of the account will be the taxable portion, with the funds designated as producer deposits second. When you can pay the taxes on the funds at the lowest rate in a lower-income year, withdrawing the funds and using them in your operation makes good tax sense. If there are debts that can be paid down or assist in an expansion, these funds can help reduce the interest costs that your farming operation would otherwise incur. Interest earned on these AgriInvest accounts will almost always be lower than the interest rate charged on a loan for your operation.

No triggers force you to withdraw funds from your AgriInvest account. With an estimated $2 billion in AgriInvest accounts across Canada, producers are clearly not regularly using the funds in their operations. It’s a good idea that if you need these funds, they be withdrawn and used for their intended purpose, as the program is not intended to be used as a savings account.

Article by: Lance Stockbrugger

Accounting & taxes