More time to repay CAIS overpayments

To keep you up to speed on income support programs, I’ve got two announcements from the Growing Forward adminstration. “Growing Forward” is the umbrella name for the new programs, including AgriStability.

First, the Government of Canada has once again extended the interest-free period for Canadian Agricultural Income Stabilization (CAIS) program and AgriStability overpayments. Interest will not be charged on overpayments until January 1, 2010.

     Michelle Snyder, communications strategist with Ag Canada's Growing Forward, says more than 6,900 farms still owe money for CAIS overpayments and 200 owe for AgriStability overpayments. Overpayments usually result when interim payments or Targeted Advance Payments are too high, and have to be clawed back, she says.

     If you don’t want to be in the ugly position of having to pay back money to the government, you can request smaller interim or advance payments just to be sure. Another strategy is to get as much as you can up front, and rely on extensions like the one offered today so you can keep the money interest-free for years before having to pay it back.

     Snyder says farmers who have overpayments are eligible for program payments in following years, but generally, overpayments are deducted from eligible payments before they are sent out. "So, if you have an AgriStability overpayment for 2007, we will deduct that amount from your 2008 payment (if any)," she says. "The interest deferral helps by stabilizing the amount that is owing as it does not accrue interest."

     The announcement applies in provinces where the federal government delivers the programs. (British Columbia, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador and Yukon.) 

Adjustment period extended for AgriStability

The second announcement, issued last week, says you now have 18 months to review your AgriStability payment calculations and request an adjustment to your information.

Here are the details, as provided by Growing Forward:

Starting with the 2007 program year, the adjustment period has been extended from 90 days to 18 months. You have 18 months from the time you receive your Calculation of Program Benefits Notice (COB) to ask for an adjustment to the information used to calculate your payments.

If an adjustment is accepted, you will be issued an adjusted COB. You may request another adjustment related to the changes to that COB within 90 days of the date of that adjusted COB or within 18 months of the date of the original COB, whichever is later.

If the adjustment is denied, you will receive a letter of notification. You may submit an appeal within 90 days of the date of the notification letter. The appeal can relate only to the same issue reviewed during the adjustment request. A new issue cannot be raised.

Note that the length of the appeal period has not changed. You have 90 days from the date that you are notified by the administration of the decision, which is subject to appeal.