Simplified Reference Margin
Last updated on January 21, 2026
Beginning with the 2025 program year, AgriStability participants will have the flexibility to select how their reference margin is calculated. They can choose between the new optional reference margin or continue using the traditional accrual-adjusted method.
The Simplified Reference Margin streamlines the reporting process for the reference period, as it does not require accrual or inventory data. However, if a participant is in a claim position, they will still need to provide accrual and inventory information for the program year, along with their tax-reported farm income.
Choosing the right Reference Margin for you
Each margin calculation method offers distinct benefits. The Simplified Reference Margin may be more straightforward for those who report income on a cash basis, as it aligns with their tax reporting practices. This can reduce the administrative burden for some operations.
In contrast, the accrual-adjusted reference margin takes into account additional financial details such as inventory, accounts payable, input purchases, and deferrals. While this method requires more comprehensive data—especially when joining or rejoining the program—it can result in a more accurate reflection of a farm’s financial situation.
The Simplified Reference Margin is a good option for farmers that are new to AgriStability
You would only need to submit your income and expense information for the past 5 years. We would no longer require your inventory and other accruals from the past 5 years. Submitting less information when signing up can save you time and money. A Simplified Reference Margin can also make the program easier to understand, especially for small farm operations.
If you choose a Simplified Reference Margin, you can only switch back to the accrual adjusted method after four program years. However, new participants who choose a Simplified Reference Margin when they join can switch to the accrual adjusted method the following year.
Steps to Receive a Simplified Margin in 2025
You can have your reference margin calculated using the same method of accounting you file to tax (cash or accrual), if you:
- Pay your 2025 enrolment fee
The enrolment fee is due by July 31, 2025 or within 30 days of receiving your enrolment notice, whichever is later.
- Complete the Simplified Reference Margin request form by December 31, 2025
Use the online form to submit a Simplified Reference Margin request.
ONLINE FORM (BCeID required)
Additional Information:
For cash tax filers
- The years included in your Reference Margin will no longer be adjusted to account for cash not yet received or spent by year end. This includes purchased inputs, deferred income, accounts receivable and payable, and inventory.
- You will not have to send AgriStability up to 5 years of historical accrual information when signing up new to the program. This will significantly reduce the amount of information you have to provide.
For accrual tax filers
- Your Reference Margin will continue to be based on the 5 previous years farm information. This includes historical accrual income and expense information. These are the same numbers you report to the Canada Revenue Agency for tax purposes.
- For farmers with livestock, the breeding herd adjustment will no longer apply to your reference years. This was used to adjust the value of breeding animals and culled breeding animals that you report for tax purposes.
Partnerships
Each partner in a partnership can choose to have a Simplified Reference Margin or not.
Combined Farms
All members in a whole farm must have the same method of accounting applied when calculating reference margins (apples to apples comparison). Therefore, all members of a whole farm must choose to have a Simplified Reference Margin.
Structural Changes
- If you file tax on the cash basis, the default structural change method for your Simplified Reference Margin will change from the ratio method to the additive method. The additive method responds better to Simplified Reference Margins and provides a more realistic benefit calculation.
- If you file tax on the accrual basis, the ratio method will remain the default structural change method for your Simplified Reference Margin calculation.
If you've received a 2025 Advance (Interim) Payment
If you receive a 2025 interim payment, you can still choose to have a Simplified Reference Margin.
If you receive a 2025 interim payment before sending the consent form, your reference margin used to calculate your interim payment will be different from the reference margin used to calculate your 2025 final payment.
If your interim payment is greater than your final payment, you will have to repay the difference.
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Contact information
Agriculture Insurance and Income Protection Programs help manage production risk and stabilize income.
Regional offices are located around the province.
1-877-343-2767
1-877-605-8467
AgriStability@gov.bc.ca
https://www.gov.bc.ca/AgriStability