Payment of Financial Assistance

The calculation of compensation for keeping eligible animals on the farm takes into account:

• the animal category.
• the number and weight of eligible animals.
• the minimum and the maximum number of days to keep the animal on the farm.
• the maximum cost per day.

Financial assistance is determined by multiplying the number of days to be compensated by the corresponding compensation per animal and may be paid in one or more instalments. The minimum compensation amount is $250 per participant.

 Note : The compensation rate is set at 90%.

This assistance is considered allowable income for AgriStability purposes in calculating the 100% margin for the year, but will not be considered when calculating the reference margin. Moreover, the assistance will not be considered allowable income for calculating Adjusted Net Sales (ANS) under the AgriInvest Program.

Calculating Days to Be Compensated

For large game and slaughter cattle, calculating the number of days to be compensated begins when the holding time for each animal is attained. Eligible animals may then be compensated for a maximum of 63 days from the first day of holding on the farm.

For feeder pigs, calculating the number of days to be compensated begins when the waiting period of 7 days on the farm is reached. Eligible animals may be compensated for a maximum of 23 days in total after the holding time.

To compute the number of days to be compensated, the various columns are calculated as follows:

1. The average reference slaughter weight (column A) is calculated per farmer on a carcass basis from the slaughter data for the period from January 1 to March 29, 2020 (109 kg for this example).
2. The weight difference (column C) is calculated by subtracting the slaughter weight from the average reference slaughter weight. Therefore, C = B - A. 
3. The number of days on the farm (column D) is based on the difference between each animal’s slaughter weight during the reporting period and the average reference slaughter weight calculated per participant. This weight difference is converted to a number of days on a carcass weight basis. A ratio of 0.81 (to convert live weight to carcass weight) and an average weight gain of 0.9 kg (provincial average) are used here. Therefore, D = (C/0.81/0.9).
4. Finally, the number of days to be compensated (column E) begins when a 7-day holding period is reached. Eligible animals may be compensated for a maximum of 23 days in total after the holding time.

Here is how the producer will be compensated for these hogs. According to the calculation:

• The first hog will have remained on the farm an additional 7 days. Since the waiting period is 7 days on the farm, the producer will not be compensated for this animal.
• The second hog will have remained on the farm an additional 15 days. When you subtract the 7-day waiting period, this gives the producer 8 compensation days. 
• The third hog has a negative number of holding days because its slaughter weight is inferior to the producer's average reference weight. The producer will not be compensated. 
• The fourth hog will have remained on the farm an additional 56 days. Even after subtracting the 7-day waiting period, the 23-day limit has been reached. The number of days to be compensated will therefore be equal to this 23-day maximum.

To compute the number of days to be compensated, the data in the various columns are calculated as follows:

1. The theoretical average daily gain (column C) and the average reference slaughter weight (column D) are calculated by category (male and female) using the farm entry weight (column B) and the slaughter weight of steers slaughtered between January 1 and December 16, 2020, for each producer.
2. The number of days to reach the average reference weight (column E) is calculated by determining the animal's weight gain as follows: subtract the weight at entry from the average reference weight (column D minus column B) and divide this result by the theoretical average daily gain (column C). Therefore, E = (D - B) / C.
3. The calculated slaughter date (column F) is calculated by adding the date of entry into the farm (column A) and the number of days to reach the average reference weight (column E), therefore  
   F = A + E.
4. The number of holding days (column H) is calculated by subtracting the actual slaughter date (column G) and the calculated slaughter date (column F). Therefore, H = G - F. 
5. Finally, the number of days to be compensated (column I) is calculated based on column H since a payment is granted when the difference between the two dates reaches 15 days, up to a maximum of 63 days.

The producer will be compensated as follows for the three steers used as examples in this table. According to the calculation:

• The first steer will have remained on the farm an additional 85 days, thereby reaching the 63-day limit. The producer will be compensated for this 63-day maximum.
• The second steer will have remained on the farm an additional 57 days. Since it is between 15 and 63 days, the producer will be compensated for the 57 days. 
• The third steer will have remained only 9 additional days on the farm. Since it does not reach the minimum 15-day limit, the producer will not be compensated for this one.