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Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide – Chapter 4 – Inventories, purchased inputs, deferrals, receivables and payables

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For AgriStability participants

In addition to completing pages 1 to 5, you must fill in page 7 of Form T1273 to participate in AgriStability.

Fill in only the areas that apply to your farming operation. If you have additional farming operations, also complete Form T1274.

If you file to the CRA on the accrual method of accounting, you do not need to fill in the following parts of this form:

Read the instructions below for further details.

If there are not enough lines on the form to provide all of your information, attach a second copy of the page to your form, with the rest of the information on it.

AgriStability program codes

You will need to refer to the following code lists to fill in page 7 of the form. These lists can change from year to year so it is important to check each year for the right code.

Commodities with published prices

You are not required to provide End of year prices (EYPs) in the Crop inventory valuation and productive capacity and Livestock inventory valuation sections of the form if the commodities you report are marked by an "X" on the Inventory code list for your province or territory.

We develop prices for commodities marked with an "X" using information from:

The prices are published in the AgriStability Price List. We use these prices to value your inventory. You can request this list from us or find it on the program website.

If you do not feel these prices are appropriate for your farm, you may use your own prices if you can show that either your:

In either of these cases, you may use prices based on sales or purchases of the specific commodity:

To use your own prices, send copies of receipts or documents that support your prices to your Administration. Send this information at the same time you send your form to the Winnipeg Tax Centre, or within your adjustment time frame. For more information on adjustments, see Adjustments.

We will determine if the prices are reasonable for your commodity.

Commodities with unpublished prices

You must provide End of year prices (EYPs) for the crop and livestock inventories that are shaded on the Inventory code list (for your province or territory). Base your prices on either:

You are not required to provide documentation to support these prices for unpublished commodities. However, if you do, it will increase the chances of your price being accepted.

Supporting documentation includes either:

Send your supporting documentation to your Administration at the same time you send your forms to the Winnipeg Tax Centre or within your adjustment time frame. For more information on adjustments, see Adjustments.

We will determine if the prices are reasonable for your commodity.

If the productive capacity of this operation decreased during the program year due to disaster circumstances

Tick "Yes" if the productive capacity of your farm decreased due to disaster circumstances during the program year. A decrease in productive capacity means a decrease in the overall amount that you produced.

For example, tick "Yes" if CFIA ordered your livestock destroyed due to disease or if you could not seed or harvest some or all of your land because of extreme wet or dry conditions.

If you participated in crop or production insurance in the program year for this operation, provide the Contract or Identification numbers.

If you participated in AgriInsurance (crop or production), including hail insurance, provide your contract or identification numbers related to the crops listed in the Crop inventory valuation and productive capacity section.

Crop inventory valuation and productive capacity

Fill in this section if you either:

This part of the form is used to:

To help you fill in this section, refer to your:

How to fill in the columns

Code and Crop/Grade

Use the Inventory code list to report all commodities by code and description that you either:

Enter each grade or variety of crop separately. For example, enter #1 CWRS wheat separately from #2 CWRS wheat. Leave the code blank if the commodity is not listed in the Inventory code list.

Units

Use the Units of measurement code list to enter the code used to measure your production. Fill in your Quantity produced and Ending inventory using the same unit of measurement.

Acres

Enter the number of acres used to produce each crop. Report only those acres that produced or should have produced a crop during your 2023 fiscal period.

If you had unseedable acres (too wet or too dry), enter them in the "Unseedable acres" column.

Enter all summerfallow, pasture and wasteland acres on the designated lines.

For commodities not measured in acres, use the unit of measurement that is standard for the commodity.

Example

Greenhouse and nursery operations (including floriculture) report in square metres, based on the productive area.

Maple syrup operations report in hundreds of taps producing. For example, if you have 350 taps producing, you enter 3.5 (350 ÷ 100 = 3.5).

Unseedable acres

Report acres you planned to seed for each commodity that should have produced a crop but did not because the land was too wet or too dry.

Example

At the beginning of the year, you planned to grow canola on 300 of your acres. However, you only seeded 200 acres because of flooding. In your crop inventory, enter 200 acres of canola and 100 unseedable acres of canola.

If you planned to produce multi-stage crops, enter the unseedable acres for each multi-stage commodity you planned to seed in your fiscal year.

Quantity produced

Enter the quantity of crop you produced in your fiscal period.

Ending Inventory

Enter the quantity of crop you had at the end of your 2023 fiscal period.

End of year price

Provide an End of year price (EYP) to value crops that are shaded on the Inventory code list for your province or territory.

Leave this column blank if your commodity is marked with an "X" on the Inventory code list for your province or territory, unless you meet the conditions to use your own price. For more information, see Commodities with published prices.

Do not fill in this column if you file to the CRA on the accrual method of accounting.

Crops or forage carried over from 2022 but no longer seeded or produced in 2023

If you had inventory at the end of your 2022 fiscal period for a commodity you did not produce in 2023:

Landlords/tenants

If you are a tenant in a crop share, or a landlord in a joint venture crop share, report your share of the acres and quantities.

Example

You rent 300 acres in a crop share agreement. You receive ⅔ of the crop and pay ⅔ of the allowable expenses. Your landlord receives the remaining ⅓ of the crop and pays ⅓ of the allowable expenses. In 2023, the rented land produced 300 tonnes of wheat.

You enter your ⅔ share of both the acreage and the production:

  • 200 acres
  • 200 tonnes of wheat

Your landlord enters his ⅓ share of both the acreage and the production:

  • 100 acres
  • 100 tonnes of wheat

Commodity pools

If you sold commodities into a pool, enter the full value of your commodity even if you only received a portion of the payment in your 2023 fiscal period.

Use code 4020, "Expected grains and oilseeds pool payments," to enter any payments you received or expect to receive for your commodity after your 2023 fiscal period as a receivable in the "Deferred income and receivables" section of the form.

Example

In 2023 you sold 10 tonnes of wheat through G3 Canada Limited. You received initial and adjusted pool payments of $2,554.50 in 2023, and estimate that the final payment you will receive in 2024 will be $645.50.

Enter:

  • $2,554.50 as a wheat sale using code 056
  • $645.50 in the "Deferred income and receivables" section using code 4020, "Expected grains and oilseeds pool payments"

Perishable horticulture crops

A perishable horticulture or floriculture crop:

Perishable horticulture crops are adjusted on an accounts receivable basis, not on an inventory valuation basis.

Enter only the "Quantity produced" from your 2023 fiscal period. Do not report ending inventories or production from your previous fiscal period.

Enter any income from the sales of 2023 crops that you will receive in your 2024 fiscal period in the Deferred income and receivables section.

Swath grazing

If you use swath grazing as a management practice, use code 5588 to enter the number of acres you used for swath grazing. Enter your production (in tonnes) and any swath remaining at the end of your fiscal period as ending inventory.

Organic production

Report your crop as "organic" only if it has been Certified Organic. We may ask for your organic certification.

Unharvestable acres

If you grew a commodity and expected to harvest it in your fiscal period but could not for reasons beyond your control, enter the commodity, acres and a "0" as the total production.

Snowed-under crops

If you could not harvest some or all of your crop at the end of your fiscal period because it was snowed under, enter the:

Then use code 6826, "Harvest discount allowance," to enter all of the commodities that were snowed under.

Example

You seeded 350 acres; 100 acres of canola and 250 acres of barley. You harvested 80 of your canola acres and 200 of your barley acres before the remainder of your crops were snowed under. Enter:

  • 100 acres for canola
  • 250 acres for barley
  • the amount you harvested from those acres

Enter the remaining 70 acres as snowed under using code 6826, "Harvest discount allowance."

350
seeded acres
− 80
acres of harvested canola
− 200
acres of harvested barley
70
acres snowed under

Standing crops

If your farm always has a standing crop at the end of your fiscal period (for example, July 31), do not report the standing crop.

If your farm has an unexpected standing crop because you could not harvest it before the end of your fiscal period, include the standing crop in inventory.

Report the total acres for each crop you grew using the inventory codes for the commodity. Then use code 6826, "Harvest discount allowance," to enter the total acreage of all commodities that had standing crop at your fiscal year-end.

Example

You had 400 acres seeded to flax. You were only able to harvest 250 of these acres before your fiscal year-end, leaving you with 150 acres still standing.

400
acres of flax
− 250
acres harvested
150
acres with standing crop

Enter 400 acres of flax (and the actual amount you harvested from those acres). Then enter 150 acres as standing using code 6826, "Harvest discount allowance."

Multiple crops

In provinces such as British Columbia, you may be able to harvest your commodity early enough to plant another commodity on those same acres. If you harvest both commodities in your 2023 fiscal period; report each commodity's acreage and production in your crop inventory.

Example

You planted two acres of strawberries and harvested the berries early in the summer. You then removed the strawberry plants and planted potatoes, which you harvested in the fall.

Enter:

  • 2 acres of strawberries and the amount you harvested from those acres
  • 2 acres of potatoes and the amount you harvested from those acres

Multi-stage crops

Multi-stage crops are commodities that take longer than one year to reach full production. Because multi-stage crops are grown over several years, there are different inventory codes to reflect the stage of production.

Use the Inventory code list to report the stage of production for your commodity.

Report all the acres of your crop even if you did not harvest the crop in your 2023 fiscal period.

The multi-stage crops include:

In British Columbia, multi-stage crops also include:

In New Brunswick and Nova Scotia, multi-stage crops also include:

Highbush blueberries and grapes

Start reporting your acres in the year you plant. Continue reporting your acres during the non-bearing years.

Lowbush blueberries

Start reporting your acres once you have cleared the land and started nurturing the plants. Once you start producing blueberries, report your acres based on their stage of growth.

Sod

Report your total sod acres (seeded, growing, and harvested) based on their stage of growth at the end of your fiscal period.

Example 1

You seeded 150 acres at the end of 2023 and harvested them in 2024. Enter 150 acres using code 6941, "Sod, acres seeded."

Example 2

You seeded 150 acres in 2022 but did not harvest these acres until 2024. Enter 150 acres using code 6943, "Sod, acres growing."

If you harvested and then re-seeded the same sod acres in your 2023 fiscal period, report the acres twice.

Example

If you harvested and then reseeded 150 acres, enter 150 acres using code 6945, "Sod, acres harvested," and 150 acres using code 6941, "Sod, acres seeded."

If you produce sod in the following regions of British Columbia:

Alberni-Clayoquot (23)
Greater Vancouver (15)
Capital (17)
Nanaimo (21)
Comox-Strathcona (25)
Powell River (27)
Cowichan Valley (19)
Squamish-Lillooet (31)
Fraser Valley (9)
Sunshine Coast (29)

Christmas trees

There are two types of Christmas tree operations:

Tree farms plant their seedlings in a greenhouse, garden or tree farm, and maintain them until harvested.

Report your total acres of trees based on their stage of growth at the end of your fiscal period. Report your production and ending inventories based on the number of trees you had in each of the stages of growth.

To report your trees, use:

Managed natural tree stand operations select their trees from existing forest and actively maintain them until harvested.

Report the acres of trees that you actively maintained as either pre-harvested (in the ground) or harvested (removed from the ground). Base the number of acres you report on 1,000 trees per acre.

Example

If you had 9,500 pre-harvested trees at the end of your fiscal period, enter 9.5 acres (9,500 ÷ 1,000 = 9.5).

For pre-harvested acres, enter the quantity produced based on the number of trees. Enter ending inventories and an end of year price for your pre-harvested trees.

For harvested acres, enter quantity produced based on the number of trees harvested.

Do not enter ending inventories or an end of year price for your harvested trees. Harvested trees are a perishable commodity. They are adjusted on an accounts receivable basis, not an inventory basis.

Echinacea and ginseng

Enter acres in the establishment stage until the year of harvest. When you harvest the acres, enter them as root harvested.

Cranberries

Enter acres in the establishment stage until production starts. This stage can last up to three years.

Hops

Start entering your acres in the year you plant.

Sweet cherries and apples

Enter the total acres planted for each commodity. Your Administration will collect details on the variety, age, and density of apples and sweet cherries.

Livestock inventory valuation

Fill in this section if you had livestock in your inventory during your fiscal year. Include livestock carried over from a previous fiscal period, or carried into the next fiscal period.

This part of the form is used to:

How to fill in the columns

Code and description

Use the Inventory code list to report all livestock you had on hand at the end of your 2023 fiscal period. Enter each class of livestock separately.

Ending inventory

Enter the number of head that you had on hand at the end of your 2023 fiscal period. Use actual (not rounded) numbers.

End of year price

Include an End of year price (EYP) to value livestock inventories that are shaded on the Inventory code list (for your province or territory). If you are reporting a livestock category that is marked with an "X" on the Inventory code list, leave the column blank.

Do not fill in this column if you file to the CRA on the accrual method of accounting.

Livestock lease agreements

If you are involved in a lease agreement, or if you own part of an animal, report only your share of the lease agreement. For example, if you co-own a bull with another producer, enter ½ a bull in your inventory.

Lessee: if you lease a breeding herd but take only a percentage of the calf crop, enter your share of the:

Example

If you lease 100 cows but take only 60% of the calf crop, enter only 60 cows (60% of 100) under code 8134. Then enter 60 calves using the codes based on their weights.

Lessor: if you own cows but lease them out and take a percentage of the calf crop, enter:

Livestock productive capacity

This information is used to adjust your reference margins if your operation experienced a change in structure.

Livestock lease agreements

If you lease animals but do not take 100% of the revenue from the animal, report only your share of the agreement.

Example

If you lease 100 cows but only keep  60%  of the calf crop, enter 60 cows.

100 × 60% = 60

Productive animals

Code 104 – Cattle

Enter the number of cows that calved in your 2023 fiscal period.

Do not use this code to report calves that were born in your 2023 fiscal period, even if they were either:

Enter all your calves as inventory in the "Livestock inventory valuation" section, even if you hold them over to your next fiscal period.

If you hold your calves over to your next fiscal period, enter them as code 105, "Feeder cattle," next year if they have an appreciable gain in that fiscal period.

Codes 123 and 145 – Hogs

Enter the number of sows in the breeding herd within the 2023 fiscal period. Enter the sows based on the type of operation (farrowing or farrow to finish). Calculate the average number of breeding sows by dividing the births in your 2023 fiscal period by your average birthrate per sow.

Example

10,000
births
÷ 23
average birthrate per sow
435
average number of breeding sows

If your hog operation only produced for part of the year, ensure your average number of breeding sows is lower to reflect your reduced production.

Codes 105 and 106 – Feeder livestock – Cattle

Enter the number of animals you fed that had an appreciable gain in 2023 (a 90 kg/200 lb weight gain or a minimum of 60 days on feed). Group the animals fed based on either:

Do not include the following animals in this section:

Codes 124 and 125 – Feeder livestock – Hogs

Enter the number of animals fed. Group the animals fed based on either:

Do not include the following animals in this section:

Example

You purchased, fed, and sold 100 Isoweans to weanling weight (8 to 50 lbs) and fed another 100 feeder hogs (50 lbs to slaughter). Enter 100 Hogs, nursery (fed up to 50 lbs), and 100 Hogs, feeders (fed over 50 lbs).

Custom fed livestock

Enter the number of animal feed days. Animal feed days are the number of animals × the number of days each animal was fed.

Example

100
animals fed
× 90
days
9,000
animal feed days

Supply managed commodities

Enter the amount of quota and contract held.

Ranch fur operators

Enter the number of females that birthed.

Other (specify below)

Use the Productive capacity list to enter any commodities that do not fit into the above categories. If the commodity is not listed, leave the code blank.

Purchased inputs

Fill in this section if it is relevant to your farm.

Do not fill in this section if you filed to the CRA on the accrual method of accounting.

Enter inputs you purchased to produce your agricultural commodities that you did not use by the end of your fiscal period.

Some examples of purchased inputs are:

Do not report your purchased inputs as ending inventory in the Crop inventory valuation and productive capacity and Livestock inventory valuation sections. For example, if you purchased $5,000 of wheat seed for next year's crop, enter the amount as a purchased input but do not include the seed in the crop inventory section.

How to fill in the columns

Code and description

Use the Expense code list or the Commodity list to identify each item you enter. If your item is not listed, leave the code blank.

End of year amount

Enter the dollar amount that you had on hand at the end of your 2023 fiscal period. Include any applicable 2023 fall applications and any prepaid purchases in 2023 that are designated for the 2024 fiscal period.

Example

Based on a December 31 fiscal year-end:

In October 2023, you purchased $45,000 worth of fertilizer. You used half of it in your 2023 fiscal year and carried the other half over to the 2024 fiscal year as inventory. Enter a total of $45,000 in the "End of year amount" column.

Livestock owners and custom feedlot operators with prepared feed purchases

Use code 571 to enter the value of prepared feed and protein supplements you have on hand at the end of your fiscal period.

Ranch fur operators with prepared feed expenses

Use code 574 to enter the value of prepared feed and protein supplements you have on hand at the end of your fiscal period.

Deferred income and receivables

Fill in this section if it is relevant to your farm.

Do not fill in this section if you file to the CRA on the accrual method of accounting.

Deferred income is income you have chosen to postpone receipt of to the following fiscal period.

A receivable is income that is owed to you for goods delivered or services provided in this fiscal period but is not paid to you until your next fiscal period.

Deferred income or receivables must be for income that is allowable for AgriStability. For example, a receivable for the sale of grain is allowable; a receivable for machinery rental is non-allowable. For more information on allowable and non-allowable items, see your program handbook or visit the program website.

Enter your AgriInsurance (production/crop insurance) indemnity as a receivable, even if you did not receive your full indemnity before your 2023 fiscal year-end.

How to fill in the columns

Code and description

Use the Commodity list and the Program payment lists A and B to enter all deferred income and receivables you had at the end of your fiscal period. If your item is not listed, leave the code blank.

Use code 9574, "Resales, rebates, GST/HST for allowable expenses," to enter all deferred income or receivables for resale, rebate or GST/HST related to your allowable expenses.

Ending receivables and income deferred to 2024

Enter the dollar value of the account receivable or deferred income item owed to you at the end of your 2023 fiscal period.

Commodity pools

If you sold commodities into a pool but did not receive the full value for the sale of your commodity at your fiscal year-end, use code 4020, "Expected grains and oilseeds pool payments," to enter any adjustments or final payments you received or expect to receive after your 2023 fiscal period. Provide an estimate if you do not know the amount of the adjustment or final payment.

If you deferred your pool payments (adjustments, interim, or final) to your next fiscal period, enter these deferrals using the code for the commodity.

Custom feedlot operator income

Use code 246 to enter any amounts owed to you for custom feeding livestock.

Prescribed drought region (PDR), Prescribed flood region (PFR) and Canadian Food Inspection Agency (CFIA) deferrals

If you deferred a PDR/PFR or CFIA payment out of your current fiscal period, enter the amount using the codes from the PDR/PFR/CFIA deferred livestock codes chart.

Perishable horticulture crops

Enter the sales of the 2023 crop that occurred in the 2024 fiscal period as an ending receivable, after your entire 2023 crop has been marketed and sold.

Use code 4999, "Perishables-unreported deferral," to enter your sales and leave the ending receivable blank, if you have not either:

When you know the ending receivable value, send the information to your Administration. We cannot process your form until you provide this amount.

Accounts payable

Fill in this section if it is relevant to your farm.

Do not fill in this section if you filed to the CRA on the accrual method of accounting.

An account payable is an expense that you owe for goods and services that you have received, but have not paid for in this fiscal period.

An account payable must be for an expense that is allowable for AgriStability. For example, a payable for a livestock purchase is allowable; a payable for building a barn is non-allowable.

Include in your payables any:

Do not include in your payables either:

How to fill in the columns

Code and description

Use the Expense code list and the Commodity list to enter the accounts payable you had at the end of your fiscal period. If your item is not listed, leave the code blank.

End of year amount

Enter the dollar amount that you owed for the payable item at the end of your 2023 fiscal period.

Livestock owners and custom feedlot operators with prepared feed purchases

Use code 571 to enter purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal period.

Livestock owners with custom feeding expenses

Use code 573 to enter custom feeding expenses that were not paid for by the end of your fiscal period.

Ranch fur operators with prepared feed expenses

Use code 574 to enter purchases of prepared feed and protein supplements that were not paid for by the end of your fiscal period.

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