Canada Expands AgriStability: Pasture-Related Feed Costs Now Eligible

Hook: Major Boost for Canadian Livestock Producers

On February 25, 2026, the Government of Canada announced a significant expansion to the AgriStability program: for the first time, pasture-related feed costs—specifically, pasture rental expenses—will be included as allowable costs when calculating margins, effective the 2026 program year. This change means thousands of livestock producers, especially those using rented pastureland, will finally have these substantial operating costs recognized in their support calculations. Read the official release.

Context: Why This Matters

Livestock producers face increasing financial volatility—between the rising costs of feed, unpredictability of weather, and global market swings. While AgriStability has long served as a risk management option by covering margin shortfalls, its design has not always kept up with changing realities on the ground. Until now, the program did not count pasture rental costs—sometimes one of the largest outlays for operations without owned land—as eligible, leaving certain segments under-supported.

This new inclusion follows a wave of federal and provincial tuning. For example, Saskatchewan has also adjusted its feed inventory valuation rules, and national changes in 2025 raised AgriStability’s compensation rate to 90% of margin loss and the maximum per-operation payment to $6 million. These reforms reflect deepening pressures faced by Canadian ranchers. Organizations like the Canadian Cattle Association and provincial bodies have called on more producers to reconsider joining AgriStability, noting it’s more attractive and responsive than in past years.

Impact: Who Benefits and How

Cow-calf, sheep, and goat producers who rely on rented pastureland are the most direct beneficiaries. Under the updated rules, their major grazing expenses will now reduce their historical and current margins, making it easier to trigger payouts and increasing the size of potential support. Producers managing feedlots and mixed operations should also see improved risk management—especially vital given recent feed and cattle price volatility.

The margin calculation change is expected to:

• Increase the number of eligible producers (past non-participants may now qualify or receive higher support)
• Better align support with actual, rising costs faced (especially as pasture rental rates climb)
• Boost program participation, as advocated by groups like the Canadian Cattle Association

Still, some critics say the new $6 million cap—even after its recent bump from $3 million—falls short for the largest or most vulnerable operations. Major farm groups continue to press for a $15 million limit, citing international trade risks, disease, and market swings.

Action: What Producers Should Do

If you are a livestock producer using rented pasture in Canada, the next steps are clear:

1. Review your AgriStability history: If you previously opted out due to ineligible pasture costs, it’s time for a fresh look. The change applies for the 2026 program year onward.
2. Organize pasture expense documentation: Pasture rental receipts and related feed statements should be clearly tracked for both current and previous program years. This will be crucial for correct margin calculations.
3. Contact your provincial AgriStability administrator: Margins and expense reporting are handled provincially (e.g., Agriculture Financial Services Corporation in Alberta or Saskatchewan’s program office). Provincial bodies may also clarify any local differences or pending rollout details.
4. Monitor program materials for updates: Details on how these changes are implemented in each province may develop as 2026 draws closer.

Outlook: What to Watch Next

Producers and advocacy groups should track upcoming program bulletins and agricultural ministers’ meetings for potential further changes—especially regarding payment caps and specific guidance on eligible documents. Industry pushes for higher support limits signal that more reforms could be on the table. Original announcement

For more on structuring your AgriStability application or maximizing eligibility under new guidelines, Granted AI provides up-to-date resources for farm operations.