Crop insurance and deferred payment

[Gerald_sk]

It took a while, but was able to get back on this forum. I may have ran into a brick
wall in regard to crop insurance. Yesterday I did my canola which for my size
of operation is a goodly sum. I asked for payment to be deferred. Today I find
out that you can deferred payment but the amount is income this year.
Monday I while phone the inspector to see how they are dating these claims,
but he knew I wanted it deferred and said nothing.
(Done via phone I have no paper)
I was reading today, but can only find information on US deferred payment.
The US rule is if you normally sell less that 50% of your current product.
You can defer to the next year.
Gerald

[Herc]

So whats the point of a deferred scic payment then if thats the case? Can’t see that being true.

[Partners]

Heard scic still hasn't processed some Farmers yield loss claims !

They are about 2 months after your claim date...

[woodland]

In Alberta we can defer it to whenever we’d like. I currently have all my crop insurance deferred till January as we sold our steers early due to the drought. Why would they offer to defer your payment if you still have to claim the income this year?
This is from SCIC’s website and the way I read it is that you can defer it up to a year. Good luck🍀

[poorboy]

can’t defer pea checks

Some crops like peas were never approved by revenue canada for deferred payment. Lots of specialty crops are like that as they were not grown when the revenue Canada made the rules on eligible crops to defer.

Not sure what the rules are on crop ins payments are, but imagine they could be deferred. Happens often.

[Guest]

Heard scic still hasn't processed some Farmers yield loss claims !

Ours was done and check here in 8 days
Did wait until nov 13 to file it tho

[TOM4CWB]

Ours was done and check here in 8 days
Did wait until nov 13 to file it tho

If you file income tax for your farm on a cash basis... when you actually [the date of deposit] then that deposit of that amount of the money it is income... if filing on accrual accounting... depending on year end...that could be another story. Please do your own due diligence.

Cheers

[Old Cowzilla]

Sent crop ins. my crop inventory numbers a month ago and they were not sure they would have anybody do the claim stuff before Chirstmas. Told them some product will be fed by them but so be it. They are sending some guys advances but you could get that deferred until Jan so least you have some payment by then. They won't need a ladder very much to check my bins

[Gerald_sk]

Thanks for the replies, makes me fell better today. The information came from
a major accounting firm, but new to me accountant. Person that was doing
my accounting has moved up the chain.
Starting to think her comment came from the idea I have a Canola advance.
I general like to have the books balance by early December, then I have
time to make any fine adjustment
Going to double check tomorrow.

Gerald

[Richard5]

It is true, technically you cannot legally defer crop insurance pmts.

My accountant told me this back in July when i new it wasn’t going to yield well. It has to do with the tax act and the fact that there is no mention of being able to defer crop insurance. Wheat barley canola and oats. Because i knew this i made sure i had enough room to bring crop insurance pmts and deferred any fall sales.

Sounds like it is even in the cra audit procedures manual.

If gov’t really needs money, going after this will be easy. Collecting the overpaid ceba loans and cers will be the next easy one on farms

[farming101]

My understanding is that insurance payments due to yield loss can be deferred.
Price insurance program payments cannot be deferred.

[GDR]

It is true, technically you cannot legally defer crop insurance pmts.

My accountant told me this back in July when i new it wasn’t going to yield well. It has to do with the tax act and the fact that there is no mention of being able to defer crop insurance. Wheat barley canola and oats. Because i knew this i made sure i had enough room to bring crop insurance pmts and deferred any fall sales.

Sounds like it is even in the cra audit procedures manual.

If gov’t really needs money, going after this will be easy. Collecting the overpaid ceba loans and cers will be the next easy one on farms

So what is the difference between a deferred crop insurance claim or one where the crop adjusters dont show up until the first week of January to measure bins. I haven't seen an adjuster or settlement yet. Either way the money is for the same crop and received at the same time. Not sure how that could be differentiated. I did have my hail claims deferred but yield and price likely wont be done in 2021.