AgriStability: comparing the optional and default reference margins

A new reference margin option is being introduced to AgriStability. Starting with the 2025 program year, participants will be able to choose how they want their reference margin to be calculated – either as the optional reference margin or the accrual adjusted reference margin.

The optional reference margin (ORM) simplifies reporting for the reference period as accrual and inventory details are not required. The farm income reported for tax purposes, along with accrual, and inventory details for the program year are still required but only if the participant is in a claim position.

Participants have until April 30 to select the optional reference margin. As accrual adjusted reference margin (AARM) is the default method for the program, participants who do not select ORM will automatically have their reference margin calculated using the accrual adjusted reference margin.

Choosing your reference margin

Both the optional reference margin and the existing accrual adjusted reference margin have their advantages and participants will want to consider which best suits their farming operation.

The new optional reference margin reduces complexity for some participants, especially those who file their taxes on a cash basis, as the reference margin is calculated using the same method used for tax reporting.