Ag Canada Expands AgriStability to Include Pasture-Related Feed Costs

Key Takeaways

• AgriStability now covers pasture feed costs.
• Eligibility starts 2026 program year.
• Targets cow‑calf, sheep, goat producers.
• Supports those grazing on rented land.
• Enhances risk management equity for livestock sector.

Summary

Canada’s Agriculture and Agri‑Food department has amended the AgriStability program to treat pasture‑related feed costs as an eligible expense. The change, announced by Minister Heath MacDonald, takes effect for the 2026 program year and applies to livestock producers who graze animals on land they do not own. By covering feed costs for rented pasture, the program aims to provide more equitable risk‑management support for cow‑calf, sheep and goat operations. The expansion broadens the scope of income‑stabilization tools available to Canadian producers.

Pulse Analysis

AgriStability has long served as Canada’s flagship business‑risk‑management tool for primary producers, offering income‑stabilization when revenues fall due to production shortfalls, rising input costs, or adverse market shifts. Since its launch, the program has covered a range of expenses such as feed, seed, and equipment, but it traditionally excluded costs associated with grazing on land that farmers do not own. This gap left a notable portion of the livestock sector—particularly those operating on rented pasture—exposed to financial strain when feed prices surged or grazing conditions deteriorated.

The 2026 amendment expands the eligible expense list to include pasture‑related feed costs, defined as the outlays required to sustain animals on non‑owned grazing land. By recognizing these expenditures, AgriStability now aligns more closely with the operational realities of cow‑calf, sheep and goat producers, who often lease pasture to manage herd size and land use efficiently. The policy change is expected to lower the net risk premium for these farms, improve cash‑flow predictability, and encourage continued investment in livestock enterprises despite volatile feed markets.

From a macro perspective, the broadened coverage strengthens the resilience of Canada’s livestock supply chain, supporting domestic meat and dairy production that underpins food security. It also signals a shift toward more nuanced, data‑driven risk‑management frameworks that can be adapted as climate variability and input cost dynamics evolve. Stakeholders anticipate that the enhanced program may set a precedent for future adjustments, potentially incorporating other indirect costs such as water rights or biosecurity measures, thereby cementing AgriStability’s role as a flexible safety net for Canadian agriculture. Overall, the amendment positions Canadian agriculture for stronger long‑term competitiveness.