Due to a modeling inconsistency for heavy weight cattle pricing, AFSC is republishing AgriStability cattle prices for animals over 900 pounds for the 2024 and 2025 program years.
This inconsistency in modeling meant that heavy weight cattle pricing for 2024 was based on a different weight assumption than the one used to establish historical prices. Consequently, inventory valuations did not accurately reflect market realities, leading to inappropriate AgriStability program benefits being issued to clients for the 2024 program year.
Changes in Alberta’s cattle industry have made it increasingly difficult to access cattle pricing data, which has impacted AFSC’s ability to provide timely prices for use in its programs. To address this issue, AFSC adopted a new model in 2024 to determine cattle prices for AgriStability.
Under the model, heavy weight cattle were valued inappropriately on ending inventory. As a result, the inventory is valued too low and does not match market realities. Upon discovering the inconsistency, AFSC recalculated the heavy weight cattle prices for 2024, leading to reassessment of files with heavy weight cattle. The recalculation determined that certain clients had received benefits to which they were not entitled.
AFSC has contacted impacted clients to discuss the reassessment of their files. We are committed to supporting these producers by offering flexible repayment arrangements, including interest relief where appropriate, to help manage any impact.
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