Canadian Far Options Program (OPTIONS) Form & Guide

Transcription

1 Canadian Far arm Families Options Program (OPTIONS) Form & Guide

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3 TABLE OF CONTENTS GENERAL INFORMATION... 3 ELIGIBILITY... 4 HOW TO APPLY... 8 HOW TO COMPLETE THE FORM... 9 PAYMENTS PRIVACY AND CONFIDENTIALITY ADJUSTMENTS AND APPEALS Note: The application is located in the middle of this guide. 1

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5 Canadian Farm Families Options Program (Options) GENERAL INFORMATION About the Program The Canadian Farm Families Options Program (Options) is a two-year pilot program which helps farmers and their families improve their income prospects, while enabling them to access Renewal services to gain knowledge, develop new skills, and invest in strategic planning and management activities. Options is intended for both individual farmers and farm families whose total income from all sources has fallen below certain levels. The Options payment will be calculated to bring a farm family income from all sources up to a $25,000 threshold, or up to a $15,000 threshold for an individual farmer. Applicants will receive the difference between the threshold and their total income from all sources, for each year of the program. Payments in the first year of the program will be a maximum of $15,000 for individual farmers, and $25,000 for farm families. For those receiving payments in both years of the program, the second year payment will be reduced by at least 25%. You are eligible for the 2005 tax year if: Your gross farm income is more than $50,000; Your family income (yours and your spouse s) is less than $25,000 ($15,000 for individual farmers); You agree to participate in programming to improve your farm family financial situation; You are farming in If you meet these four qualifications you may be eligible for a payment up to $25,000 to bring your family income to the $25,000 level or $15,000 to bring your individual income to the $15,000 level. You will need your 2005 tax return or 2005 Notice of Assessment to complete the Options application. Options is aimed at providing immediate relief to farmers and their families while assisting them in finding long term solutions to increase their income options. Agriculture and Agri- Food Canada's (AAFC) Renewal Services has two programs designed specifically to assist producers in improving their business skills. Producers must commit to completing one of these activities, or an approved equivalent activity offered through other services, in order to be eligible for a second year payment. A Farm Business Assessment (FBA) will help a farmer set business goals and develop a plan to meet them. Under the FBA, a farmer will work with a consultant for up to five days to develop a farm financial assessment and an action plan. 3

6 Canadian Farm Families Options Program (Options) The Canadian Agricultural Skills Service (CASS) will provide funding and practical assistance to get a farmer and spouse (if applicable) on a learning program that will lead to increased opportunities for profitability and provide more choices about sources of income. Under CASS, a farmer and spouse will work with a consultant to develop individual learning plans and funding is provided to help pay for skills training and associated costs. This guide contains important program information, please read it carefully. If you have any questions about the program, please contact the Options toll-free line at: or visit the program website at ELIGIBILITY There are two types of eligible applicants for Options. When completing your application you must apply in accordance with the farm family or individual farmer definitions below. You may only apply under one category, and only one application may be submitted for each farm family, as defined in the "Farm Family" section of this guide. Options payments will be issued to individuals or farm families. Options payments cannot be made to corporations, co-operatives, communes, or trusts. However, farm families operating corporate farms may be eligible to receive a payment if they hold at least 20 per cent of the corporation's outstanding common shares (voting and nonvoting), and if they meet all other eligibility requirements. Farm Family A farm family includes a farmer and spouse or common-law partner, or where there is no spouse or common-law partner, a farm family includes a farmer and a dependant (as defined below). To qualify for the farm family income threshold of $25,000 you must meet at least one of the following criteria: Be married or have a common-law partner, in which case you must complete the Spouse or Common-Law Partner" section of the Identification Section; Have received the child tax benefit for 2005; Have claimed a dependant for income tax purposes in A "dependant" is defined as a person who at any time in the taxation year is dependent on the individual for support and is: 4 (a) the child or grandchild of the individual or of the individual's spouse or common-law partner;

7 Canadian Farm Families Options Program (Options) (b) the parent, grandparent, brother, sister, uncle, aunt, niece or nephew, if resident in Canada at any time in the year, of the individual or of the individual's spouse or common-law partner; or (c) the spouse or common-law partner of the individual. In the case of divorce, where neither party has claimed a dependant for tax purposes as described above, the following eligibility rules will apply: If your divorce was finalized during your 2005 fiscal year, you are eligible to apply as a farm family. You must supply all the information for both yourself and your spouse on the same application. If your divorce was finalized prior to your 2005 fiscal year, and you have not remarried, you must apply as an Individual Farmer. To be eligible for an Options payment in 2005, you and/or your spouse or common-law partner must: 1) Have reported gross farming income of at least $50,000 to the Canada Revenue Agency (CRA) in To meet this requirement, you must include your gross farming income as reported to CRA in In addition, you can include: the gross farming income reported by your spouse or common-law partner; your share, and your spouse or common-law partner's share of a corporation's gross farming income, where you and/or your spouse or common-law partner own a combined total of at least 20% of the common voting and non-voting shares; 2) Have reported total income of less than $25,000 to CRA in 2005 (total income as reported on your individual tax return(s); income earned by corporations will not be included in the calculation of your total income); 3) Be actively farming 1 and report farming income to CRA in 2005 and 2006 (you and/or your spouse/common-law partner). If your spouse did not report income to CRA you must have claimed them as a dependant for tax purposes (line 303). If your spouse did not report income to CRA and was not claimed by you as a dependant, neither you nor your spouse are eligible for Options, as the total amount of your family income cannot be verified. 1 Actively farming is defined as carrying out the physical work needed to produce and market agricultural commodities, including but not limited to machinery operation, maintenance and repairs; or participating in a wide variety of day-to-day management decisions required for the operation of a farming business, including but not limited to planting and harvesting, selecting crop rotations, spray schedules, rations for livestock, actions to deal with plant and livestock disease problems, maintenance schedules for machines, equipment and buildings, or the management of cash flow, taxation and financing. 5

8 Canadian Farm Families Options Program (Options) Individual Farmer To qualify as an Individual Farmer you must be a farmer who is not married, is not in a common-law situation, and has no dependants. To be eligible for an Options payment in 2005 you must: 1) Have reported gross farming income of at least $50,000 to the Canada Revenue Agency (CRA) in To meet this requirement, you must include the gross farming income you reported as an individual to CRA in In addition, you can include your share of a farm corporation, as long as you own at least 20% of the common voting and non-voting shares in the corporation(s); 2) Have reported total income of less than $15,000 to CRA in 2005 (total income as reported on your individual tax return; income earned by corporations will not be included in the calculation of your total income); 3) Be actively farming 1 and report farming income to CRA in 2005 and Additional Eligibility Requirements If you receive an Options payment you must complete, within two years from the postmark date on your application, an activity that will help you improve your long term farm and/or off-farm income prospects. These activities can include one of the two following Renewal programs: a Farm Business Assessment (FBA) or a business plan offered by the Canadian Farm Business Advisory Services (CFBAS) or approved equivalent activity offered through other services; an Individual Learning Plan (ILP) and skills training to improve on-farm and/or off-farm family income through the Canadian Agricultural Skills Service (CASS), or approved equivalent activity offered through other services. The FBA and CASS programs offered by AAFC Renewal Services are provided free of charge to Options applicants. If you choose to undertake an equivalent activity, it will be your responsibility to contact AAFC to determine if the activity is an approved equivalent activity that meets the eligibility requirements of the program and to pay for any costs incurred in participating in that activity. Generally, equivalent activities offered through other services will have to result in improved business skills that will help to improve farm and/or off-farm income prospects. 6

9 Canadian Farm Families Options Program (Options) An equivalent to a Farm Business Assessment is a written financial assessment of a farm operation prepared by either a certified accountant or consultant and would include: a written review of past farm records; a written review of the farm s current financial situation; and a discussion on the goals/objectives of the farm family including the development of an action plan, which would assist the producer in determining their current options in order to meet their goals for profitability; in Quebec, an equivalent Farm Business Assessment would include all the above mentioned components and would be prepared by a Financial Advisor from the Quebec list of accredited experts (which includes most Farm Management Club consultants). For example, a business plan with the above elements prepared within one year of application to the Options program is considered an equivalent. If you have completed a FBA or CASS (or an approved equivalent) within one year prior to the postmark date on your Options application, you will be considered to have completed this requirement. For an activity to be considered equivalent to CASS, you must have undertaken, within one year prior to submitting an application, a formal training program or participated in a formal learning opportunity that is part of a certification program delivered by an accredited educational institution, an industry association, or a government program. If you would like more information on what qualifies as an approved equivalent activity, please contact AAFC s Renewal office at By signing and submitting this application form, you agree to complete this requirement within two years from the postmark date on your Options application. If you receive an Options payment in year one of the program, and wish to apply for a payment in year two, you must: be in the process of undertaking, or have completed, a Farm Business Assessment (FBA) or its approved equivalent; or be participating in the Canadian Agricultural Skills Service (CASS) or an approved equivalent. Failure to do so will make you ineligible for any benefits under the second year of the program. 7

10 Canadian Farm Families Options Program (Options) You must have filed your 2005 farm income tax to CRA for all operations from which you are reporting income for the purposes of Options payment calculations, prior to submitting the Options application form. Options payments will not be issued to applicants who have not filed their 2005 farm income tax. Corporations, co-operatives and communes are not eligible for payments under Options. However, individual farmers and farm families who own at least 20% of a farm corporation are eligible to apply for Options. Where an applicant in year one of the program is including income from a spouse or common-law partner, or from shares in a farming corporation, the financial information for all operations must reflect the fiscal year that ends in Status Indians farming on a Reserve in Canada, who do not file a tax return, are eligible to apply providing they submit information that would otherwise have been reported for tax purposes. Applications cannot be submitted for deceased individuals, trusts, or estates unless a member of the family will report farming income for this individual operation in the 2006 tax year. You and your spouse or common-law partner (if applicable) must sign and date the application form, and it must be postmarked no later than the deadline of October 31, 2006 to receive any potential benefits from Options. You must provide all information required in the processing of your application by the applicable deadlines, or you may be deemed ineligible for benefits. HOW TO APPLY Complete the Options application form (found in the middle of this guide) and submit it to: Canadian Farm Families Options Program P.O. Box 6100 Winnipeg, Manitoba R3C 4N3 To be accepted, your application must be postmarked on or before October 31, Applications postmarked after this date will not be accepted. 8 You are responsible for submitting your application by the deadline and ensuring it is received by the Administration. It is recommended that you use registered mail to ensure your application is received.

11 Canadian Farm Families Options Program 2005 Application Page 1 IDENTIFICATION First Name Applicant Last Name First Name Spouse or Common-Law Partner Last Name Mailing Address Mailing Address (if different from Applicant) Town/City Prov./Terr. Postal Code Town/City Prov./Terr. Postal Code Telephone Days ( ) Telephone Evenings ( ) Telephone Days ( ) Telephone Evenings ( ) S.I.N. S.I.N. Did you report dependants on your 2005 income tax return as defined by Canada Revenue Agency (CRA)? Yes No Language of preference: English French Step 1 - Total Income (round all amounts to the nearest dollar) Applicant - Enter Line 150 (Total Income) from your 2005 T1 General submitted to CRA Were you a Status Indian farming on a Reserve in 2005? Yes No Spouse or common-law partner - Enter Line 150 (Total Income) from the 2005 T1 General submitted to CRA B + Total Income (Add Box A and Box B) If Negative, enter 0 C = If BOX C is less than $15,000 for an individual farmer or $25,000 for a farm family, proceed to STEP 2. If BOX C is greater than or equal to $15,000 for an individual farmer or $25,000 for a farm family, you do not qualify for an Options Payment. Step 2 - Gross Individual or Partnership Farming Income (round all amounts to the nearest dollar) Farming Operation 1 (Applicant) D1 D2 - Subtract D2 from D1 D3 = Enter Gross Farming Income from your T1273, T1163, T1274, T1164, or T2042 Enter Income from horse racing, woodlots and aquaculture included in above amount Farming Operation 1 (Spouse or Common-Law Partner, if applicable) Enter Gross Farming Income from your T1273, T1163, T1274, T1164, or T2042 E1 Enter Income from horse racing, woodlots and aquaculture included in above amount E2 - Subtract E2 from E1 E3 = x % E4 = E5+ Partnership % (100% for sole proprietors) If you have more than one farming operation, please use the additional worksheet provided. Transfer amount from Box F of additional worksheet if applicable, OR enter 0 F + Total Gross Individual or Partnership Farming Income Add Boxes D5 + E5 + F G = If BOX G is greater than or equal to $50,000 proceed to Step 4; If Box G is less than $50,000 proceed to Step 3. A x % D4 = D5 Partnership % (100% for sole proprietors) Step 3 - Gross Corporate Farming Income for Shareholders (round all amounts to the nearest dollar) Corporate Farm 1 Name Business Number % Common Shares Owned (you and your spouse or common-law partner) % Enter Gross Farming Income from your T2 H1 Enter Income from horse racing, woodlots and aquaculture included in above amount H2 - Subtract H2 from H1 H3 = If you have more than one farm corporation, please use the additional worksheet provided. Transfer amount from Box I of additional worksheet if applicable, OR enter 0 x % H4 = H5+ % common shares owned I + Total Gross Corporate Farming Income Add Boxes H5 + I J = Total Gross Far arming Income Add Boxes G +J K = If BOX K is less than $50,000 you do not qualify for an Options payment; if it is greater than or equal to $50,000 proceed to Step 4.

12 Canadian Farm Families Options Program 2005 Application Page 2 Step 4 - Quick Benefit Calculation Threshold Amounts L1 Individual $ 15,000 Or M1 Farm Family $ 25,000 Total Income (Transfer Box C) (Transfer Box C) L2- M2- Potential Benefit (Subtract L2 from L1) L3= (Subtract M2 from M1) M3= Note: If Box L3 or M3 are zero or negative, you do not qualify for an Options payment. Payments totaling less than $100 will not be issued. Step 5 - Benefit Split for Applicant and Spouse or Common-Law Partner If Box M3 is great eater er than or equal to $100, and you wish to have your payment split betw tween you and your spouse/common-law partner tner, complete this step. If you do not complete this section, the payment will be split 50/50 between you and your spouse/common-law partner tner. Enter Percentage of Box M3 Applicant is to receive N1 % (Box N1 + Box N2 must total 100%) Enter Percentage of Box M3 Spouse is to receive N2. Step 6- Renewal Program Participation Declaration I understand that if I receive an Options payment, I must complete one of the following within two years from the postmark date on my application: a) Farm Business Assessment (FBA) or a business plan offered by the Canadian Farm Business Advisory Services (CFBAS) or approved equivalent* offered through other services; OR b) Individual Learning Plan (ILP) and skills training to improve my farm and/or off-farm family income through the Canadian Agricultural Skills Service (CASS) or approved equivalent* offered through other services. I understand that if I am not participating in or have not completed one of these activities I will not be eligible for a payment in year two of this program. % If you have already completed a Renewal activity or its equivalent, please indicate which activity you have completed. I have already completed an FBA or business plan through the CFBAS within the past 12 months. Yes No If you answered YES, please provide your FBA file number or the name under which the application was submitted: I have already completed an Individual Learning Plan (ILP) through CASS within the past 12 months. I have already completed an equivalent* activity within the past 12 months. If not already completed, I agree to complete an FBA or an ILP and skills training under CASS or an equivalent activity. *To determine if your activity is considered equivalent, please refer to page 7 of the Options Guide Step 7 - Confidential Information and Applicant Declaration By completing and submitting this application form, I / We: 1) Certify that the information provided is complete and correct; 2) Consent to providing tax data included on this form and consent to the Department of Agriculture and Agri-Food Canada (AAFC) and the Canada Revenue Agency (CRA) exchanging information in order to verify the information provided on this form as well as any additional information required to verify my eligibility for the program; 3) Authorize AAFC to use this information for the purposes of audit, analysis, evaluation of this or any other federal farm support program that requires the same information as requested above, including disclosing such information to provincial governments that also require the same information for provincial support programs. I understand that any personal information collected, used and/or disclosed, will be protected and retained following federal, provincial and territorial privacy and access to information legislation and will be stored in a Personal Information Bank maintained by AAFC, and that any private sector consultant hired under this program is subject to the same limitations as Canada; 4) Understand that failure to comply with any program application requirements may delay the processing of this application, or make me/us ineligible for receiving assistance under this program; 5) Confirm that I am not a current or former federal public office holder or public servant. (if applicable) I confirm that as a current or former federal public office holder or public servant that I am in compliance with the applicable conflict of interest and post employment code; 6) Understand that it is a requirement for program participation that this form is signed by all persons whose tax information is being submitted on the form. 7) Authorize AAFC to use my Social Insurance Number to verify my participation in the CASS program if I complete an ILP. Yes Yes Yes No No Signature of Applicant Date Signature of Spouse or Common-law Partner (if applicable) Date

13 Canadian Farm Families Options Program Gross Farming Income Worksheet for Additional Operations Note: Applicants to the Options program can use this form to include gross farming income from additional farming operations (individual and/ or corporate), in order to meet the minimum $50,000 gross farming income requirement for Options. Once you have completed the worksheet, attach it to your Options application form and submit it to the Options program administration. For more information on how to apply, and for instructions on how to complete this form, please refer to the Options Guide. Please note that you and your spouse or common-law partner must own a combined total of at least 20% of common voting and non-voting shares in order to include corporate income for the purposes of the Gross Farming Income calculations. Applicant s First Name Last Name S.I.N. Gross Individual or Partnership Farming Income (round all amounts to the nearest dollar) Farming Operation 2 (Applicant) Enter Gross Farming Income from your T1273, T1163, T1274, T1164, or T2042 Enter Income from horse racing, woodlots and aquaculture included in above Subtract D7 from D6 Farming Operation 3 (Applicant) Enter Gross Farming Income from your T1273, T1163, T1274, T1164, or T2042 Enter Income from horse racing, woodlots and aquaculture included in above Subtract D12 from D11 D6 D7 - D8 = D11 D12 - D13 = x % D9 = D10 Partnership % (100% for sole proprietors) x % D14 = D15+ Partnership % (100% for sole proprietors) Farming Operation 2 (Spouse or Common-Law Partner, if applicable) Enter Gross Farming Income from your T1273, T1163, T1274, T1164, or T2042 E6 Enter Income from horse racing, woodlots and aquaculture included in above E7 - Subtract E7 from E6 E8 = Farming Operation 3 (Spouse or Common-Law Partner, if applicable) Enter Gross Farming Income from your T1273, T1163, T1274, T1164, or T2042 E11 Enter Income from horse racing, woodlots and aquaculture included in above E12 - Subtract E12 from E11 E13 = x % E9 = E10+ Partnership % (100% for sole proprietors) x % E14 = E15+ Partnership % (100% for sole proprietors) Total Gross Individual or Partnership Farming Income Add Boxes D10, D15, E10 and E15 F = Transfer amount from Box F (above) to Box F on the Options application form. Gross Corporate Farming Income for Shareholders (round all amounts to the nearest dollar) Corporate Farm 2 Name Business Number % Common Shares Owned (you and your spouse or common-law partner) % Enter Gross Farming Income from your T2 Enter Income from horse racing, woodlots and aquaculture included in above Subtract H7 from H6 H6 H7 - H8 = x % H9 = H10 % common shares owned Corporate Farm 3 Name Business Number % Common Shares Owned (you and your spouse or common-law partner) % Enter Gross Farming Income from your T2 Enter Income from horse racing, woodlots and aquaculture included in above Subtract H12 from H11 H11 H12 - H13 = x % H14 = H15+ % common shares owned Total Gross Corporate Farming Income Add Boxes H10 and H15 I = Transfer amount from Box I (above) to Box I on the Options application form.

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15 Canadian Farm Families Options Program (Options) HOW TO COMPLETE THE FORM Identification Complete the Applicant Name and Address area; also provide a day and evening telephone number in case we need to contact you. Cheques and information will be mailed directly to the name(s) and address(es) listed in the Identification section. You must provide your Social Insurance Number (SIN). If you and your spouse are applying as a farm family you must also provide your spouse's SIN. The SIN is collected under the authority of the Income Tax Act for the purpose of reporting income. Indicate whether you received child tax benefits in 2005, or claimed a credit on your 2005 income tax for a dependant. If you claimed a credit on any one or all of the following lines on your 2005 income tax return as filed with the CRA you are considered to have dependants: 303 (spouse or common-law partner amount) 305 (amount for eligible dependant) 306 (infirm dependants) 315 (caregiver amount) 318 (disability amount transferred from a dependant) 324 (tuition and education amounts) 330 (medical expenses for self, spouse or common-law partner and dependent children born in 1988 or later) 331 (allowable amount of medical expenses for other dependants) Indicate your language of preference. All future correspondence with Options will be provided in this language. Indicate whether you farmed as a Status Indian on a Reserve in

16 Canadian Farm Families Options Program (Options) Step 1 - Total Income Enter the amount from Line 150 (Total Income) from your 2005 T1 General as submitted to CRA in Box A. Enter the amount from Line 150 (Total Income) from your spouse or common-law partner's 2005 T1 General as submitted to CRA (if applicable) in Box B. Add the amount in Box A to the amount in Box B and enter this amount in Box C. If Box C is greater than or equal to $15,000 for Individual Farmers, or $25,000 for Farm Families, you are not eligible to apply for Options. Step 2 - Gross Individual or Partnership Farming Income Enter the Gross Farming Income from your T1273, T1163, T1274, T1164 or your T2042 on Line D1. Enter any income from horse racing, woodlots, and aquaculture on Line D2. Income from these activities is excluded from the Gross Farming Income calculations for Options. Subtract the amount on Line D2 from the amount on Line D1. Enter this amount on Line D3. Multiply Line D3 by Line D4 (your partnership percentage, if applicable) and enter this amount in Box D5. Repeat this calculation for your spouse's operation, if applicable. Once you have reached a total of $50,000 in Gross Farming Income, you do not need to provide information for any additional operations you may have. Proceed to Step 4. If you do not reach a total of $50,000 in Gross Farming Income from the first operation(s) for you and/or your spouse, you can add Gross Farming Income from additional individual operations (e.g., partnerships). To add this income, complete the Gross Farming Income Worksheet for Additional Operations, found in the middle of this Guide. Enter the total Gross Farming Income from these additional individual operations in Box F. Add Boxes D5, E5, and F and enter this amount in Box G. If you and your spouse (if applicable) do not reach a total of $50,000 in Gross Farming Income from your individual operation(s), you can add Gross Farming Income from your closely held corporate operation(s) where you, and/or your spouse (if applicable), own at least 20% of the common voting and non-voting shares. To add this income, proceed to Step 3 on the Options application. Step 3 - Gross Corporate Farming Income for Shareholders Provide the name of your farm corporation and the business number. Indicate the percentage of common voting and non-voting shares owned by you and/or your spouse. You must own a combined total of at least 20% of the common voting and non-voting shares in order to include this income for the purposes of the Gross Farming Income calculation. 10

17 Canadian Farm Families Options Program (Options) Enter the Gross Farming Income from your T2 tax return on Line H1. Enter any income from horse racing, woodlots, and aquaculture on Line H2. Income from these activities is excluded from Gross Farming Income calculations for Options. Subtract the amount on Line H2 from the amount on Line H1. Enter this amount on Line H3. Multiply Line H3 by Line H4 (percentage of common shares owned) and enter the amount in Box H5. If you have not reached a total of $50,000 in Gross Farming Income after including income from the first family farm corporation, you can add gross farming income from additional closely-held family farm corporations (where you, and your spouse if applicable, own a combined total of at least 20% of the common voting and non-voting shares). To add this income, complete the Gross Farming Income Worksheet for Additional Operations, found in the middle of this Guide. Enter the total gross farming income from these additional family corporations in Box I. Add Boxes H5 and I, and enter this amount in Box J. Now, add Box G and Box J and enter this amount in Box K. If Box K is less than $50,000 you are not eligible to apply for Options. If it is greater than or equal to $50,000 proceed to Step 4. Step 4 - Quick Benefit Calculation Deduct your Total Income (Box C) from the Individual or Farm Family threshold limits to determine your maximum potential benefit under Options. Step 5 - Benefit Split for Applicant and Spouse/Common-Law Partner If you and your spouse or common-law partner are applying for Options, you can determine how you would like to divide the benefits from the program between the two of you. Enter the percentage of Box M3 that the Applicant is to receive in Box N1. Enter the percentage of Box M3 that the Applicant s spouse or common-law partner is to receive in Box N2. Box N1 plus Box N2 must equal 100%. If they total less than 100%, the spousal amount will be adjusted to ensure the benefit split totals 100%; if they total more than 100%, the excess amount will be deducted from the spouse's share. If no amounts are entered, 50% of the payment will be issued to the applicant, and 50% will be issued to the spouse or common-law partner. Cheques will not be re-issued to accommodate a change to the benefit split. 11

18 Canadian Farm Families Options Program (Options) Step 6 - Renewal Program Participation Declaration See the section titled Additional Eligibility Requirements for more information about this important program requirement. Indicate whether you have already completed within the past twelve months: a Farm Business Assessment (FBA) or business plan under the Canadian Farm Business Advisory Services (CFBAS), an Individual Learning Plan (ILP) under the Canadian Agricultural Skills Service (CASS), or an equivalent activity. Use the check boxes provided on the form. To determine if your equivalent activity meets the eligibility requirements of an approved equivalent activity, please call Step 7 - Confidential Information and Applicant Declaration Please read this section carefully. You must agree to the terms listed in this section by signing and dating the application. If you are applying as a farm family with a spouse or common-law partner, your spouse or common-law partner must also sign and date the application. Any applications submitted without the necessary signatures and dates will be deemed incomplete and will be returned to the applicant for completion. Completed application forms must be returned prior to October 31, 2006 to be considered. PAYMENTS Payments will be calculated based on the information available at the time your application is processed, as provided by you, your spouse or common-law partner, and by CRA. Options program payments in 2005 will be calculated to bring a farm family income from all sources up to a $25,000 threshold, or up to a $15,000 threshold for an individual farmer. Applicants will receive the difference between the threshold and their total income from all sources. Payments in the first year of the program will be a maximum of $15,000 for individual farmers, and $25,000 for farm families. Applications for 2006 Options payments will be available in the Spring of To be eligible for a second year Options payment farmers must: meet all of the eligibility and financial requirements; be participating in or have completed the Renewal program participation requirements including; a Farm Business Assessment (FBA) or a business plan offered by the Canadian Farm Business Advisory Services (CFBAS) or an approved equivalent or the Canadian Agricultural Skills Service (CASS) or an approved equivalent; and 12 apply to receive the payment.

19 Canadian Farm Families Options Program (Options) Payments in the second year of the program may be pro-rated to ensure that the total value of payments under the program do not exceed the total amount of funding allocated for the program. For farmers who qualify for Options payments in both the 2005 and 2006 program years: the 2005 Options payment will not be included in the 2006 income amount used to calculate your 2006 Options payment; payments in the second year of the program will be reduced by at least 25%; the full amount of the payment in the second year will be withheld if you are not yet participating in, or have not yet completed, the Renewal program participation requirement. Payments issued under Options will be considered farm income for tax purposes. Options payments are non-allowable farm income for the Canadian Agricultural Income Stabilization (CAIS) program and will therefore not reduce any benefits you may receive from CAIS. Payments from Options will not be used to collect any outstanding Agriculture and Agri-Food Canada (AAFC) or other Crown debts you may owe. Options will not issue top-up payments, as the full amount of the payment for 2005 will be issued to you in a single cheque. Payments of less than $100 per individual farmer or farm family will not be issued. It is the goal of the Options Program Administration to issue payments within 30 days from receiving a complete application. Every effort will be made to issue payments within this service standard. PRIVACY AND CONFIDENTIALITY Social Insurance Numbers (SINs) for you and your spouse or common-law partner (if applicable) must be provided in order to be eligible to receive an Options payment. SINs, and all other personal information, are kept confidential under the Privacy Act, and will be used to verify information submitted on your application form against information collected under the Income Tax Act, or as authorized by law. To ensure the information remains confidential, if you telephone for information about your application, you will be asked: your name and SIN; specific questions about your Options application in order to identify you. 13

20 Canadian Farm Families Options Program (Options) ADJUSTMENTS AND APPEALS Adjustments You may submit adjustments to the information used to calculate your Options benefit within 60 days from the date on your Options cheque (or from the date of written notification if there is no payment), or by the application deadline of October 31, 2006, whichever is later. An adjustment will not be accepted unless: it has also been provided to CRA for the purpose of income tax, or it is accompanied by documentation which verifies the adjustment. Adjustments will only be accepted with respect to factual errors in the original application. No adjustments will be permitted with respect to any options which you may exercise under the Income Tax Act. Appeals You can submit an appeal if you feel the Options program policies have been incorrectly applied in the processing of your application. You must: submit your request for appeal in writing, identifying the reason(s) for the appeal; submit your request within 60 days from the date on your Options cheque (or from the date of written notification if there is no payment), or by the application deadline of October 31, 2006, whichever is later. Submit your request to: Canadian Farm Families Options Program Appeals P.O. Box 2759 Winnipeg, Manitoba R3C 4B4 14

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24 Her Majesty the Queen in Right of Canada, 2006 Cat. no. A118-7/2006E ISBN