AgriStability Wine Grapes Information

British Columbia is proud to offer low-cost support to the wine grape sector through the AgriStability program. AgriStability helps agricultural producers manage large declines in their net farming income due to market conditions, production loss or increased cost of production.

Program eligibility for Wineries:

• Farm operations that produce wine grapes in BC and process them into wine for sale are eligible to enroll in AgriStability
• Wineries that only purchase grapes and do not grow grapes are not eligible for AgriStability
• To receive an AgriStability benefit participants must pay the annual enrolment fee and file all program forms by the filing deadline

Annual reporting requirements for Wineries:

1.  Complete the AgriStability/AgriInvest Harmonized form 1373-E Statement A for Corporations.

Harmonized form tips:

• annual wine sales (retail and wholesale) should be reported using income code 088 on page 2 of the form
• only report wine income from product made with grapes grown on your farmland
• farm and winemaking expenses should be reported on page 3 of the harmonized form
• expenses related to the production and harvesting of wine grapes are eligible; also expenses for winemaking including crushing, fermentation, bottling, and storage costs
• arm’s length wages associated with winemaking activities including the winemaker’s wages are eligible
• arm’s length wages for tasting room staff, bistro staff etc are not eligible
• purchases of off-farm wine grapes are non-allowable, all costs should be reported as purchases of commodities resold (code 9827)
• the wine sales resulting from these purchases should be reported as resales of commodities purchased (code 9612)
• in addition to completing pages 1 to 4, you must fill in page 5 of the 1373-E Statement A to participate in AgriStability. Fill in only the areas that apply to your farming operation.

2.  Complete the annual wine grape operations supplemental form

Form tips:

• the total ending inventory from all years on hand must be reported in bulk liters, this includes a total of bulk and bottled wine on hand at the end of your fiscal year
• bottled inventory must be converted to bulk liters for reporting purposes
• use code 5067 Wine (bulk/pre-bottled) for reporting purposes
• wine inventory will be valued at wholesale values when calculating AgriStability benefits
• do not report ending inventory for wine produced from off farm grapes

3.  Report all income from your annual wine sales as farm income to CRA

Tips to complete forms:

• farming income from wine sales must be reported as farming revenue on the CRA Schedule 125
• farming expenses related to the production of wine grapes and wine must be reported as farming expenses on the CRA Schedule 125

Program eligibility for Wine Grape Growers

• Farm operations that produce wine grapes in BC are eligible to enroll in AgriStability
• Producers must file taxes each year reporting farming income (loss) to the Canada Revenue Agency (CRA) by the program year filing deadline
• Your operation must have filed farm tax for all reference years in which you farmed. If you are a beginning farmer, we will use industry numbers for the missing years.
• To receive a benefit from AgriStability, participants must pay the annual enrolment fee and file all program forms by the applicable deadlines

Annual reporting requirements:

1.  Complete the T1273 Statement A AgriStability/AgriInvest Harmonized form for individuals

• report income from wine grape sales as farming revenue in the income section on page 3 using code 083 grapes
• all expenses related to the production and harvesting of wine grapes are allowable and are reported in the expense section on page 4

2.  In addition to completing pages 1 to 5, you must fill in page 7 of the T1273 Statement A to participate in AgriStability. Fill in only the areas that apply to your farming operation.

• use code 4988 grapes to report total acres of grapes in production and the pounds of wine grapes harvested for the year in the crop inventory valuation and productive capacity section of the form
• fill in the purchased inputs and accounts payable sections of the form using the expense code list
• fill in the purchased inputs, deferred income and receivables, and accounts payable sections of the form using the fruit commodity list: Includes the codes and descriptions of commodities
• program payment lists A and B: Includes the codes and descriptions of program payments to fill in deferred income and receivables section of the form

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If you have any questions, AgriStability Customer Support is available by calling 1-877-343-2767 or by email at AgriStability@gov.bc.ca.
Support available in English and Punjabi.