SGI offers a discount on vehicle plate premiums if the registered owner of the vehicle is a farmer, there are some requirements that differ depending on the type of farming being done. In this post we will go over what a Farm Discount gets you, the requirements that have to be met to qualify for the discount, as well as what kinds of vehicles are eligible to be plated as a Class F, and which vehicles are eligible for the Farm Car Discount.
What does a Farm Discount Get You?
When your vehicle qualifies for the Farm Car Discount you receive a flat 20% reduction to the insurance premium on your registration. So if your annual premium was $1000, with the Farm Car Discount of 20% it would become $800. With the discount for vehicles plated under Class F it gets a little more complicated. Vehicles under class F have their insurance premium decided by the vehicles Year, Make, Model, and Trim. This means that a 2020 Chevrolet Silverado 1500 Double Cab 4WD would have a different premium than a 2020 Chevrolet Silverado 1500 Double Cab 4WD DI. Not a very big difference, but a difference nonetheless. Unfortunately, due to this there is not a flat percentage to be given like with the Farm Car Discount as every discounted premium is calculated individually for each make, model, and trim. However, our Motor Licence Issuers have the tools necessary to be able to provide you with an estimate for your particular type of vehicle.
Eligible Vehicles for Class F:
The types of vehicles that are eligible to be plated under Class F are as follows; Heavy Vans (Rated greater than one-ton i.e. GMC Savana), Light Trucks (from ¼ ton to one-ton i.e. Chevrolet Silverado, Toyota Tundra), Heavy Trucks (Greater than one-ton, Power Units i.e. Semis, Mack Trucks), and Trailers (other than camper, boat, cabin, or tent trailers.). These are all the vehicle body styles that are eligible to be plated under Class F.
Eligible Vehicles for Farm Car Discount:
In this section we will go over the vehicle types that do not qualify to be plated under Class F, but can still have the Farm Car Discount applied to them. Vehicles in this list remain plated as regular Light Vehicles, or, Class LV. Most vehicles that don’t qualify for Class F do qualify for the Farm Car Discount, so vehicles like 2-Door Cars, 4-Door Cars, SUVs, and Vans (less than one-ton). While there are different eligible vehicles for Class F and the Farm Car Discount the requirements that must be met to get either the Class F or the Farm Car Discount are the same and are listed below.
Requirements for Class F & Farm Car Discount:
When determining a Farmers eligibility for Class F or Farm Car Discount SGI separates farms into two categories:
- An area of land in Saskatchewan used by cereal crop or canola growers; or
- An area of land in Saskatchewan used by all other farming operations producing primary farm products for sale (“Value Farmers”)
Because of this separation the following section will also be split between Cereal Crop/Canola Growing operations, and Value Farming operations.
To Begin, in order for Cereal Crop/Canola Growing operations to qualify for Class F plates the Grower must operate and control a farm of at least 75 Acres (30 Hectares) that is being used for growing Barley, Canola, Flax, Oats, Rye, or Wheat for sale (not including summer fallow). the land must be owned, rented, or leased by the grower. If it is a new Cereal Crop/Canola Growing operation, then the Grower is not eligible for Class F plates until they have seeded at least 75 Acres of land.
For Value Farmers the requirements are different and pertain to the Gross Revenue made by the farmer in the and is as follows: A Value Farmer must operate and control a farm that produced at least $10,000 in Gross Revenue in the previous year, or $20,000 in the last two years. The farmer is not required to submit proof that he/she sold at least $10,000 at the time of setting up their Class F plates, but SGI may require the farmer provide proof (i.e. Sales Receipts) in the event of an insurance claim. Where a new Value Farming operation has begun, the farmer is not eligible for farm plates until he/she has either planted enough crops, or, purchased enough animals/plants that will eventually yield a minimum of $10,000 Gross Revenue in the upcoming year.
A few side notes when it comes to calculating your Gross Revenue;
- In order to reach the $10,000 minimum, it is permissible to total the sales on one primary farm product or a combination of different primary farm products
- Gross Revenue includes the value added from the growth or maturity of a plant or animal as a result of primary farming activity even if the product is not sold.
- A farmer who grows Barley, Canola, Flax, Oats, Rye, or Wheat in a parcel of land that is less than 75 Acres as part of a mixed Value Farming Operation, is allowed to use up to $5,000 of revenue from the sales of these crops towards the $10,000 minimum
- If a farmer fails to produce the minimum $10,000 in the previous 12-month period (or $20,000 in the previous 24-month period) they are no longer eligible to renew or obtain any new Class F plates. Any Class F plates the farmer currently has will remain in that class until they expire.
- Gross Revenue does not include the following:
- Revenue gained from the rental of farm land or from exhibiting, racing, or renting of any farm product or animal.
- Value added to the primary farming product through processing, refining, or changing the primary farm product from its natural primary state to a secondary state. (i.e. Berries being processed and turned into Jam. Only the value of the berries may be counted for determining Gross Revenue.)
If you would like assistance with setting up your Farm plates or have questions about the process, please reach out to one of our Cornerstone Insurance Motor License Issuers. We would be happy to assist! 1-888-763-8635 or by email at firstname.lastname@example.org