One component of the federal farm safety net program that is currently under development is AgriInvest.Â
The following are the key features of AgriInvest – all of which still have to be ratified:
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Government will match producer contributions to a maximum each year
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The basis for contribution will be Allowable Net Sales (ANS)
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ANS is similar in concept to eligible net sales under NISA, but with some different components
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Contribution rates will be 1.5% of ANS
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Contribution caps will be $1.5 million per participant
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Government funds are withdrawn first and taxed as investment income upon withdrawal
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No deemed deposits
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No interest bonus
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No account triggers for 2007
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Only linkage to AgriStability is that the T1163 or Statement A will be used as a data source.
You may already have received a January mailing regarding a Federal "KickStart" component. This is to be comprised of a one time $600 million payment into AgriInvest accounts. The notices give you the option to collect your KickStart payment directly, to have the payment deposited to your AgriInvest account, or to decline the payment. In Quebec, the KickStart payment will be distributed by the provincial government.
For details on your eligibility for AgriStability, as well as the Federal "KickStart" payment, contact your local Collins Barrow office.