 The
Net Income Stabilization Account (NISA) is being
replaced by the new Canadian Agricultural Income
Stabilization (CAIS) Program. |
How this may affect you
The current Net Income Stabilization Account (NISA) was
developed to help producers stabilize their income.
Participants can deposit annually into their own individual
NISA account and receive a matching contribution from the
federal and provincial governments, up to certain limits.
The new CAIS program will replace the current NISA program
that will be phased out in 2004. The CAIS program provides
income stabilization and disaster assistance to farmers on a
permanent basis. The program was introduced to more
effectively stabilize producers' income (including severe
drops) by providing affordable protection for margin
decline. To secure protection, the producer makes a fully
refundable deposit.
What will happen to your NISA funds?
Funds in your NISA account must be withdrawn in the next
five years, with the last withdrawal no later than March 31,
2009. A minimum of 20% of the total must be withdrawn each
year, with no maximum. Your tax advisor can help you make
the right decision on when and how much should be withdrawn
each year for tax purposes.
Options for withdrawals:
-
Pay down debt
-
Direct funds toward capital expenditures
-
Transfer Funds to an RRSP
-
Transfer Funds to CAIS program
-
Invest in an investment product to meet your needs
A CAIS Program deposit account is just one of the full range
of products and services Prairie Pride Credit Union
provides. Need a loan to make your full deposit? We can
help- call or visit any of our branches for loan options.
For more
information on the following programs
The link to NISA Program is:
http://www.agr.gc.ca/nisa/welcome.html
This link to CAIS Program is:
http://www.agr.gc.ca/caisprogram/main.html
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