Ottawa - Being proactive in understanding and managing a farm's business risks is a key ingredient to achieve profitability. Producers across Canada are actively using AgriInvest to manage small declines in farm income. Participating is easy and convenient, with farmers in control of their investments.
In the coming weeks and months, producers who have applied for AgriInvest in the 2011 program year can expect to see Deposit Notices arrive in their mailboxes. These notices provide important information on the amount farmers would need to deposit to qualify for matching government contributions.
AgriInvest is a self-managed producer-government savings account that allows producers to set money aside to deal with small drops in income or to support investments to mitigate risks or improve market income. Deposits are made by producers based on a percentage of their Allowable Net Sales, and these deposits qualify for matching contributions from federal, provincial, and territorial governments. With matching contributions, even a small investment can help offset minor income shortfalls.
AgriInvest accounts are held at a participating financial institution of the producer's choice. Deposits must be made at the financial institution by the due date shown on the Deposit Notice. Producers have the flexibility to withdraw funds at any time throughout the year.
Participating in AgriInvest is easy. Application forms are available on the Publications and Forms page at www.agr.gc.ca/agriinvest, or by calling Agriculture and Agri-Food Canada toll free at 1-866-367-8506. The penalty-free deadline to file a 2011 application is September 30, 2012. Applications will be accepted until December 31 with a penalty.
AgriInvest is cost shared on a 60:40 basis between the federal and the provincial and territorial governments. The program is delivered by Agriculture and Agri-Food Canada in all provinces except Quebec, where it is delivered by La Financière agricole. Over 136,000 producers across Canada participate in AgriInvest. Account balances currently total $1.3 billion, which includes producer deposits and government contributions.