Canadian farmers will soon start receiving government contributions under AgriInvest without any requirement to make matching producer deposits for the first year. Federal, provincial and territorial governments are waiving the deposit requirement as a transition measure for 2007 AgriInvest.
Beginning with the 2008 program year, farmers who make deposits to their AgriInvest accounts will receive matching government contributions.
AgriInvest is a business risk management program under Growing Forward, the policy framework for Canada’s agriculture. With AgriInvest accounts, producers who make a deposit based on a percentage of their allowable net sales will receive a matching government contribution. Matching government contributions are cost-shared on a 60/40 basis by federal and provincial or territorial governments. Producers have the flexibility to use the money to cover small margin declines or for investments to mitigate risk.
In Quebec, where AgriInvest is delivered provincially, accounts will not be moving to financial institutions and will continue to be held by La Financière agricole du Québec (FADQ). However, Quebec producers will also benefit from the transition measure announced today and do not have to make a 2007 AgriInvest deposit to take advantage of the program.
For more information, producers in all provinces and territories except Quebec can call toll free 1-866-367-8506 or visit the AAFC web site at www.agr.gc.ca.
