WINNIPEG – The federal government likely will give farmers a choice this summer about how they receive their share of Ottawa’s $600 million in transition subsidies.
Federal agriculture minister Lyle Vanclief said the money will go to farmers directly.
They will be asked whether they want it deposited in the Net Income Stabilization account or sent to them in a cheque.
Vanclief said the issue was briefly discussed during the federal and provincial agriculture minister’s meeting July 9-10. In the past, some provinces and farm groups have suggested the money be sent to provinces where provincial governments and farm groups would figure out the best way to spread it around.
Read Also
Agriculture ministers commit to enhancing competitiveness
Canadian ag ministers said they want to ensure farmers, ranchers and processors are competitive through ongoing regulatory reform and business risk management programs that work.
The federal minister has rejected that. Farmers will receive a direct benefit from Ottawa.
“We have made it very, very, very clear that the cheques will go to the farmers,” he told a news conference.
If a farmer opts to have the money deposited in a NISA, it could be drawn down over the next five years before all the old accounts are closed and the new NISA becomes the norm.
If they opt to receive a cheque, “they can do as they wish with that.”
Deposits into NISA would be taxable when withdrawn. Revenue received as a direct cheque would be considered taxable income immediately.
