A program designed to allow farmers to quickly withdraw money during tough times from the Net Income Stabilization Account failed to attract much interest in 1998.
Only 1,600 Canadian farmers took advantage of the interim withdrawal program, receiving $32.3 million from their accounts.
When the farm income crisis emerged last fall, the NISA administration had been prepared for up to half of the 142,000 farmers with accounts to ask for an advance.
On Dec. 21, only 756 farmers had requested withdrawals worth $17.7 million.
Brent DePape, spokesperson for NISA, said many applications came during the week before the Dec. 31 deadline. Farmers had the money in their hands within two weeks, he noted.
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For the 1999 tax year, farmers can make interim withdrawals as soon as they receive their deposit withdrawal options notice form.
NISA will start processing these forms in mid-February. The forms tell farmers how much they are eligible to deposit or withdraw from their accounts for the 1998 tax year.
This will mean incorporated farms that have a year-end other than Dec. 31 will be able to request interim withdrawals.
That didn’t happen in the first year of the program, said DePape.
Less than 10 percent of farmers with NISA accounts are incorporated, he said.
