REGINA – Farm Credit Corporation wants your NISA money.
And the federal crown corporation is going to get it if you don’t put it somewhere else first.
As of May 31, all funds deposited into a producer’s Net Income Stabilization Account must be moved from NISA to a financial institution.
Producers who don’t move their accounts will find them automatically transferred, said Wes Gordon, assistant vice-president of product development at FCC. “It will be moved to FCC as a deposit,” he said.
The government contributions to the program will remain with NISA.
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A NISA spokesperson said letters went out Dec. 3, 1996 to all 128,511 participants, telling them of federal agriculture minister Ralph Goodale’s decision to transfer the accounts.
Sandrina Esposito Kells said about half of participants already have their accounts in a chartered bank or credit union.
Gordon is urging participants to choose FCC now, as 800 farmers have already done.
“We feel we can offer farmers the opportunity to leave (their funds) with an institution that invests in agriculture and only agriculture,” he said. “If they move it to us ahead of time they generally would receive a slightly higher interest rate than what they are currently getting with NISA.”
Bonus interest of three percent is paid on producers’ contributions only.
Gordon also said deposits are guaranteed for their full value.
But Gil Ennis, a farmer and chartered financial consultant at M.R.E. Financial Services in Regina, said producers need to be aware those good things come at a cost.
“When I see ‘bonus’ I have to ask where does it come from. . .out of the general revenue fund?” Ennis said. “I have concerns about increasing and escalating taxation to look after these programs where things were promised.”
He would prefer participants be allowed to control their money themselves and that they be able to transfer their accounts someplace other than banks and credit unions.
“I would like to see that broadened to allow investment into other things like mutual funds and stocks,” Ennis said.
Farmers could still invest in agriculture by putting their money into a publicly traded company such as Saskatchewan Wheat Pool, he said.
“Don’t put all your eggs in one basket,” Ennis cautioned. “You could run the risk of being in the wrong place at the wrong time.”
