Entering AgriInvest deposits and withdrawals

AgriInvest is a savings account for producers, providing flexible coverage for small declines in income and supporting investments that help to mitigate risk or improve market income.

AgriInvest deposits

• All producers enrolled in AgriInvest can deposit funds into a government account based on 1.5% of their annual net sales (ANL).
• Enrolment notices will be sent to each producer indicating the maximum matching amount that will be deposited when funds are received.
• Both the government and producer portions are held in the AgriInvest account, which is interest bearing.
• If no asset accounts exist, it's recommended to set up two asset accounts -- one for the producer’s share and another for the government portion and interest. You'll also need to create a detail account under Equity for the AgriInvest income.
• The personal portion will be completed as a withdrawal for the contribution amount and offset to Asset Purchase (A+) to the AgriInvest Personal account.
• The government portion will be completed as a deposit for $0.00, followed by an Asset Purchase (A+) to the AgriInvest Government account and offset to Equity (EQ) AgriInvest income account.
• The interest earned is recorded as a deposit for $0.00, followed by an Asset Purchase (A+) to the AgriInvest Personal account and offset to Equity (EQ) AgriInvest income account.

AgriInvest withdrawals

• Withdrawals can be made at any time up to the account balance.
  • The government portion is withdrawn first and is taxable.
  • The interest portion is withdrawn next and is also taxable.
  • The remaining portion, which is the producer’s share, is nontaxable when withdrawn.
• Processing time for withdrawals is approximately six weeks.
• The government portion plus interest shouldn't be reported on the Statement A form (Farming Income and Expense for tax purposes). It should be reported as investment income on the CRA income tax forms.

Last updated on February 14, 2013 by FCC Management Software