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  • The government portion is withdrawn first and is taxable.
  • The interest portion is withdrawn next and is also taxable.
  • The remaining portion, which is the producer’s share, is nontaxable when withdrawn.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 September 2, 2016 by FCC AgExpert