Agriculture and Forestry Minister Mitch Murphy announced today that the enhanced Net Income Stabilization Account program (NISA) will be extended through an agreement with the federal government to cover eligible producers for the 1999 tax year.
"The NISA program is the cornerstone of our overall safety net package, and the agriculture industry has asked that the enhanced program be continued," said Mr. Murphy. "The program is working as it was intended, and it provides producers with an effective and affordable means to deal with fluctuations in farm incomes."
Mr. Murphy told the Legislature there are 862 active NISA accounts in the province, with balances of more than $41 million. Total withdrawals by producers for the 1998 tax year were $8.8 million. The provincial contribution last year was $2.7 million.
The minister also announced that the federal and provincial governments are currently negotiating a new package of agriculture safety net programs. "I am confident that the NISA program will continue to be an integral part of that package," he said.
Under the NISA program, producers can set aside funds in good years to draw upon in bad. Producer contributions are matched by the federal and provincial governments on a 2:1 ratio. The enhanced NISA program provides for a doubling of contributions to enable producers to build up their accounts more quickly.