Return on AgInvest?

[boarderbloke]

What kinda returns are most of you getting on your AgInvest deposit, now that you've moved it to your local institution? Mine sucks. 1.25% on daily balance!

[countryguy]

I am getting whatever the highest rate of interest on whatever debt I currently have. My agri invest all goes to repay debt. I figure that is the best rate of return I could possibly get on that money.

[grassfarmer]

Why would you leave any funds in there once the Govt has put in their contribution?

[farmaholic]

This should prove to be an interesting thread-there will be as many or more opinions/options as people posting. I like Countryguys theory-pay down debt. Why leave it sit there at a rate of return may times less than your loan rates. Otherwise you could take it out and invest it somewhere else with a better return than a deposit account is going to pay. Unfortunately, anywhere else will come with a degree of risk. The deposit account will be the safest with the most liquidity and the poorest return. Buy land........

[boarderbloke]

Sounds like I have to leave it in there till the gov't sends it's matching amount(3 or 4 months? does that sound like the amount of time the gov't will take to get their matching money out??), then I can move it, hence the reason for the thread, what are others doing?

[vvalk]

This is by far the best program we have along side crop insurance. ( On a side note, we should really get rid of all the other programs and use that money to beef up these two.) It is suppose to be a savings account to cover losses on your farm so that the govt in future years, does not have to bail out farmers for small losses. If the Gov't get wind that farmers are using this money ( they gave farmers for future small margin lossses ) for buyng land or what not, we may lose this program. I for one do not want to those the only program my farm has ever seen money from the gov't. I'm serious. Grow forward 2 in in the works and we do not want to loose agri invest.

[T.N.T.]

Just another subsidy,and more paper work.I don't even bother doing it.

[grassfarmer]

Took less that two months to get the Government contribution in my account, cashed it all out a couple of days later.

[gustgd]

@vvalk

What about using leveraging those dollars?
Like the countryguy wrote, the a better return is paying down term debt. If you just use it on your LOC that's a recipe for failure.

IMHO Governments *like* add hoc programs, thats how elections are bought.
The program might get axed in the name of deficit fighting anyway.
If farmers ever get significant dollars in those accounts they will just pull the program anyway.
but maybe I'm to cynical

[Fransisco]

Remember what happened with NISA? Too many guys were leaving the money in the accounts and then asking for ad hoc payments. That's what finally killed it.

[caseman]

took my money out and put it towards a down payment on a sprayer..

[farmaholic]

Every one seems to have a valid point. Nisa and AgriInvest have been good programs. AgriInvest is a watered down Nisa. Can someone help me remember the percentage of sales Nisa allowed as a deposit, was it 3%? At 1.5% for AgriInvest, the accounts won't get as big as fast. Also, there are maximum account balances too(I can't find info-is it a % of "Oh Limp Pick" average?) If your max account balance is reached you had better withdraw some otherwise you are not elegible for any more matching deposits--there is a bit of an incentive to withdraw some after the account grows close to maximum values. Tier one(agriInvest), is a bit of a gift, because most farms could weather up to 15% margin loss. It is the Agristability levels that should be enhanced. Tier two from 85-70% of margin--70% loss coverage. Tier three, from 70-0% of margin--80% loss coverage. 60% coverage for negative margins.

[smallguy]

Hi all, just catching up on agriville, have been gone for awhile. What are the restrictions to this program, is it like Nisa were the gov. side is to be pulled out first, and is taxable?? Can you get in or out at any time?

[Burbert]

It is NISA, wit a new Conservative name,
AngriInvest, nothing new except the brand!

[bucket]

Actually burbert, there is a difference, they are only going 1.5 percent of ENS. Nisa used to be 3 percent.

Another fine ****ing by the conservatives, just like their promise of marketing freedom.