NISA

[dnach]

Looking for some perspective on the changes to NISA, god, bad or otherwise. My opinion is that it is about time some of these changes were made.

[winston]

What changes do you like?

The higher premiums or the reduced coverage?

[dnach]

Basicaly just the fact the NISA will not be used as a retirement fund. To much money has been sitting in NISA accounts over the past few years and some , not all, farmers still want disaster aid. This has sent a negative message to Ottowa. Some of the changes I do not like ie: higer prems and lower coverage, but too many farmers were not using NISA for what it was intended and it has burnt all of us now.

[winston]

Yes you are correct. ottawa did not like seeing all that money sitting in NISA accounts even when some (or lots) of it could have been drawn out.

I was at a seminar and it seems like with the new program you have to put money in a nisa-like fund and when your margin triggers a payout you take the money you put aside out and the government matches it. If the decline in your margin is drastic the government pays out even more

The example they gave was to protect a $100,000 margin you would need to have $25,000 in your account.

The calculation of margin will only include the basic costs like fert, herbicides, seed and fuel.

[TJM]

If only they we could get paid fairly for what we produce, all the programs that the govs. could dream up would not produce a similar effect. We live in a world were people think nothing of spending thousands to go on holidays, but complain when the price of the basic necessities go up a few cents. I know there are still people who can not afford these basic items and that isn't right either. What do we do? Have different prices for different classes? In effect, that is how all these gov. programs treat agriculture.

On a different note, today as I was paying some bills, it dawned on me.......Agriculture is the only business I know of that pays the freight both ways, on what we buy and what we sell. Buy a truck, car or tractor and we pay the freight. Sell a truck load of grain, hogs, cattle or even post holes and we pay the freight. This is not right. I know, I know, it's built into the price whether you can read it on the sticker or not

[dnach]

Unfortunatly you are right, if only we could get paid for what our products are worth. But the reality is, it will probably get worse if the FSU and Brazil continue to produce cheaper commodities. I still belive that Canadian farmers are the most efficient farmers in the world, but it is the cost of elevation and transportation that is going to kill our bulk exports. So lets focus on more local North American markets (organic and other niche markets), because home is where the money is.
By the way there will always be a need for programs like NISA because of the climate we live in, crop insurance helps but it is not enough.