new nisa

[lonewolf]

Has anyone seen the new information on the new nisa program. I glanced at it yesterday and it appears that it is going to be costly to get any sort of meaningful coverage.

[Ron]

I thought it wasnt to bad for the coverage (greater than 70% at least). I think most people have the needed funds in their nisa account and if they dont they have 3 years to get the money in. From what I understand the money if unused stays in the account year to year. We will have to see what happens to the existing nisa money.

[graham_gilchrist]

The new NISA will have a different feel to it. Your production reference margin will be net sales less only the expenses directly related to the commodity.This means repairs, machinery costs, family salary, office and admin, licences, advertising, legal or anything not directly relating to growing the commodity will be excluded. All things equal the margin level will be higher.


You will receive a notice every year telling you your "insurable" margin and then you choose the 70% (must), or higher with the appropriate fee. The examples on the NISA site has a reference margin of $100.000.00 costing $26000 for the 100% coverage.($14000 for the must 70%)

In the claim year, in short NISA will pay you to bring you back to your "insured" level. The fee you pay ($26000.00) can be paid 1/3 down and the rest due if and when you have a claim. NISA will require the full "premium" in deposit to collect the "insured" margin.


Starting in 2005, the "old NISA" will be phased out with a 20% reduction in Fund 1 and 2 peryear. Complete payout by 2009.No extra interest bonus after this year.

gg