Net Income Savings Account - NISA - Key Elements of Four Farmer Savings Account Incentive Programs - Canada - Brief Article

Choices: The Magazine of Food, Farm and Resource Issues, Fall, 2001

Participation

Nearly all farm enterprises are eligible for participation.

In Canada, NISA provides a voluntary safety net opportunity for livestock, forestry, and specialty crop enterprises that do not have income support programs or ready access to affordable insurance products.

Management

NISA payments are decoupled for planting flexibility. Matching payments to farmers are based on whole farm gross income. Payments are decoupled from commodity-specific production, prices, and planting decisions.

Program Attributes

Income stabilization capability grows over time. The 1999 average NISA balance per farm was C$16,000. Farmers who are eligible for withdrawals are not forced to take them.

Fiscal Attributes

Government spending may become more stable and predictable. Because matching deposits are spread out over several years, government spending on NISA is less variable from year to year compared to other "pay-as-you-go" counter-cyclical programs or ad hoc disaster programs.