SuperNISA

[charliep]

Just to note the $26,000 is based on a production margin of $100,000.

I forgot the name of margin so I did a little hunting this am to come up with more information on super NISA.

http://www.agr.gc.ca/puttingcanadafirst/index_e.php?section=brm_gre&group=docu&page=brm_gr e_pres0203

I encourage everyone to read this over and understand as best you can. Ask questions - I am not the NISA guru but can help some.

The reason I am suggesting is there are a bizillion new risk management products - some more effective than others. You need to understand them and pick the best ones for your business. Hopefully we can get some discussion going and work towards how to apply.

[TOM4CWB]

Charlie;

The production margin seems to be still changing.

Farmers want more expences in the margin... but the more expences that are included... the less negative margin coverage is folded into this new program.

The complexity of these calculations have led many who have seen computer runs of the 103,000 1996 to 2000 simulations... that there will be 3 times the farmer contribution... with significantly less total government money paid out in the new Nisa program.

Has anyone seen the simulation rundown on the new NISA after all the recent changes that have been announced?

[charliep]

Just reviewing the Super NISA presentation again , the required margin/deposit for $100,000 worth of production margin should be $20,000 - not $26,000. $10,500 on the first $70,000 (15 %), $4,500 on the next $15,000 (30%) and $5,000 on the last $10,000 (50 %). The last $5,000 of production margin cannot be covered under this program.

As a note, hopefully someone toasts the NISA name - this is a brand new program.

[charliep]

I know the people who are doing the work on ourside. Not so sure on the feds.

Interesting we are working on a April 1 deadline to come up with programs. There is absolutely no time to get information out to farmers so they can make informed management decisions - everyone is likely getting ready for spring seeding and in the process of calving. The need still exists for farmers to understand the programs, know how they can be used in managing their business risk and from there make informed decisions that have a best fit with their business plan.