AgriInvest is a savings account with matching government contributions. In Ontario, AgriInvest is delivered by
Agriculture and Agri-Food Canada (AAFC).
For Ontario producers, AgriInvest has four main steps.
Submit your tax information using the correct
form. Your tax information will be sent to AAFC for AgriInvest purposes.
Individuals send their T1163 to Canada Revenue Agency
Corporations, trusts and special individuals send their Statement A to Agricorp
AAFC will use your tax data to calculate your maximum matchable deposit and will send you a deposit notice.
Maximum matchable deposit
Each year, you can deposit up to 100% of your Allowable Net Sales, with the first 1% matched by governments.
For AgriInvest, the maximum ANS is $1,500,000 per year. Based on this limit, the largest matching government contribution would be $15,000.
Two funds in your AgriInvest account
Producer deposits are held in fund one and government contributions are held in fund two.
Because fund one holds producer after-tax deposits, withdrawals from fund one are not taxable. Government contributions (fund 2) and interest earned on both funds are not taxable until withdrawn and are taxed as investment income.
Make a deposit into your AgriInvest account. You will receive a matching government contribution.
Each time you make a deposit to your AgriInvest account you will receive an
AgriInvest Deposit Confirmation Notice & Statement of Account outlining all account transactions since your last deposit.
You can withdraw funds at any time through your financial institution.
When you withdraw funds from your AgriInvest account, you receive money from fund 2, which is taxable. Once fund 2 is depleted, fund 1 is available.