The Lucknow Sentinel, 1996-03-13, Page 79Paco 22A44oirm Prowl its
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FOR ALL DAY RELIEF
224,'
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and Clothing.:. } .. Ont. MONDAYS
165.Walace�Avenue N , .._is` .towel , O
"CANADA'S LARGEST DEALER OP PRESCRIPTION ORTHOPEDIC. FOOTWEARR
•
LYNN
L OVY R 1 FARM
SYSTEMS
LTE.
RR #1 KINCARDINE, ONT. (AMBERLEY) 395-2615
411,,
JAMESWAY
JAMES''VU'A: -{Baler) filo Unload rs,
Feeders, Conte ark, Electronic Scales,�!.
Nesseth Manure Purlps
i.� ..Manure Equipment Cutter• "
eau.. !%*CTUR ±
u..o. dr U N
Cleaners, Chain >'and Cable• Freestall
Cleaners, Replacement Chain - all
types, Underground Transfer .Systems, •
LiquidLitKiki.Manore Agitators...and .Pumps
.(PTO ° & Electric).:.` Liquid, Spreaders.
Injectors
BSM, Ltd: The :Leader in All Types of
HOG and DAIRY. Confinement
Equipment
IlliESTEEL Grain Bins, Feed Tanks. Stir-
rotor Drying Bins, Superb Continuous
Grain Dryers
OARmAnc)
FARMA1IC. Feed Processing
Equipment
by RalpbbPearce
Its the farming industry, it's.
not 'hard -`to find a skeptic.
l specially where one's money
is concerned and .el en more so
when the governno at becomes
involved,
Yet the Net Income
Stabilization Account ([5A,) is
one government -sanctioned sav-
ings vehicle that can effectively
double •a producer's
money. According to Ted
Oke, Business Manage-
ment Advisor with the
°.AFRA office in Essex
County, NISA's the best
way for a farmer to double
his income : without
putting up.a second` mail .
box.
Now that• the govern-
went has eliminated the
account's feed co -effi-
cient, hog sales are 100
per cent eligible; no extra
calculating and no confu-
sion. The foes' have been
redesigned and simplified,
And tax advisers and pro-
ducers have become
more -familiar With ° the
program.
Oke . addressed' the ,
Southwestern • Ontario
Pork .. Conference in
Ridgetown earlier `this year and
relayed the . benefits .of VISA,
and hove, with elimination of the.
55 per cent feed co -efficient,
producers are matched, dollar
for dollar by federal and provin-
cial governments.
Working with standards of
es cen
$115000 in annual sales and
$15,000 in costs, the Eligible
Net les would be $100,000.
Wit esystem, that
figure woad have automatically
been reduced to_ $55,000
($100,000 x 55 per coat feed co-
efficient), From there, the ENS
would .be multiplied by 3 per
cent (base eontribution • rate) for
a VISA `deposit of $14.650,
account balance of b,).
Factored into ,a five- or 10-
year pbn and using 27 per cent
taxation for this example, that
$b,OOOa at an *annual interest
rate of 9 per cent on the farmer's
account and *6 per cent on the
government's money, would
grow Into $37p500% or $31,425
after-tax. That's more than dou-
ble the farmer's investment of
$15,000 over 5 years. In,
an . RRSP that same
$ :5,000 ($4,110 gross•.
deposit with 27 per cent
taxation $3,), invest-
ed at *5.98 per cent would
yield $24,578 or $17,940
after taxes. At the end of
10 years, the amounts
would be $74,961 (after
27 per cent taxation) for
N 1SA and $41,910. for an
RRSP at the satne•tax rate.
If there's a drawback to
the NISA plan, it's that
RRSP deposits• are tax
deductible and a method
of loweririg taxable
it come. MA's deposits
haven't that clout,
Still, . said •Oke,. the
numbers are enticing. And
NISA also comes with a
non matchable 20 per cent
of eligible sales deposit
which can -be carried_ forward
for five years, Oke alio insisted
:that producers with Their money
in the Consolidated Revenue
Fund or CRF in`innipeg trans-
fer.it to theinancial institution
•turn to page 23A
snatched by the government (2
per cent federal, 1 per cent
provincial) for'$3,300,
Under .the new system, 'ENS
is the ftill $100,000 for a contri-
bution of $3,000 (ENS •x 3 per
.cent plus the government
matching contribution for a total
SUDENGA: Computerized deed Processing
Systems
lower ,
A r!.�. �let�it.',Rapnd ��Bale Chopper/B o s,,
9
Motorkodl, Feed Carts, Bedding..
'Choppers,;Rollers, Hammermills,
Augers, Computerized TMFt Mixing.
LUCK/NOW:, Stationary And :Mobile MR Mixers
' 'e Do 'he Complete-J+b Eyen The Wiring
CLINTON, WINGHAM AREA CALL:
JOHN THOMPSON, Sales Rep. 357-2018
o erl l 'shade trees willprevent •the sun a s: r m +dere sly•
ea In the. et l' idin C r e see E' Iar";., a selection of shade trees.
frau.. tt. - el+ In the :fir visit.