Net Income Stabilization Account

Under the AgriInvest program (and the similar Agri-Québec program), if a farmer contributes up to 1% of his allowable net sales (or $15,000, if less) to an AgriInvest account, the federal and provincial government will together fund a matching contribution. The account can accumulate from year to year until it is used to recover from small income shortfalls, or make investments to reduce on-farm risks. In confirming that these accounts are "net income stabilization accounts,” CRA referred to the "net income stabilization account” definition in s. 248(1) (respecting AgriInvest accounts) and Reg. 5503(2) (respecting Agri-Québec accounts).