NISA offering advance access

Net Income Stabilization Account (NISA) administration is offering advance access to accounts for the 2003 year.
This advance access is available to all qualifying NISA account holders, including farmers dealing with BSE-impacted markets.
The advance access process is similar to the Interim Withdrawal option available in the previous NISA program.
The Interim Withdrawal option allows you to receive your withdrawal entitlement in the same stabilization year as your financial need arises. This will be especially important for producers impacted by the BSE livestock markets in 2003.
To be eligible for an interim withdrawal for 2003, you must:
•Have applied for a NISA application for the 2002 stabilization year and received your Deposit/Withdrawal Options Notice (DWON).
You do not have to make your 2002-deposit entitlement prior to applying.
Final application deadline for the 2002 NISA stabilization year is Dec. 31, 2003.
•Have an account balance that is sufficient to cover the interim withdrawal payment; and
•Complete and submit the interim withdrawal application and worksheet.
Interim withdrawal applications, with include pre-printed account information, are only available to participants upon request. You will need to call the toll-free line to NISA at 1-800-665-6472 and request an advance on 2003.
An application form and a calculation worksheet to assist you in estimating your withdrawal entitlement will be sent to you in the mail.
To apply, you will need to estimate what your gross margin is for 2003. You then compare your estimated 2003 gross margin to your previous five-year average gross margin that will be pre-printed on the form.
If the 2003 margin is lower than your previous five-year average, you can request to take the difference out of your account—if sufficient funds are available.
There also is a minimum income trigger option for calculating your interim withdrawal entitlement. The minimum income threshold is $20,000 for an individual, or $35,000 for a family.
The current NISA policy is that overpayments are required to be repaid. In addition, a three percent penalty will be assigned should your interim withdrawal exceed the actual triggered withdrawal entitlement by more than 20 percent.
Producers should clarify with the NISA administration for any update on policies and penalties when requesting their interim withdrawal application for 2003.
Using the advance access for 2003 allows NISA account holders to access NISA funds now without having to close their NISA accounts before the future of NISA is finalized.
A NISA account with a zero dollar balance is still considered an active one.
Contact NISA at 1-800-665-6472 to determine how this advance access option applies to your account.

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