Essentially, when a producer deposits into AgriInvest and there's the government match going into the account, there are two separate funds within the account for each producer. The current rules are that they must withdraw the government match before they withdraw their own contributions, and that triggers a tax liability.
We have heard from members directly that they are hesitant to do that and create a new tax liability. It has contributed to many members leaving funds in the program when they would like to take them out to invest proactively in their operations, whether it's to increase efficiency, reduce risks they face or when they're in a difficult financial situation. Reducing that barrier of the tax liability that's created when withdrawing from the account removes another obstacle for producers to access those funds and be much more proactive in managing their risks and increasing the efficiency of their operations.
