9 ONTARIO GRAIN FARMER OCTOBER 2024 Everything you need to know about RMP BUSINESS SIDE WITH... (J.M.) WHAT IS THE RISK MANAGEMENT PROGRAM? (M.S.) The Risk Management Program (RMP) for grains and oilseeds helps Ontario farmers cover losses caused by fluctuating costs and market prices. Payments are made if the average market price for a commodity falls below its support level. The program allows farmers to invest and grow their business with confidence knowing that they are compensated if production costs increase, or market prices fall. The program is designed to offer farmers peace of mind in times of market volatility. It is available for farmers with Ontario-grown grain and oilseed crops, including farm-fed grains, edible beans, and crops grown for seed. RMP: Grains and Oilseeds was designed in consultation with representatives of the grain and oilseed sector and the Ontario Federation of Agriculture. The program was fully launched in 2011, and over the years, a number of changes have been made to RMP to meet the needs of Ontario farmers. RMP is jointly funded by the government of Ontario and producer premiums. Over the last five years, RMP: Grains and Oilseeds has paid out: 2023: $177.5 million 2022: $116,000 2021: $170,000 2020: $50.8 million 2019: $33.3 million HOW DOES THE PROGRAM WORK? Support levels are based on the industry average cost of producing a crop, which is calculated annually by the Ontario Ministry of Agriculture, Food and Agribusiness. To participate, farmers sign up, pay premiums based on their insured production and their chosen coverage level (choose from four different coverage levels - 80, 90, 95, or 100 per cent), and Agricorp takes care of the rest. Farmers do not have to file claims or report information to receive payments, because Agricorp calculates the claim position during the two pricing periods and automatically issues payments to farmers who have a loss. RMP coverage is unique. Each farmer’s premium is based on the historical yield of their farm and the crops they produce. They also choose a coverage level to reflect the amount of risk coverage their farm needs. In addition to covering losses caused by fluctuating costs and market prices, the unseeded acreage coverage under Production Insurance is also extended to RMP customers. Unseeded acreage payments for RMP: Grains and Oilseeds are calculated the same as payments for planted acres. WHO IS ELIGIBLE? To be eligible for RMP: Grains and Oilseeds, farmers need to: • Grow at least one eligible grain or oilseed crop • Enrol their entire acreage of each eligible grain and oilseed crop grown for the crop year • Pay the premium(s) • Participate in Production Insurance and meet all Production Insurance requirements and deadlines • Participate in premises identification If farmers are new to the program, they need to submit an application to Agricorp. This can Michael Smyth, Senior Industry Specialist, Agricorp www.agricorp.com Business side Jeanine Moyer be completed online (www.agricorp.com), or by contacting Agricrop and submitting applications by mail or fax. Farmers should understand that RMP is intended to work like insurance and participation needs to be continuous. If they cancel after a full year of participation, they will be ineligible for enrolling again for the current year, and the next two years. HOW ARE RMP PAYMENTS CALCULATED? RMP payments are the product of a farm’s average farm yield (AFY), their reported acreage and the difference between their support level and the market price. Each payment calculation is based on 50 per cent of a farm’s AFY because there are two pricing periods for each year. Payments are calculated in two pricing periods: • Pre-harvest payments will be issued after all pre-harvest pricing periods end, if the market price for an enrolled crop is below a farmer’s support level. Preharvest market prices are based on the average of forward contract prices or future delivery prices for six months before the harvest of each major crop. • Post-harvest payments will be issued after all post-harvest pricing periods end, if the market price for an enrolled crop is below a farmer’s support level. Postharvest market prices are based on the average of cash or spot prices for six months during and after harvest. Visit www.agricorp.com for more information about RMP.•
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