ONTARIO GRAIN FARMER GOVERNMENT RELATIONS 26 In particular, trucking in Ontario has become a significant issue for grain farmers, who face rising costs, reduced access, and growing administrative hurdles that limit their ability to move crops efficiently. The new DriveON vehicle inspection program has tripled safety testing costs and added requirements, such as mandatory “wheel-off” inspections, causing significant expenses and delays— especially in rural areas with fewer licensed garages. Ontario’s complex commercial licensing system adds further costs and time pressures, ignoring the experience most farmers already have operating heavy equipment. Inconsistent municipal load restrictions force farmers to make extra trips and navigate confusing, uneven enforcement. Meanwhile, insurance premiums have surged by 75% over the past decade despite lower collision rates, and barriers for new drivers make it difficult to attract or retain farm truck operators. Together, these issues are undermining farm competitiveness and adding unnecessary strain to Ontario’s grain sector. BUSINESS CASE: FEDERAL PARTNERSHIP IN ONTARIO’S RISK MANAGEMENT PROGRAM (RMP) Due to the ongoing economic challenges, Ontario’s provincial government has already stepped up. It has committed to increasing funding for the Risk Management Program (RMP) by $100 million by 2027, ensuring that Ontario farmers have the price support insurance they need to stay competitive. This year, Ontario delivered the first 30 per cent of that commitment, increasing the G&O share by $10.5 million, bringing the government contribution to $63 million for the 2025 season. This will rise to $87.5 million once the remaining 70 per cent of the commitment arrives in 2027. When producer premiums are included, total funds available for the 2025–26 marketing year rise to $80 million. However, support levels driven by cost-ofproduction data and lower market prices will generate a pre-harvest liability (the total uncapped payment amount) exceeding $151 million, far beyond current funding levels. If prices remain at similar levels, the post-harvest liability will also be similar. The result will be a 23 per cent proration, meaning farmers receive only a fraction of the coverage they expected. The RMP is designed as a shared federal–provincial program, with the federal government ideally responsible for 60 per cent of the funding, using the same costshare model as for other Business Risk Management (BRM) programs. However, in Ontario, farmers have been operating under a program with only provincial participation, limiting coverage to a maximum of 40 per cent of total need, and in practice, actual support is often considerably lower due to program caps. continued from page 25 If the federal government contributed its 60 per cent share, Ontario’s RMP funding envelope, under the current program design, would rise from $63 million to $219 million (plus premiums) for the 2025–26 program year. That additional support would ensure that farmers receive payments that more accurately reflect the real cost pressures they face. For example, a 750-acre farm, at current-year prices and support levels, would see its annual RMP support increase by more than $21,000, directly improving operating margins by over 25 per cent. The rise in support for other farm sizes can be seen in the table above: WHY FEDERAL SUPPORT MATTERS NOW • U.S. producers continue to benefit from direct income support programs, subsidized crop insurance, and new biofuel and carbon tax credits under federal legislation. This widening disparity in policy support places Canadian grain and oilseed farmers at a competitive disadvantage, as they operate in the same markets without comparable national programs. • The Province of Ontario has already demonstrated leadership by increasing its RMP contribution by $100 million and continuing to collaborate with producer organizations to strengthen risk management tools. Federal participation would build on this progress and signal a unified federal–provincial commitment to Canadian agriculture. • Federal investment would directly increase per-acre payments, lower farm debt risk, and bolster business confidence across rural Ontario. It would also align federal actions with stated national objectives of improving food security and fostering a climate-resilient agricultural sector. PERFECT STORM Ontario’s grain and oilseed producers are navigating a perfect storm of global market pressures, rising input costs, and domestic policy disparities. While worldwide oversupply and weak demand weigh on prices, Canadian farmers lack the federal support measures enjoyed by U.S. producers, leaving them at a competitive disadvantage. On top of market challenges, Ontario farmers face rising trucking costs, regulatory complexities, and increasing insurance and licensing burdens, all of which further erode operational efficiency and margins. Although the provincial government has taken steps to strengthen the Risk Management Program, federal participation is essential to ensure that support levels reflect the real economic pressures producers face. Without this partnership, farmers’ ability to maintain profitability, invest in their operations, and remain competitive on the global stage will remain severely constrained. Sankalp Sharma, PhD, is Grain Farmers of Ontario’s senior economist. • Total increase in RMP payments if the Canadian government contributes a 60 per cent share. Acres 250 500 750 1,000 $7,254 $14,507 $21,761 $29,015
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