Ontario's Risk Management Program (RMP) helps producers manage risks beyond their control, like fluctuating costs and market prices. RMP works like insurance to help Ontario producers offset losses caused by low commodity prices and rising production costs. An overview of the Risk Management Insurance Program for cattle can be found on the Agricorp website by clicking here.
If you have further questions about the program, please contact Agricorp at 1.888.247.4999 or the Beef Farmers of Ontario (BFO) office at 1.866.370.2333.
You can also learn more by checking out this webinar, conducted in partnership with BFO and Agricorp, by clicking here. This webinar shares information about the program as well as how you can implement on your operation.
Announced in the 2011 budget as a permanent program, Ontario's Risk Management Insurance Program (RMP) helps farmers manage risks beyond their control, like fluctuating costs and market prices. The program is available for the cattle, edible horticulture, grains and oilseed, hog, sheep and veal sectors. RMP complements AgriStability and Production Insurance. AgriStability was designed to stabilize whole farm income and production insurance was created to mitigate production loss. RMP is comprised of three major components: an RMP program for Livestock; RMP for Grains and Oilseeds, and a Self Directed Risk Management Program (SDRM) for the edible horticulture sector. All three program components were created after extensive consultation with the sectors involved.
In 2012, after nearly a year of positive dialogue between the commodity organizations participating in the provincial Risk Management Insurance Program and Self Directed Risk Management Program, the Ontario Agriculture Sustainability Coalition (OASC) was pleased to announce the continuation of both programs in 2013 with some modifications to ensure that the programs adhere to the $100 million spending limit outlined in the 2012 provincial budget.
This permanent risk management insurance program provides our farmers the tools they need to sustain their operations so they can continue to provide high quality, locally grown food to Ontario consumers.
BFO STATEMENT: RISK MANAGEMENT PROGRAM ANNOUNCEMENT
Beef Farmers of Ontario Respond to RMP Announcement
July 16, 2020 (Guelph, Ontario) - Beef Farmers of Ontario (BFO) applauds Premier Ford and Minister Hardeman for today's announcement to provide an additional $50 million investment into the Ontario Risk Management Program (RMP).
The RMP is a cost-shared insurance program designed to provide stability to Ontario's farms by providing partial financial protection against downturns in commodity markets. Today's announcement will provide much needed support for this vital, yet critically underfunded program at the most important of times, when farms are struggling with COVID-related market uncertainty and losses.
The RMP was designed and developed with direct input from Ontario farmers in partnership with the provincial government as a measure to help fill critical gaps left by federal programs. BFO would like to commend the ongoing effords of Premier Ford and Minister Hardeman to strengthen the federal suite of business risk management programs for Ontario farmers, in addition to today's welcomed investment in the RMP program. BFO stands with the Premier and Minister in their pursuit of improvements to these programs.
"I would like to thank Premier Ford and Minister Hardeman for the investment into the RMP program," says BFO President, Rob Lipsett. "Today's announcement comes at a critically important time as our sector struggles to combat COVID-induced volatility and losses. BFO looks forward to continued discussions with the province on ways to further strengthen this important program to ensure stability and sustainability for our sector."
BFO would also like to thank Craven Farms for graciously hosting this important announcement at their farm.
In 2018, Premier Ford campaigned on the inability of the RMP to meed the needs of farmers at current funding levels and the need for additional investments. BFO applauds the Premier for fulfilling this important commitment. The announcement also represents an excellent investment by the province. A study by Cummings and Associates found every $1 dollar invested into the RMP results in $2.24 in positive economic activity. In addition, the study found 62 per cent of participating farmers indicated the program had a positive effect on their decision to hire and/or maintain employees.
The beef industry is an important economic driver of Ontario's agri-food sector, contributing $2.69 billion to Ontario's GDP on an annual basis from primary production, processing and retail. Gross sales from the sector exceed $13 billion annually and sustain more than 61,000 jobs.
To read the full news release, click here.