Ontario’s Risk Management Program (RMP) for grains and oilseeds has moved past its pilot phase and "transition" year by setting the premium rates producers will now have to pay to participate.
Renewal packages were to be mailed out to eligible crop producers last week for the 2012 edition of the RMP, which the province made permanent last year.
Unlike in 2011, which was dubbed the program’s "transition year," producers will be required to pay premiums. The 2012 schedule of RMP premiums and support levels for various crops at 80, 90 or 100 per cent coverage was laid out Monday by Agricorp, the province’s ag program delivery agency.
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Also, where participation in AgriStability and production insurance was voluntary in 2011, crop growers must now take part in those programs to be eligible for the RMP.
A premises ID number, which was voluntary last year, is now also required for crop producers to take part in RMP.
The RMP for crops is meant to help Ontario growers offset any losses caused by low commodity prices and rising production costs. Payouts are triggered if a crop’s market prices fall below the annual support level, based on a cost of production figure, calculated each year by the provincial ag ministry.
RMP payments are counted as an advance on the provincial portion of a grower’s AgriStability payment for the program year; a participating grower keeps the greater of either the RMP payment or the provincial portion of the AgriStability payment.
Payments from the RMP for crop growers are capped at $1.2 million per participant per program year (pre- and post-harvest combined). The cap is applied to the total payment for the program year before calculating adjustments for AgriStability.
In cases where the payment cap for a participant is reached, he or she may be entitled to a partial refund of the RMP premiums paid.
Related story:
Ontario lays out details for permanent RMP, June 29, 2011
