After nearly a year of positive dialogue between the commodity organizations participating in the provincial Risk Management Program and Self Directed Risk Management Program, the Ontario Agriculture Sustainability Coalition (OASC) has announced the continuation of both programs with some modifications to ensure that the programs adhere to the $100 million spending limit outlined in the 2012 provincial budget.
Ted McMeekin, Minister of Agriculture Food and Rural Affairs, has notified OASC commodities that the provincial government has accepted the Coalition’s proposal to modify Ontario’s Risk Management Program (RMP) for livestock and grains and the Self Directed Risk Management Program (SDRM) for edible horticulture beginning in the 2013 program year.
“We are very pleased with this decision,” said Amy Cronin, chair of Ontario Pork and chair of OASC.
“This positive outcome was the result of close collaboration among all the commodity groups involved and the assistance of the Minister, and OMAFRA and Agricorp staff,” said Cronin.
“We can now truly say that RMP and SDRM have been designed by farmers for farmers, and despite the fiscal realities brought on by the global economic situation, these programs will remain a valuable tool to help farmers manage their risk and reduce income volatility,” Cronin said.
Much of the program design for both RMP and SDRM remains unaltered. However, there are two significant changes within the program to note.
Firstly, premiums will now be retained year over year in a separate, commodity-managed fund to address years when provincial funding is not enough.
Secondly, work has been done by commodity leaders to ensure that although the programs are capped, a mechanism is in place to allow the funding to address the greatest need.
Grain Farmers of Ontario chair Henry Van Ankum sees the creation of the RMP Premium Fund as an important innovation.
“For the first time, premiums collected will be held for farmers and not paid into the general revenues of the province,” Van Ankum said. “This positive change will allow us to save unneeded premium funds in good years for the year when they are needed most.”
“The Self Directed Risk Management program for the edible horticulture sector will essentially remain the same, however as with RMP, payments may need to be prorated should the funding allocation for edible horticulture be insufficient to cover a fully funded program,” said Mac James, chair of the Ontario Fruit and Vegetable Growers Association.
“With our growers coming under increasing cost and competitive pressures, programs like SDRM give growers an important tool in managing their farm business risks,” said James.
Program materials including applications and handbooks will be available in the spring.
Individual commodity organizations will be providing additional information to their members in the near future.
For updates, visit agricorp.com.
The Ontario Agriculture Sustainability Coalition is comprised of Ontario’s leading non-supply managed commodity organizations, including Ontario Cattlemen’s Association, Grain Farmers of Ontario, Ontario Fruit and Vegetable Growers Association, Ontario Pork, Ontario Sheep Marketing Agency and Ontario Veal, as well as the Ontario Federation of Agriculture.
