Self-directed risk management
The self-directed risk management (SDRM) plan for edible horticulture producers is part of Ontario's Risk Management Program (RMP) to help producers manage risk beyond their control. Under SDRM: Edible Horticulture, producers establish self-directed risk management accounts with Agricorp to help mitigate farm risk. Producers can ask for a government contribution of a percentage of their allowable net sales.
Production Insurance and AgriStability are complementary programs that address different risks faced by Ontario producers.
While Production Insurance protects Ontario producers from yield reductions and crop losses caused by factors beyond their control, AgriStability protects whole farms against margin declines greater than 15 per cent.
When you participate in both AgriStability and Production Insurance, you maximize the benefits of the government risk management programs available to you. For example:
- Production Insurance claim payments count as income in calculating your AgriStability reference margin.
- Depending on weather and/or market conditions, in a given year you could receive an AgriStability payment, a Production Insurance claim – or both.
AgriInvest is a savings account with matching government contributions. You can withdraw the funds at any time for risk mitigation or investments. In Ontario, AgriInvest is delivered by Agriculture and Agri-Food Canada (AAFC).
Your Production Insurance claims are included when AAFC calculates your allowable net sales (ANS), which is used to determine your maximum matchable deposit under AgriInvest. This protects your ANS in the years that you have a Production Insurance claim.