RMP is a three-year price support program designed to help Ontario grain and oilseed producers offset losses caused by low commodity prices. RMP was designed in consultation with representatives of the grain and oilseed sector and the Ontario Federation of Agriculture as part of the risk management package.
Questions
- Why do I have to enrol in PI and AgriStability to be in RMP?
- Do I have to enrol in RMP to be eligible for AgriStability or Production Insurance?
- What if I enrolled in 2007 and decide not to participate for 2008?
- If I did not enrol in 2007, can I still enrol in 2008?
- If I want to be in RMP do I need to enrol my winter wheat planted this fall?
- When will I receive the RMP renewal package?
- When will I receive my RMP payment?
- How are seed corn payments determined?
- How are popping corn payments determined?
- How are proxy crops used to determine the payments for minor crops?
- Which crops will receive a payment for the post-harvest pricing period?
- Why did coloured beans not receive a payment for the post-harvest pricing period?
- What happens to the calculation of the 2008 pre-harvest market price if the elevator is not offering bids (forward contracts)?
- Why didn't the support level change for the post-harvest pricing period?
Answers
Why do I have to enrol in PI and AgriStability to be in RMP?
RMP, AgriStability, and PI work together to create an effective risk management strategy for Ontario grain and oilseed producers. By participating in all three programs, producers take full advantage of the protection available from government risk management programs. This decision is a personal management decision that cannot be made by Agricorp. We will be happy to outline all available program details; however, specific examples pertaining to individual producer operations are not available until applications have been submitted.
Do I have to enrol in RMP to be eligible for AgriStability or Production Insurance?
No, you may still participate in AgriStability or PI without enrolling in RMP.
What if I enrolled in 2007 and decide not to participate for 2008?
Participants can leave RMP without penalty or impact to their eligibility for AgriStability or PI. The cancellation deadline for the 2008 program year was
If I did not enrol in 2007, can I still enrol in 2008?
The deadline to enrol for 2008 has passed. It was May 1, 2008.
If I want to be in RMP do I need to enrol my winter wheat planted this fall?
If you want to participate in RMP for 2008, you are required to insure your winter wheat by May 1, 2008 to obtain spring coverage without winterkill.
When will I receive the RMP renewal package?
RMP participants who enrolled in 2007 received a renewal package in
When will I receive my RMP payment?
Ontario grain and oilseed producers who submitted complete RMP applications before the original November 15, 2007 deadline should have received their pre-harvest pricing period payments in December 2007.
Complete applications received before the extended
- Incomplete applications
- Missing PIN or other program requirements
- Applications sent in after the original deadline of November 15, 2007
- Difference in business structure.
We expect to deliver 2007 RMP payments for the post-harvest pricing period beginning in June 2008.
How are seed corn payments determined?
Seed corn payments are based on the support levels and market price for commercial corn. The Average Farm Yield (AFY) used to calculate payments is based on the processor norm.
How are popping corn payments determined?
Popping corn payments are based on the provincial payment amount for corn multiplied by a factor of 2.5. This accounts for the difference in yield potential between popping corn and commercial corn.
How are proxy crops used to determine the payments for minor crops?
For customers who grow minor crops, RMP uses the proxy crop in each county to determine the county AFY and the payment. The proxy crop is the dominant grain and oilseed crop in the county where the minor crop is grown. Each county may have a different dominant or "proxy" crop. Payments on minor crops will only be paid if that county's proxy crop is receiving a payment.
Example: If there are two buckwheat producers, one from Elgin and one from Prescott, one may receive a payment and one may not. If the proxy crop for Elgin (soybeans) triggers a payment, the Elgin producer will receive a payment for his buckwheat. If the proxy crop for Prescott (corn) does not trigger a payment, the Prescott producer will not receive a payment for his buckwheat for the 2007 post-harvest pricing period.
Which crops will receive a payment for the post-harvest pricing period?
Post-harvest payments for 2007 will be paid on corn, seed corn, popping corn, white beans, black beans, Japan/other coloured beans, and on any minor crops for which these crops are the proxy crops.
Why did coloured beans not receive a payment for the post-harvest pricing period?
Coloured beans that are insured under the general Coloured Bean plan that are not identified by market class will not receive an RMP payment for the 2007 post-harvest pricing period. This is because the coloured bean plan has its market price determined through a weighted average calculation. The majority of the crops in this group were cranberry and kidney beans, which did not generate a payment for the post-harvest pricing period. As a result, coloured beans (unidentified by market class) also did not generate a payment for the post-harvest pricing period.
Note: Starting with the 2008 crop year, the general Coloured Bean plan (unidentified by market class) is no longer available. You must insure your beans under one of the four separate market class plans, which were introduced in 2005.
What happens to the calculation of the 2008 pre-harvest market price if the elevator is not offering bids (forward contracts)?
On days when the Forward Contract Price source does not offer bids or forward contracts, RMP will omit those dates (daily) when calculating the actual market prices for spring and winter wheat. The location of the price sources and the dates that the prices are collected will remain unchanged.
Why didn't the support level change for the post-harvest pricing period?
Support levels are determined based on the cost of production calculation. The support level is the level of price protection offered for the entire RMP program year and applies to both post- and pre-harvest pricing periods.
