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 large margin declines caused by any combination of production losses, adverse market conditions, or increased costs.
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.
Advance Payments Program
The Advance Payments Program, delivered by the Agricultural Credit Corporation (ACC), is a federal program that provides low-interest cash advances to farmers.
Advances up to $1 million are available, with the first $100,000 being interest free and the remainder (up to $900,000) at the prime interest rate. The loan can be paid off as the current crop is sold or within 18 months after the program start date of November or April (depending on the commodity).
Crop farmers must participate in AgriStability or Production Insurance or have the inventory on hand to qualify for the program.
For more information about the Advance Payments Program, visit the
ACC website or call 1-888-278-8807 to apply.
Commodity Loan Guarantee Program
The Commodity Loan Guarantee Program, delivered by the Agricultural Credit Corporation (ACC), is a provincial program that provides farmers with access to operating loans for crop planting, cultivating and harvesting expenses.
Qualifying farmers can borrow up to $750,000 at the prime interest rate, and the loan is paid off as the current crop is sold, with the final repayment deadline being 16 months after the program start date of October.
Participation in Production Insurance is required to qualify for this program.
For more information about the Commodity Loan Guarantee Program, visit the ACC website or call 1-888-278-8807 to apply.