Program payments are made if the market prices for sold livestock fall below your support level, which is based on the industry average cost of producing livestock (target price) and the level of coverage you choose. You can choose a coverage level of 80, 90, 95 or 100 per cent.
Payments reflect available funding. An interim payment rate is used to make sure every single producer has equal access to the funding, whether they trigger a payment at the beginning or end of the program year. The interim payment is based on market prices, support levels at the traditional provincial share of 40 per cent and available RMP funding.
RMP payments are issued for your sold cattle when the average market price falls below your support level during a payment calculation period. They are based on the difference between the support level and the average market price. In each category, the average market price, support level and payments are calculated separately. Payment schedules also differ by category.
- Payments are calculated twice per year after each sales reporting period.
- The support level remains constant for the program year.
- Market prices are calculated twice per year, from January 1 to June 30 and from July 1 to December 31 of the current program year.
- Steer and heifer payment rates are blended (50/50) to form a common payment rate.
- While coverage for calves is provided on a per-head basis, those weighing less than the maximum weight (500 pounds for heifers and 550 pounds for steers) will have payments prorated based on their actual weight. Calves sold at less than 350 pounds are not eligible for payment.
Backgrounder and feedlot categories:
- Payments are calculated every week and compiled after each sales reporting period.
- Both the support levels and the market prices are calculated every week, and will vary from week to week depending on fluctuating commodity prices. The support level and market price are based on the reported date of sale. If you are enrolled in multiple categories, the support levels and market prices are calculated back the appropriate number of weeks to match the production period of your enrolled program categories.
- Steer and heifer payment rates are blended (64/36) to form a common payment rate.
- Coverage is provided on a per-pound basis. Payments are calculated up to the maximum live weight in each category. Any reported weight above the maximum is not eligible for payment in that category.
Additional details on the support level (target price multiplied by your coverage level) and market prices are published in the RMP for livestock Calculating Target and Market Prices Information Sheet.
Annual government funding is available for producers through RMP. To ensure producers who trigger payments at different times of year have equal access to the funding, an interim rate is used to calculate payments. As the program year progresses, the interim rate may be adjusted. If this happens, you will receive an adjustment payment. See
How your payments work – RMP for livestock.
The cow-calf category operates on a per-head basis; however, calves weighing less than the maximum weight will have payments prorated based on their actual weight, down to a minimum of 350 pounds.
Backgrounder and feedlot categories
The backgrounder and feedlot categories operate on a per-pound basis. Payments are calculated only up to the maximum live weight in each category.
Coverage in multiple categories
If you enrol in multiple categories because your cattle production spans more than one category during your ownership, your payment will be calculated based on all categories in which you have enrolled. Payment calculations are triggered for all eligible categories when the animal is ultimately sold. Calves in the cow-calf category may be eligible for a payment without being sold.
Requests for payment without sale
Calves enrolled in the cow-calf category that are not being sold may qualify for a payment if they are being kept for breeding purposes.
You may request a payment without sale calculation for these calves when they reach the maximum eligible weight in the cow-calf category (500 pounds for heifers and 550 pounds for bulls). To request payment, you must submit a
Payment without sale report to Agricorp. This report is included with your sales report and is also available on agricorp.com.
Animals submitted for payment without sale are not eligible for coverage under the backgrounder or feedlot categories.
RMP payments for each livestock category are capped at $1.2 million per participant, per program year. For example, if you participate in the cow-calf and the feedlot categories under RMP: Cattle and the grower/finisher category under RMP: Hogs, your payment for each of the three categories is capped at $1.2 million. The cap is applied to each category's total payment for the entire program year before calculating adjustments for AgriStability.
Link with AgriStability
If you choose to participate in AgriStability, your RMP payment is counted as an advance on the provincial portion of your AgriStability payment for the corresponding program year. You keep the greater of the RMP payment or the provincial portion of the AgriStability payment. Because RMP is provincially funded, it has no impact on the federal portion of AgriStability payments.
If you participate in more than one RMP plan, the sum of all payments will be offset against AgriStability.See
RMP and AgriStability: How they work together.
You are required to pay RMP premiums each year. Premiums are based on your chosen coverage level and insured production for the year.
RMP premiums will be collected by Agricorp and managed by the Farmer's Risk Management Premium Fund which is made up of the participating commodity groups. The Farmer's Risk Management Premium Fund may be used to supplement payments in years of greater need.