Payments are made if a crop's market prices fall below the annual support level. The support level is based on the target price, which is calculated annually by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA). The Ontario government announced an increase in available funding for the Risk Management Program (RMP), from $100 million to $150 million, starting with the 2020 program year.
RMP payments are the product of your average farm yield (AFY), your reported acreage, and the difference between your support level and the market price. Each payment calculation is based on 50 per cent of your AFY because there are two pricing periods for each year.
Note: For seed corn, AFY is replaced with the settlement bushels factor, listed on the seed company contract.
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 additional funds after the post-harvest pricing period. See
How your payments work – RMP: Grains and Oilseeds.
Unseeded Acreage Benefit
Payments may also be made for unseeded acres. The unseeded acreage benefit (USAB) provides coverage in case any insured peril except drought prevents you and a large number of growers in your area from planting or seeding all or part of your insured acreage. To qualify for USAB, you must report your unseeded acres to Agricorp by June 15. For more details about USAB, please see the handbook.
Participant payment caps
Payments for RMP: Grains and Oilseeds are capped at $1.2 million per participant, per program year (pre- and post-harvest combined), where participant refers to a sole proprietor, partnership or corporation. The cap is applied to the total payment for the program year before calculating adjustments for AgriStability. Caps for other RMP plans are applied separately. In instances where the payment cap for a participant is reached, the participant may be entitled to a partial refund of their premium.
Linkage with AgriStability
If you choose to participate in AgriStability, your RMP payments are counted as an advance on the provincial portion of your AgriStability payment for the corresponding program year. You keep the greater of either 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. See
RMP and AgriStability: How they work together.
You are required to pay RMP premiums each year. RMP premiums will be collected by Agricorp and managed separately by each participating commodity group. The premium fund will provide additional support to producers when they need it most, as determined by the commodity groups.
Premiums collected will be held for participating producers and not paid into the general revenues of the province.
Premiums are charged for planted and unseeded acres:
- Unseeded acres for RMP will be based on unseeded acres reported for Production Insurance.
- Premium calculations for unseeded acres will be based on the premium rate for the dominant crop.
Balances owed to the Crown
Agricorp is required to recover balances owed to the Crown, including any RMP overpayments that may occur. Overpayments may occur as a result of incomplete program applications, processing errors, changes to farm operations and the nature of advance payments to producers in financial distress.
If you have a balance owing, you must repay the balance, including interest, within three years of the date you were notified about the debt. You must also submit a repayment plan outlining how you plan to repay the debt. Interest will be charged on any outstanding balance owing for more than 30 days.
Agricorp also recovers overpayments from any program payments you may be eligible to receive. As such, RMP overpayments may be recovered from other program payments and overpayments from other programs may be recovered from your RMP payment.