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 hogs when the average market price falls below your support level during the payment calculation period. The average market price and support level are calculated separately for each hog category. Each category also has a separate payment calculation. Payments are issued at the end of each sales reporting period after your sales report is processed.
For all three hog 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 your reported date of sale. If you are enrolled in multiple categories, the support levels and market prices are calculated back a number of weeks corresponding to each production 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.
Early weans and feeders (including off-type animals)
Early wean and feeder payments are calculated on a per-head basis.
Growers/finishers (slaughter sales above 87.5 kilograms live weight only)
Grower/finisher payments are calculated on a per-kilogram weight gain basis, up to a maximum of 134 kilograms weight gain per hog (the maximum load average weight of 159 kilograms live weight minus the deemed starting weight of 25 kilograms).
The minimum eligible sale weight to trigger a payment in the grower/finisher category is 87.5 kilograms live weight. Grower/finisher hogs weighing less than 87.5 kilograms (e.g. barbecue pigs) and breeding stock may be eligible for payment under the feeder category.
Conversion from dressed weight to live weight
Sales reported as dressed weight will be converted to live weight as shown below:
- When the head remains with the carcass, dressed weight is 80 per cent of live weight
- When the head is removed from the carcass, dressed weight is 74 per cent of live weight
Coverage in multiple categories
If you enrol in multiple categories because your hog production spans more than one category during your ownership, your payment will cover all categories in which you have enrolled. Payment will be made for all eligible categories when the animal is ultimately sold.
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.