Risk Management Program
Sheep

How it works

Program payments are made if the market prices for sold livestock fall below your support level, which is ba​sed 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 lambs when the average market price falls below the RMP support level during the payment calculation period. Payments are based on the difference between the support level and the average market price of a 75 pound lamb on per pound basis. ​

  • Payments are calculated six times per year following each two-month payment period, and issued after each semi-annual sales report has been submitted and processed.
  • Market prices are collected weekly and averaged for each two-month payment period.
  • The support level remains constant for the program year.

​The calculation is repeated for each two-month production period and the payments for the first three pr​​​​oduction periods are compiled into the first semi-annual payment.

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.

Payment calculations

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.

RMP payments for lambs are calculated on a per pound basis for eligible weight gain. The RMP support level is based on the average market price of a 75-pound lamb.

Lambs weighing from 30 pounds up to 115 pounds live weight will have a payment calculation based on their actual live weight.

Lambs weighing more than 115 pounds up to 126 pounds live weight will have a payment calculation based on a maximum of 115 pounds;

Payments will not be made for lambs weighing less than 30 pounds or more than 126 pounds live weight.

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 56 per cent of live weight
  • When the head is removed from the carcass, dressed weight is 53 per cent of live weight

Payment caps

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 AgriStabilitySee RMP and AgriStability: How they work together.

​​​​​Premium​​s

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.



Ontario - Agricorp