What is the Risk Management Program?

by Brenda Miller-Sanford, Business Operations Manager

The Risk Management Program (RMP) is essentially a price insurance program designed by farmers for farmers as a workable long-term solution to the negative impact of grain and oilseed prices artificially depressed by foreign subsidies.

The RMP is a commodity specific support program that potentially triggers payments twice a year whenever "opportunity" prices for a six-month period drop below the selected support price per commodity.

· The average of provincial new crop forward contract offers for delivery to local primary elevators at harvest is the opportunity price for the first six-month period prior to harvest;
· The average of provincial spot (old crop) price offers for delivery to local primary elevators is the opportunity price for the last six-month period following harvest

Why do Ontario grain and oilseed producers need RMP? Since MRI was discontinued and CAIS is not working for the grain and oilseed sector, there are no programs in place that protect producers when prices fall. Figure 1 illustrates the shortfall in support received by Ontario producers versus that of their counterparts in the US and Quebec. RMP would level the playing field.

Producers will be able to select one of four levels of support as the example illustrates in Figure 2. Producers must meet the eligibility criteria, enroll annually and pay the premium associated with the support price of his choosing per commodity.

For complete details on the RMP, visit the OCPA website at www.ontariocorn.org/risk.htm or www.farmersfeedcities.com.

Promoting the RMP?
The Farmers Feed Cities! campaign is an umbrella initiative of the Unified Voice designed to increase the profile of agriculture in Ontario and to expand the funding allocated to support our industry from the current 0.7% of the provincial budget back up to the 1.4% of not too many years ago.

The seven grain and oilseed groups in Ontario began intense lobbying of the Province last year. While these efforts are continuing at the Provincial level, the Federal level is also being lobbied. Producers are strongly encouraged to meet with their local MP and MPP as frequently as possible to encourage their support to get the RMP fully funded and implemented. We have success in the fact that both levels of government recognize the hurt in the grain and oilseed sector. What is needed is an immediate monetary commitment from both levels of government.

The seven grain and oilseed groups in Ontario began intense lobbying of the Province last year. While these efforts are continuing at the Provincial level, the Federal level is also being lobbied. Producers are strongly encouraged to meet with their local MP and MPP as frequently as possible to encourage their support to get the RMP fully funded and implemented. We have success in the fact that both levels of government recognize the hurt in the grain and oilseed sector. What is needed is an immediate monetary commitment from both levels of government.

On February 14, there were several events that took place. At Queen's Park the grain and oilseed groups presented the Rural Caucus (figure 3) with some of the Farmers Feed Cities! postcards, a reception was held with the MPPs and several meetings took place with individual MPPs. In addition to the activities of the commodity groups, many producers gathered at a rally (figure 4), organized by a grassroots group, at the Ontario Ministry of Agriculture, Food and Rural Affairs building in Guleph. This same group also held a rally at the Sir John Carling Building, Agriculture and Agri-Food Canada, in Ottawa on February 21.