First RMP Payments Hit Mailboxes by Christmas

Allison Jones, Agricorp

Launched by representatives from industry and the Ontario Federation of Agriculture in August 2007, RMP was designed to offset losses to grain and oilseed producers caused by low commodity prices. Most eligible commodities will trigger two payments for each crop year, typically in the fall and the spring if the market price falls below the support level.The three-year RMP pilot joins Production Insurance (PI) and the Canadian Agricultural Income Stabilization (CAIS) as one more component of an effective business risk management package. For that reason, producers who want to participate in RMP must also participate in both Production Insurance and the CAIS program.

To participate in RMP, producers must:

Agricorp will remain connected with enrolled producers throughout the RMP calendar, providing key information about selecting coverage, reporting acreage,
premiums and payment calculations as it becomes available. 2007 RMP participants will receive a comprehensive renewal package in March 2008 and be automatically enrolled for the 2008 crop year. RMP renewal packages will now feature different coverage levels along with their corresponding premiums.
Since RMP premiums were waived in 2007, all participants received the 100 percent coverage level and paid the corresponding premium amount. For 2008 and 2009, participants will now be able to select their coverage level by crop from one of four coverage levels, and pay the corresponding premium. Market prices to calculate 2008 premiums will be available in April 2008.

Eligible producers who receive post-harvest price period payments in June 2008, which are based on the average of cash or spot market prices for six months during and after harvest, will also notice the linkages between the RMP and CAIS programs. Each producer receives a Notice of Payment with their cheque, providing an explanation of the calculation, as well as any adjustments, amendments, or deductions for CAIS benefits or amounts owing to other provincial
government programs. RMP payments count as an advance on the provincial portion of a producer’s CAIS benefit for the corresponding program year. If a participant’s RMP payment is greater than their CAIS benefit, the participant will keep the difference.

Producers who would like to participate in RMP and did not enroll in 2007 must contact Agricorp by May 1, 2008 to ensure their participation in the remaining two years of the three-year pilot program. Participants can leave RMP at any time without penalty or affecting their eligibility for CAIS or PI. Participants who leave RMP will not be required to repay any previous RMP payments, however they will not be eligible to rejoin the program.

By participating in RMP, PI and CAIS, Ontario’s producers can take full advantage of the protection available from Agricorp’s business risk management programs. Depending on weather and/or market conditions, a producer could receive a CAIS benefit, a PI claim, and/or an RMP payment in a given year..