RMP A REALITY

There have been many occurrences which have impacted the Grains and Oilseeds (G & O) industry over the past two and a half years. To start with, agriculture has experienced changes with its elected leaders at both the federal and provincial levels. Federally, Andy Mitchell was the agriculture minister, who was defeated in the 2006 Canadian election, and was succeeded by Chuck Strahl who has just been replaced by Gerry Ritz. Provincially, Steve Peters was replaced by Leona Dombrowsky, and with the looming 2007 October election, the industry could very well have a new agriculture minister come this fall. Even the senior ranks of the bureaucracy have not been immune to alterations. Dr. Frank Ingratta was replaced by Dr. Bruce Archibald as Deputy Minister of Agriculture, and the OMAFRA senior management team has seen the retirement of key Assistant Deputy Ministers such as Don Taylor and Jim Wheeler.

It has been a timeframe which has been highlighted by the worst farm incomes ever experienced by G & O producers. This message was communicated strongly by farmers who turned out in droves at rallies which occurred at both Queen’s Park and Ottawa. Agriculture is coming to the end of a five year federal/provincial agricultural policy agreement called the Agricultural Policy Framework (APF), which has provided a glimpse of what the replacement for the much debated Canadian Agriculture Income Stabilization (CAIS) program will look like.

In the beginning, it was the initial timeframe in which a farmer committee was struck to develop a new program to deal with factors outside the control of individual producers. A program developed by farmers for farmers; it was later named the Risk Management Program (RMP), and taken to the countryside (two years ago last summer for those of you keeping track) for endorsement.

In a June 8 announcement by Minister Dombrowsky, which revealed the McGuinty government was planning to provide their 40 percent funding match to the $400 million federal cost-ofproduction payment, she also made a commitment to the development of a three year RMP pilot program. In an August 22 announcement at the farm of OCPA director Lloyd Crowe, Premier McGuinty re-affirmed his government’s commitment by officially
launching the program; the program nearly identical to the G & O RMP proposal. The program will begin with the 2007 crop year and farmers are required to enroll for the full three years of the pilot; the farmer premiums being waived in the first year.

There was a lot of information considered, and deliberation which occurred, including past income support programs, which molded into the present day RMP. Program parameters such as the requirement to be enrolled in CAIS and Production Insurance (PI) programs were discussed at length. Support price levels were calculated using the last three years (ie. 2003, 2004, and 2005) of producer data as reported to Canada Revenue Agency (CRA), with resulting averages indexed forward using the Eastern Canada Farm Input Price Index (FIPI). There were other considerations included
as well; for instance, consideration for a professional’s wage was worked into the formula – an area of heavy criticism which is not included in CAIS program calculations. Producer payment caps are always an issue that is difficult to obtain consensus; there are always differing opinions on cap amounts, let alone whether or not there should be any cap in the first place. In the end, the working group felt they delivered the best possible and most responsible program they could and because there is the realization that it is not perfect or unforeseen issues could arise, an advisory committee has been formed to evaluate the program on an on-going basis.

All in all, this is a great announcement for the Ontario economy and the health of a G & O industry which has been left reeling in recent years. Keep in mind that this announcement covers only 40 percent of the cost of the G & O proposed fully funded RMP; following the traditional 60/40 federal/provincial cost sharing formula that occurs with these types of programs, work needs to be done at the federal level to secure the missing funding. The announcement also refers to the RMP as a three year pilot; G & O knows it has to continue to work with government, recognizing
RMP’s worth longer term for the future sustainability of the industry.

There are many people that deserve credit for making RMP a reality. The McGuinty government recognized the G & O industry need; feeling so strongly that it placed its support behind the industry by implementing the RMP prior to the election. OMAFRA and Agricorp have been working tirelessly to deliver the program as flawlessly and quickly as possible this fall. Other stakeholders such as end-users and suppliers also deserve credit for some of their indirect discussions and financial support. Other associations including the general farm organizations have been very supportive during the process. There have been politicians, including rural caucus that have also championed the G & O message. But most of
all, it has been you the producer who has trusted in your G & O representative; respecting and following their guidance and requests, always keeping the G & O ‘ask’ consistent. Most of all, it is your unfaltered support that has made the RMP a reality.

For additional RMP details, please refer to the Safety Nets Semi-Annual Meeting report in the newsletter, visit www.agricorp.com or phone Agricorp at 1-888-247-4999. The intention is to have applications mailed to producers starting the end of September.