This week, the provincial government announced it was increasing annual funding for its Risk Management Program (RMP) from $150 million to $250 million annually.
The RMP for beef, pork, sheep, veal and grain farmers and the Self-Directed Risk Management Program (SDRM) for fruit and vegetable growers help provide financial protection for farmers against unprecedented challenges beyond their control, including inflation, supply chain disruptions, market downturns and climate risks.
The $100 million increase will be phased in over a three-year period, starting with a $30 million increase for the 2025 program year, leading to an annual total of $250 million by the 2027 program year. Producer premiums will remain at 35 per cent of government funding, and the current phase-in of this will continue.
Increased funding for risk management has long been a key advocacy priority for the OFA, and it was one of the organization’s top three budget asks of the provincial government for 2025. This ask supports the efforts by the Ontario Agriculture Sustainability Coalition (OASC), who have long been urging the province to enhance its investment into RMP and SDRM.
OASC members include Beef Farmers of Ontario, Ontario Pork, Ontario Sheep Farmers, Veal Farmers of Ontario, Ontario Fruit & Vegetable Growers’ Association and Grain Farmers of Ontario. This is the first increase in the program since successful industry advocacy efforts helped secure a $50 million increase from $100 million to $150 million in 2020.
Background
The Ontario Risk Management Program (RMP) was launched in 2007 as a pilot program to provide a safety net against risks beyond farmers’ control. It was made permanent in 2011, offering vital financial stability to producers dealing with fluctuating market prices and rising production costs.
The critical role of RMP
Ontario farmers operate in an uncertain environment, with volatile commodity prices, high input costs, climate-related risks, rising farm debts and a volatile trade environment. RMP helps ensure the economic sustainability of farming businesses, allowing producers to manage risks and continue providing food, fuel, fibre and flowers for Ontarians, Canadians and the world. The program’s ability to stabilize farm income is vital to preserving the livelihoods Ontario farmers.
What farmers need to know about RMP
RMP provides tailored financial support to livestock, grains and oilseed, and horticulture producers:
- Livestock: payments are based on the average cost of production multiplied by the producer’s chosen coverage level. Payments are made semi-annually for cow-calf producers and three times annually for others.
- Grains and oilseeds: payments depend on the Average Farm Yield, acreage, and chosen coverage level. Producers receive pre-harvest payments in November and post-harvest payments the following spring.
- Horticulture: producers can participate through SDRM accounts, where they deposit funds that are matched by the government based on Allowable Net Sales (ANS). Withdrawals are untaxed and can be made anytime.
Eligibility: Producers of eligible commodities registered with Agricorp can participate. The annual funding cap ensures broad program access.
Enrollment: Interested producers can apply through Agricorp by submitting the necessary documentation.
Additional resources
OFA: Ontario farmers appreciate risk management program funding increase
https://ofa.on.ca/newsroom/ontario-farmers-appreciate-risk-management-program-funding-increase/
Beef Farmers of Ontario: Provincial investment in the risk management program strengthens Ontario’s beef sector
https://www.ontariobeef.com/communications/news-media/provincial-investment-in-the-risk-management-program-strengthens-ontario-s-beef-sector/
Veal Farmers of Ontario: VFO applauds the milestone announcement made by the province of Ontario that will see an increase in the province’s investment into the Ontario Risk Management Program
https://vealfarmers.ca/news/veal-farmers-of-ontario-vfo-applauds-the-milestone-announcement-made-by-the-province-of-ontario-that-will-see-an-increase-in-the-provinces-investment-into-the-ontario-risk-management-progra/
Ontario Fruit & Vegetable Growers’ Association: Fruit and vegetable growers welcome historic boost to risk management program
https://www.ofvga.org/news-releases/fruit-and-vegetable-growers-welcome-historic-boost-to-risk-management-program
Ontario Sheep Farmers: Ontario sheep farmers say thank you
https://www.ontariosheep.org/media/2vxjheeq/rmp-announcement_2025_january-28.pdf
Grain Farmers of Ontario: Grain Farmers of Ontario congratulates Ontario government for new investment in Ontario Risk Management Program
https://gfo.ca/news-releases/grain-farmers-of-ontario-congratulates-ontario-government-for-new-investment-in-ontario-risk-management-program/
January 2025 OFA submission to Finance Minister Bethlenfalvy regarding 2025 budget
November 2024 OFA Viewpoint by Sara Wood https://ofa.on.ca/newsroom/managing-farming-risks-in-challenging-times/
January 18, 2024 – OFA submission to Finance Minister Bethlenfalvy regarding Ontario’s 2024 pre-budget consultations
February 8, 2023 – OFA submission to Finance Minister Bethlenfalvy regarding Ontario’s 2023 pre-budget consultations
February 11, 2022 – OFA submission to Ministry of Finance regarding Ontario’s 2022 pre-budget consultations
Ontario Agriculture Sustainability Coalition
Measuring the impact of RMP/SDRM on Ontario farmers and the economy
More information
For more information or enrol, visit Agricorp’s website or call them at 1-888-247-4999 for more information, or contact OFA for assistance.