Risk management program signup slated for change

Wednesday, August 31, 2011

by BETTER FARMING STAFF

Producers can sign up for the Risk Management Program of their choice in 2011 and opt out in 2012, says Ontario’s Minister of Agriculture.

Once they have paid premiums for the 2012 year, however, it’s not so easy.

Sarah Petrevan, press secretary to Carol Mitchell, Ontario Minister of  Agriculture, Food and Rural Affairs, says the commodity groups asked for the option of flexibility in a “transition year.” Once they sign on for 2012, however, they are locked in.

Petrevan lays out the rules as follows: “Once a farmer pays a premium for a commodity (or commodity category), they need to continue to enrol that commodity in subsequent years providing they have production of that commodity. If, they do not have production in a year, they simply have to notify Agricorp that the production is zero for that year - this maintains their eligibility. If they have production and do not enrol, they are deemed ineligible for that current year plus the next two years.”

Mitchell announced the establishment of a market risk insurance program for grains and oilseeds, hogs, cattle, sheep, veal and fruits and vegetables producers in June. During the announcement, she noted that producers could enrol for free in the program in 2011. Beginning in 2012, farmers in most of the commodities covered will have to contribute a premium to the program. The program is administered by Agricorp. BF