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
Comments
Sarah Petrevan, press secretary to Carol Mitchell announced that farmers that don't enroll will be ineligible for RMP for 3 years.
That is NOT in the handbook. That is nowhere in print.
Farmers agree to what is written in the handbook.
It is easy to make those kind of verbal statements but if it isn't written as part of the program, then it is not deemed to be officially part of the program.
Is Agricorp changing the rules just as the games begin?
The OFA has been ranting that RMP is the best thing since sliced bread yet they have kept a closed lid on important details about the program.
Not once did I hear that RMP is a permanent program from that bunch.
What other details are they holding back from us?
Now that the rules have changed, how many farmers have signed on already not knowing they will be "locked in" forever.
The OFA did the same thing on the original RMP. We all knew what it was supposed to look like, but once it went behind closed doors the OFA undermined much of the way it could have worked. I think programming is a good first start, but we have to fix the system so we can actually make a living from the marketplace and that goes quite a way beyond RMP.
Where do you start to fix an Ontario system with greedy farmers, civil servants and politicians who all want entitlement for their babyboomer generation
When was the last time we had Ministers of Agriculture or what ever, who had knowledge and ran their ministry with a good degree of non political common sense backed by a cabinet with vision and not what is good for the party? When is the ordinary farmer going to understand the situation we have with
Comment modified by editors
We already knew that everybody was going to sign up for RMP in 2011, and nobody in 2012 - this detail just confirms it.
But, however, if they decide to eliminate the AgriStability clawback of RMP, and/or the non-refundability of RMP premiums when this clawback occurs, this would be a better reason to sign up in 2012, but even if that happens, the economics of RMP still remain flawed enough to discourage most people from signing up.
More to the point, by this time next year, I suspect most lending institutions won't be prepared to loan money for RMP premiums anyway.
Stephen Thompson, Clinton, ON
More to the point, by this time next year, I suspect most lending institutions won't be prepared to loan money for RMP premiums anyway.
why should banks lone money for rmp, it is now a screwed up program and will be blamed on farmers design of it
Every day farmers are being used by farm leaders, farm organization staff and OMAFRA civil servants.
There needs to be an investigation to clean house.
I looked for the section that should explain about any opt option and once opted out, not being able to get back into program for 3 years.
I can't find it in the book. It was in the older version of RMP but that part is missing in the New RMP.
Its not officially part of the new program.
Where did Petrevan get her information?
Comment modified by editors
The 2011 RMP Handbook explains everything anyone needs to know about the 2011 program - the opt-in and/or opt-out provision doesn't apply until 2012, and, therefore, doesn't need to even be mentioned until the 2012 Handbook is prepared.
It's times like this I feel sorry for the people at Agricorp - there's no way they could have made the 2011 RMP program easier to understand, yet farmers seem to be, as usual, far-too paranoid for their own good.
Stephen Thompson, Clinton, ON
Mr, Thompson. It is times like this that I feel sorry for farmers that do not seek proper legal advice concerning Provincial programs.
The 2011 RMP handbook clearly spells out the terms and conditions of the program of which the contract confirms that each party shall comply.
The only opt-out options indicated in the handbook deals with death, bankruptcy, convicted fraud and dissolution of business.
Once signed on, the farmer agrees to be part of a permanent program which indicates rule changes in 2012.
The NEW 2011 RMP has many of the same qualities of the previous program but essential elements have been eliminated namely the opting out clauses.
Farmers should pay close attention to the situation at the London Hospitals whereby an audit found $800,000.00 was not properly appropriated. The hospital administrator told the auditors that the hospital was assured verbally that the money could be retained.
The written conditions are taking precedent over verbal assurances.
Sarah Petrevan is verbally advising that farmers have a "transition" year and have an option not be part of 2012 RMP.
That option is not written in the handbook.
Who will sign a permanent program with only verbal assurances of opt-out options?
Who would sign a contract that details conditions of the contract will change and that the Government has "absolute discretion to refuse or withhold any payments to any participant."
Those are very broad conditions.
What part about the 2011 RMP being a stand-alone program (with the exception of the AgriStability claw-back provision) do you not understand?
There's nothing in the 2011 RMP Handbook which mentions anything about either "permanency" or "opting-out" because there doesn't need to be any mention - that doesn't happen until 2012.
There's ABSOLUTELY NO MENTION ANYWHERE IN THE 2011 HANDBOOK that signing up for 2011 requires participation in the 2012 RMP program - I was specifically looking for that linkage, and if I can't find it, it doesn't exist, and therefore, it doesn't matter.
It was, I suggest, entirely because of the overwhelming paranoia of the farm community about this complete "red-herrring" issue, that Ms. Petrevan even addressed the issue in the first place.
I really wish the farm community would stop being so paranoid about issues that don't matter, and start dealing with issues, like the AgriStability claw-back, which do matter.
Stephen Thompson, Clinton ON
What Ms. Petrevan also failed to mention is that the $150,000,000 announced in the budget is not accurate. The payment this fall is $100,000,000. Still very significant, but very misleading. And all commodity organisations have known about this for months, yet none of them are willing to take the minister to task on the $50,000,000 difference.
You forget the $80,000 RMP monies that Dromboski gave back to the Province just before she moved from Agriculture. She said the farmers didn't use it so they didn't need it.
I called Agricorp today to inquire about opt out provisions for future years. This is an important part of the package for us in deciding whether to sign up in 2011 (a year in which payouts are pretty unlikely in the grains and oilseeds section). Here is our situation: we are currently not enrolled in the program, but wondered if we should be for our premium free 2011 year. However, apparently it is not yet completely clarified what the rules will be for opting out in 2012, but at this time what they advised me was if we enroll in 2011, then opt out in 2012, we would not be allowed back in for 2012 and subsequent 2 years.
Based on this information, I believe it is better for us (based on the commodity prices) to stay out of the program for 2011, and then make a decision in 2012 as to whether or not to enroll.
That is good to know and I like your reasoning.
But I have another question for you.
You say you are not currently enrolled.
There is a provision in the New RMP that says that if your were enrolled in the 2010 RMP, you are automatically enrolled into the 2011 RMP unless you call Agricorp to opt out.
So the question now is- If you were enrolled in 2010 and choose to opt-out of 2011, does that mean you are out the program for 2 more years? Or does the new rules for opt-out start in 2012?
6 more days sign up time for Ontario grain RMP 2011 . It will tell us how succesful the designers of the program are and how much crowing the liberals can do for the provincial election
The public, farmers accountants and lawyers will be able to judge the grain farmer acceptance of of the rmp program.
The RMP idea was hatched in 2002-3 and is a long time getting this far.
Post new comment