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25-07 - Risk Management Program (RMP)
The BFO Board of Directors agrees that Ontario’s Risk Management Program (RMP) is a highly effective tool to mitigate risk within the beef sector, which will help keep the industry financially sustainable into the future.
On January 28, 2025, the Ontario government announced it is increasing annual funding for RMP from $150 million to $250 million to enhance support for farmers and the province’s $51 billion agri-food sector. The $100 million increase will support farmers in responding to market challenges while boosting their long-term business confidence and competitiveness.
The $100 million increase will be phased in over three years, starting with a $30 million increase for the 2025 program year, leading to an annual total of $250 million by the 2027 program year. This investment builds on the $50 million annual increase to RMP in 2020 to $150 million and reforms that allowed unused program funds to be rolled over to future year claims, ensuring the program is responsive in times of greatest need.
BFO and other commodity groups in the Ontario Agriculture Sustainable Coalition (OASC) have been lobbying on behalf of its members and very much welcomed the announcement, thanking the government for their continued commitment and investment into RMP.
The RMP request has been our top lobby priority for a number of years and was discussed routinely at meetings with MPPs. BFO understands the need to continue to ensure the government maintains its promise outlined in the January 28, 2025, announcement and showcases to the government why there is value within RMP for taxpayers, government and Ontario farmers.
The current Canada-United States trade environment has created much uncertainty and volatility in the market that programs like RMP likely cannot effectively respond to, even with the recent increase in program spending. As a result, BFO has recommended the provincial government consider several changes to RMP to be used as a vehicle to respond to the current trade war and risks in the market. Those recommendations include:
- That the province considers temporarily uncapping the RMP and freezing producer premiums.
- That the RMP operational cap, which has been set at $1.2 million, be increased to $3 million to account for inflation, the rise in commodity prices since the program’s inception, and the potential for large payments to be triggered as a result of significant market losses.
- That producers not enrolled in RMP and those who have left the program and are currently ineligible for re-enrolling be permitted to re-enroll in RMP without penalty.
- That Ontario pushes for federal contributions to premiums and/or administration support to deliver the RMP program.
Be assured that BFO will continue to make the Ontario government aware of the necessity of RMP, the benefits it provides to the Ontario economy, and the value the program has to producers across the province when it comes to risk mitigation.