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Provincial Investment in RMP Strengthens Ontario’s Beef Sector
January 28, 2025
The Beef Farmers of Ontario (BFO) and its members are thrilled to learn of the Government of Ontario’s decision to increase their annual investment in the Ontario Risk Management Program (RMP) by $100 million. The announcement, to raise the provincial investment from $150 million to $250 million, which will be phased in over three years, was made this morning by Rob Flack, Ontario’s Minister of Agriculture, Food and Agribusiness at a farm in Elgin County, and reflects a request that BFO and its allied members of the Ontario Agriculture Sustainability Coalition (OASC) have been promoting for several years.
Designed as a partnership between the province and farmers who are not protected by the supply management system, RMP is a cost-shared insurance program that helps stabilize the grains, horticulture and livestock sectors by providing insurance for farmers against market volatility and production risks. Ontario farmers who are enrolled in the program, contribute 35 per cent of the costs through annual insurance premiums.
“This is one of the most important investments the province could make for our sector,” shares Craig McLaughlin, BFO President. “As beef farmers, we’re facing inflation and higher costs of production associated with raising livestock, fluctuating weather patterns and trade uncertainties, all of which, go far beyond what we can mitigate through good management practices alone. As an association, we’ve remained steadfast in our position that the best remedy for these risks, and to help sustain our beef production and grow our economic output as a province, is to increase Ontario’s investment in the RMP.”
“Growing input costs and increasing uncertainty and risk in the marketplace really underpins the critical importance of having well-funded insurance programs like RMP,” explains Richard Horne, BFO Executive Director. “Minister Rob Flack has been an absolute champion of this request from day one. We would be remiss if we didn’t also acknowledge the groundwork laid by Minister Lisa Thompson and former Minister Ernie Hardeman for their recognition and support of the value this program provides to farmers and Ontario’s economy.”
For several years, Ontario farmers, represented by the non-supply managed commodities and through the work of OASC, have been unified in their request for the province to increase its investment in RMP by raising the program cap from $150 million to $250 million annually to ensure farmers have the tools to manage today’s food production risks.
BFO would like to thank Premier Ford, Minister Bethlenfalvy, Minister Flack and all Members of Provincial Parliament and staff who have advocated for and supported the need for increased investment for this critically important program for farmers and our food producing sectors.
“We have 100 million reasons to smile today,” elates McLaughlin.
BACKGROUND
Ontario’s Risk Management Program was first launched in 2011 as a fully-funded cost-share program between the provincial government and farmers. In 2013, the Ontario government capped the provincial contribution to the program at $100 million annually. In 2020, the Ontario government increased its contribution by $50 million, bringing the total to $150 million.
The program is administered by Agricorp. Visit agricorp.com to learn more.
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For the full BFO release, click here.
Ontario Agriculture Sustainability Coalition Applauds Additional Support for Farmers
The Ontario Agriculture Sustainability Coalition (OASC) welcomes today’s announcement from Rob Flack, Minister of Agriculture, Food and Agribusiness (OMAFA); Peter Bethlenfalvy, Minister of Finance; and John Jordan, Parliamentary Assistant to the Minister of Agriculture, Food and Agribusiness, to provide an additional $100 million investment into Ontario’s Risk Management Program (RMP) and the Self-Directed Risk Management Program (SDRM). The increase will be phased in over three years, starting with a $30 million increase in 2025.
The OASC, comprised of the Beef Farmers of Ontario, Ontario Pork, Ontario Sheep Farmers, Grain Farmers of Ontario, Veal Farmers of Ontario, and the Ontario Fruit & Vegetable Growers’ Association, represents the interests of approximately 50,000 non-supply managed farmers in Ontario that provide the foundation for the province’s multi-billion-dollar agri-food sector and contributes $51 billion to the province’s annual GDP.
The RMP and SDRM are cost-shared insurance programs designed to provide stability to Ontario’s farms through partial financial protection against downturns in commodity markets and factors outside of farmers’ control. The programs benefit both farmers and the province, including economic benefits such as added jobs and economic activity within the broader agri-food value chain, and the protection of Ontario’s high quality, safe and affordable domestic food supply.
Having a strong RMP and SDRM to help farmers weather the effects of potential market disruptions is crucial, and today’s announcement will provide much-needed support for this vital program.
OASC commends the Government of Ontario for its acknowledgement of the significant contributions that the agri-food sector makes to Ontario’s economy, and for their ongoing efforts to ensure that Ontario farmers have the necessary supports in place.
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For the full OASC release, click here.
GOVERNMENT OF ONTARIO NEWS RELEASE
Ontario Increasing Support for Farmers
The Ontario government is increasing annual funding for its Risk Management Program (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.
“Our government promised farmers we would continue to expand and enhance RMP, and with this historic investment, we have delivered,” said Rob Flack, Minister of Agriculture, Food and Agribusiness. “To Ontario’s world-class farmers, know that our government remains focused on strengthening your resilience and competitiveness, no matter what headwinds may come our way.”
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.
“Ontario farmers work tirelessly to feed our growing province, and they deserve a government that protects them and their industry against economic uncertainty,” said Peter Bethlenfalvy, Minister of Finance. “This investment will not only continue to support hundreds of thousands of jobs and billions in economic activity, it will also help ensure the continued growth of Ontario’s thriving agri-food sector for generations.”
This investment builds on the $50 million annual increase to RMP in 2020 to $150 million, and past reforms which allowed unused program funds to be rolled over to future year claims, allowing the program to be most responsive in times of greatest need. This also builds on the 2023 changes to the compensation rates for AgriStability which were increased from 70 per cent to 80 per cent, a change that Ontario led the fight on at the federal level to better serve farms facing significant margin declines due to production losses as part of the national suite of Business Risk Management programming.
RMP supports over 383,000 jobs and $24 billion throughout Ontario’s agri-food supply chain across 8,500 farms which produce cattle, hogs, sheep, veal, grains and oilseeds, as well as edible horticulture through the Self-Directed Risk Management stream.
For the full Government of Ontario release, click here.