GFO awards province for RMP enhancement

Grain Farmers of Ontario recently awarded Ontario Ministry of Agriculture, Food and Rural Affairs Minister Lisa Thompson and the Ontario government with the Grain Farmers of Ontario Gloves of Gratitude at Queen’s Park.

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The GFO said in a release it presented the award to extend its appreciation for the provincial government’s support of grain and oilseed farmers across the province with the Risk Management Program (RMP). The award features a set of work gloves, which the GFO said represents “the hard work and dedication of Ontario farmers and the government to ensure that Ontario has a thriving grain and oilseed sector.”    

The 2023 growing season was the first time that the enhanced design of the Ontario RMP, put in place by the Ontario government in 2020, was put to the test for Ontario grain and oilseed farmers. The GFO said results show that the program worked well to respond to market conditions faced by farmers, which saw market prices fall below the cost of production.

“Grain Farmers of Ontario is pleased to see the new RMP work for Ontario grain and oilseed farmers when they need support. Managing market volatility risks covered by the Ontario RMP is vital for Ontario’s grain farming sector,” says Crosby Devitt, CEO, Grain Farmers of Ontario.

“For the RMP to continue to be a successful risk mitigation tool for farmers in the future, the program must keep up with the growing needs of the sector. The Grain Farmers of Ontario remains committed to working with the Government to ensure viable funding so that farmers have the support they need when they need it,” adds Devitt.

The Ontario RMP is co-funded by farmers and the Ontario government. Its unique design can help offset losses grain farmers experience during a growing season when international events beyond a farmer’s control create volatility, resulting in low commodity prices and high production costs. Farmers only receive an RMP payment when the crop’s cost of production exceeds the price they expect the market to pay at harvest. Depending on the coverage level selected, they can receive up to 40 per cent of the difference between the target and market price.