Ontario pledges $100 million increase to Risk Management Program

The Risk Management Program (RMP) is getting a $100 million boost over three years from the Ontario government.

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“Our government promised farmers we would continue to expand and enhance RMP, and with this historic investment, we have delivered,” said Rob Black, Minister of Agriculture Food and Agribusiness at VanQuaethem Farms Ltd. in Eden, Ont., January 28.

Why it matters: The increase will support farmers responding to market challenges while boosting confidence and competitiveness.

The increase will be phased in over three years, with $30 million added in the 2025 program year until the program reaches a total of $250 million in the 2027 program year, with producer premiums remaining at 35 per cent of government funding. It builds on reforms allowing unused program funds to be rolled over for future years’ claims, the $50 million annual increase to RMP in 2020 and AgriStability’s increase from 70 to 80 per cent compensation rates in 2023, making the program more responsive in times of need.

Minister of Finance Peter Bethlenfalvy said Ontario farmers work tirelessly to feed the province, and the government must protect them against economic uncertainty and support the hundreds of thousands of jobs and billions of dollars in economic activity the sector generates.

“It will also help ensure the continued growth of Ontario’s thriving agri-food sector for generations,” he said.

Commodities who have lobbied extensively for the RMP increase saw the announcement, made hours before an expected early election call, as a hard-fought win.

“(The RMP investment) could not come at a better time, given the uncertainty and escalating risks facing farm operations,” said Craig McLaughlin, president of Beef Farmers of Ontario. “This is, without a doubt, the most important investment the province could make for our sector and one that will serve to support the security of Ontario farms and Ontario food production for many years.”

Ontario Sheep Farmers chair Art Alblas said the impact of RMP investment in the sheep industry is evident.

“Lamb production enrolled in this program has doubled since 2020 and continues to increase,” Alblas said. “(This investment) will support current and new sheep farmers as we expand production to meet the growing demand for lamb in Ontario.”

More information to come.