Risk Management Program
Ontario's Risk Management Program (RMP) helps farmers manage risks beyond their control, like fluctuating costs and market prices. RMP for livestock was designed in consultation with representatives of the cattle, hog, sheep and veal industry in Ontario. RMP for livestock works like insurance to help Ontario farmers offset losses caused by fluctuating commodity prices and production costs. Participants pay premiums based on their insured production and their chosen coverage level.
Program payments are made if the market prices for sold livestock fall below your support level, which is based on the industry average cost of producing livestock (target price) and the level of coverage you choose. You can choose a coverage level of 80, 90, or 100 per cent.
Payments reflect available funding. An interim payment rate is used to make sure every single farmer has equal access to the funding, whether they trigger a payment at the beginning or end of the program year. The interim payment is based on market prices, support levels at the traditional provincial share of 40 per cent and available RMP funding.