Risk Management Program Cattle
Ontario's Risk Management Program (RMP) helps producers 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 producers offset losses caused by fluctuating commodity prices and production costs. Participants pay premiums based on their insured production and their chosen coverage level.
Offered by Ontario Agricorp
Amount
No fixed amount
Quick eligibility check
Who can apply
To be eligible you must:
Produce livestock in at least one eligible category in Ontario
Enrol all your eligible production within a livestock category
Pay premium
Have a premises identification number
Have a farm business registration number (or an exemption)
Be able to demonstrate ownership
Be able to demonstrate ownership
For program purposes, ownership means the right of possession of a commodity and their associated risks. Agricorp considers legal ownership, price risk (such as fluctuating market prices or input costs) and production risk (such as mortality or health of the animal) in determining eligibility.
To determine whether you are eligible to enrol your livestock, Agricorp will ask for additional details about your business, including any custom feeding or private financing agreements you may have.
Custom feeding: There are many different types of custom feeding agreements. If you pay another person (e.g. price per pound of weight gain) to feed and house your livestock, Agricorp will need to confirm that you retain exposure to production and price risk before confirming that you are eligible to enrol the livestock.
Private financing: If another person receives legal title of your livestock as collateral for a loan or investment, and you compensate that person through pre-negotiated interest charges, commissions, or fees, you may have the price and production risk. Be sure to disclose the details of your agreement so that Agricorp can determine which person is eligible to enrol the livestock.
To remain eligible for RMP, pay your premium and submit your livestock sales reports by the program deadlines. Even if you had no sales during a reporting period, you must contact Agricorp and report zero sales. Failure to pay your premium or submit a sales report may result in the cancellation of your coverage.
Eligible cattle
All cattle that meet all of the following requirements are eligible.
Must be sold during the program year
Must be produced in Ontario and owned by you for a minimum of 120 consecutive days (this 120-day period can span multiple categories)
Must be 30 months of age or less
Cannot be used for breeding purposes (restriction for the backgrounder and feedlot categories only)
Cannot be enrolled and have sales reported under the RMP plan for veal cattle
Cattle may be enrolled in any of the following three production categories:
Cattle category | Live weights
Steer production | Heifer production
Cow-calf | Up to 550 lb. | Up to 500 lb.
Backgrounder | Over 550 – 900 lb. | Over 500 – 850 lb.
Feedlot | Over 900 – 1,500 lb. | Over 850 – 1,400 lb.
Cattle that fall outside of these weight ranges may still be enrolled; however, payments are based only on the maximum weights listed above. For cow-calf and backgrounder categories, any additional weight gain beyond the maximum will be covered in the next weight category, if you're enrolled.
For the cow-calf category:
Calves must weigh 350 pounds or more at time of sale to be eligible for payment
Calves must be raised from birth to be eligible for payment under the cow-calf category
Calves may be retained for future breeding purposes and still be eligible for payment under the cow-calf category only
About the funding
Ontario's Risk Management Program (RMP) helps producers 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 producers offset losses caused by fluctuating commodity prices and production costs. Participants pay premiums based on their insured production and their chosen coverage level.
Payment rates are based on the difference between the support level and the average market price for the payment calculation period. The support level is based on the target price multiplied by your chosen coverage level (80%, 90%, 95% or 100%). Cattle that fall outside of the eligible weight ranges may still be enrolled; however, payments are based only on the maximum weights listed. The minimum annual premium per cattle category is $25. Premiums can be paid in full or semi-annually upon receipt of invoice. RMP is jointly funded by the Ontario government and producer premiums.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Beef Cattle Financial Protection Program | Insurance | A dealer making a claim in respect of a producer would be eligible to receive 95% of the claim the Board finds valid, with no payout for valid claims of $5K or less and a ceiling of $320K | Open |
| Grain Financial Protection Program | Insurance | No fixed amount | Open |
| AAFC AgriInsurance | Insurance | No fixed amount | Open |
| EDC Performance Security Insurance | Insurance | 100% unconditional, irrevocable, AAA-rated guarantee to your financial institution on letters of guarantee and standby letters of credit | Open |