InsuranceOntarioWorking Capital

Risk Management Program Hogs

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

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
No requirement stated
Location
Ontario

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 hogs

All hogs that meet all of the following requirements are eligible.

Must be sold during the program year

Must not be enrolled in the same category more than once

Must be produced and owned by you in Ontario for a minimum length of time as shown below

Grower/finisher hogs must be sold for slaughter to be eligible for payment in the grower/finisher category

Must not have been bred*

  • Hogs may be sold for future breeding purposes and still be eligible for coverage under the early wean and feeder categories only. For more information, refer to "Off-type animals" below.

Hogs may be enrolled in any of the following three weight categories.

Hog category | Live weights

Weight range | Minimum ownership3

Early wean | Up to 7 kg | A minimum of 15 days

Feeder | Up to 25 kg1 | A minimum of 35 days

Grower/finisher | Over 25 kg up to 159 kg2 | A minimum of 70 days

Notes:

Also includes off-type animals (e.g., barbecue pigs sold between 25 kilograms and 87.5 kilograms live weight and breeding hogs sold above 25 kilograms).

Hogs must weigh at least 87.5 kilograms to be eligible for payment in the grower/finisher category, but payment is based on eligible weight gain starting from 25 kilograms.

Ownership requirements are cumulative. For a farrow to finish operation, you must own the hogs for 120 days to be eligible under all three categories (15 + 35 + 70 = 120).

Hogs sold outside of these weight ranges may still be enrolled; however, payments are based only on the maximum weights listed above. If a hog is sold above the maximum weight range for a category, the animal remains eligible for payment under that category, provided it meets all other eligibility criteria.

Off-type animals

Off-type animals include breeding hogs over 25 kilograms and hogs sold for barbecue between 25 and 87.5 kilograms live weight. These animals are treated as feeders for the purpose of your sales reporting and payment calculation.

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.

RMP is jointly funded by the Ontario government and producer premiums.

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 industry average cost of production multiplied by your chosen coverage level (80%, 90%, 95% or 100%). Grower/finisher hogs must weigh at least 87.5 kilograms to be eligible for payment, but payment is based on eligible weight gain starting from 25 kilograms. The minimum annual premium per hog category is $25.

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