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Risk Management Program Considerations
April 23, 2026
As the deadline for the Risk Management Program approaches on April 30, here are some considerations when deciding whether to renew for 2026/27.
History
The program was designed by grain farmers in 2005 because they were tired of spending thousands of dollars and hundreds of hours each year lobbying government for ad hoc payments. In the past, it took up to 5 years of lobbying to get an ad hoc payment to address income losses that were out of farmers’ control. It was frustrating and time-consuming work and asking for a government handout never sat well with commodity boards. Due to the nature of commodity markets, as soon as an ad hoc payment was made to farmers, the lobbying began for another.
Program Design
RMP was designed to address market price volatility through an insurance approach. Farmers and the government pay in (acknowledging that food sovereignty is vital to Ontario). When the market price falls below the cost of production, a payment is triggered. If a payment is not triggered, the money remains in the program until a year when prices fall. The government contribution is the same each year and is banked for a future year if not spent in the current production year.
This eliminates the need to endlessly lobby for a government handout in years of high market volatility and allows premiums from farmers and government to be held in good years for future years of low prices.
Why You Should Consider Staying in RMP in 2026/27
RMP should be considered on a longer time horizon than one year. You will get your premium back, just not necessarily in the year you pay it. You will get your premium back and much more when market prices fall below the cost of production and there is money banked. Producer premiums and the government contribution are being banked right now in an account only for sheep producers, so there will be more money available for future program payments when they are needed.
However, if you exit the program, you won’t get your premiums back. When you opt out, you are out for the current year and 2 more years before being able to enroll in the program again.
Your 2025 premium will remain in the sheep account and will be used to pay program participants when the market price falls below the cost of production in the future – even if you aren’t enrolled when that happens.
If you are concerned with the cost of the premium for this year but want to remain in the program, consider choosing the lowest coverage level to reduce your investment this year. Please note that if you choose the lowest coverage level, you will also have a reduced program payment if market prices fall below the cost of production.