Attention Livestock Producers! Important message regarding the Risk Management Program (RMP)

Applications for the new Risk Management Program for livestock producers (including cattle, hogs, veal and sheep) are now available.  The Risk Management Program (RMP) provides financial support to cover losses associated with market prices falling below the below the cost of production. 

The deadline for submitting an application is October 14, 2011.

Every producer of eligible commodities should consider enrolling in RMP as there is no cost to join in the first year (2011) and you are not required to be enrolled in any other government program to apply. 

Starting in 2012, premiums will be required to participate in the program and you will also be required to be enrolled in Agristability.  However, this should not deter you from applying in 2011 as neither of these are requirements in 2011 and there is no penalty should you eventually decide not to participate in 2012. 

Basic Eligibility Requirements:

To be eligible to participate in the livestock RMP you must:

• Produce at least one eligible category of livestock in Ontario (eligible categories are noted below)
• Have ownership of the livestock for the minimum number of days specified for each category.
• Must enrol all your eligible production within a program category.
• Have a valid premises identification number from OnTrace.

Eligible Livestock Categories - Cattle

• Cow-calf (coverage for heifer production up to 500lb, steer production up to 550lb)
• Backgrounder (coverage for heifer production 500lb-850lb, steer production 550lb-900lb)
• Feedlot (coverage for heifer production from 850lb-1400lb, steer production 900lb-1500lb)

Eligible Livestock Categories - Hogs

• Early wean (coverage for production up to 7kg)
• Feeder (coverage for production 7kg to 25kg)
• Grower/finisher (coverage for production 25kg to 159kg)

Eligible Livestock Categories - Veal

• Grain fed (coverage for production 600lb-752lb live weight)
• Milk fed (coverage for production 340lb-675lb live weight)

Eligible Livestock Categories - Sheep

• Lambs (coverage for production 30lb-126lb)

How Payments are Calculated:

Payments are issued for your sold livestock when the average market price for the RMP payment period falls below the support level.  This is called the "payment rate". 

Before October 14, 2011, as part of the application, producers have to list their actual livestock sales numbers between January 2011 and September 2011 and estimated sales for between October 2011 and December 2011.  An interim payment then will be made in December 2011 based on these numbers.

Before January 22, 2012 producers will then have to submit a completed sales report with their actual October to December 2011 sales to receive their final payment.

The payments are calculated as follows:

• Cattle: "payment rate" x total eligible lb. gained by animal sold
• Hogs: "payment rate" x number of hogs sold
• Veal: "payment rate" x number of calves sold
• Sheep: "payment rate" x total eligible lb. gain by animal sold

Please note that the specific values that will be used for "payment rate" are not yet available.  Agricorp promises that these will be published before December 1, 2011.  However, it should be noted that Agricorp will take into consideration yardage (wages) in addition to feed and animal costs when determining the cost of production for the "payment rate".

If you are enrolled in AgriStabiliy, any RMP payments will count as an advance towards part of your AgriStability payment (if eligible).  However, it is still worthwhile to participate in RMP because your payment would be the higher of the AgriStability or RMP amount and there is a higher chance of qualifying for something if you are in both programs.

How to Apply:

You must complete and submit an application to Agricorp by October 14, 2011.

Many livestock producers will have already automatically received an application for the RMP.  If you do not receive an application, please contact Agricorp at 1-877-275-1380.

It is also possible to apply to the program online at the following link: http://www.agricorp.com/en-ca/Programs/RMP/Cattle/Pages/Forms.aspx.

If you have any questions about the RMP program, please contact your Collins Barrow advisor.