By Mike Renzella
The Haldimand Press
One of the realities of farming is uncertainty. While the best farmers know how to prepare for nearly any situation – from soil management to pest control to harvesting techniques – even with all the prep in the world, things can still go wrong. Factors beyond a farmer’s control can have serious impacts on the bottom line at the end of the day.
To learn more about some of the risk programs available to farmers, The Haldimand Press reached out to the Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA), who works with Agricorp to deliver a Business Risk Management program designed to help farmers in such situations.
Shelley Kraft, Team Leader of Communications for Agricorp, touched on some of the ways the program is designed to help: “Our staff is ready to answer questions and can walk farmers through all their coverage options and the claims process based on each individual situation on their farm and in their fields, all the way through to harvest and claims…. Farmers who have damage and haven’t spoken with Agricorp yet should contact us as soon as possible.”
She laid out the different facets of the program, including:
AgriStability
This program provides whole farm coverage to help cover large declines in net income. If a farmer’s margin falls below 70% of their recent average, due to production loss, increased costs, or market conditions, AgriStability helps to offset the difference. AgriStability also includes an option for interim payments, which farmers can apply for if they are in financial distress and have completed six months of their fiscal year.
Production Insurance
This option covers production losses and yield reductions caused by factors beyond their control, including adverse weather, disease, pests, wildlife, or other uncontrollable natural perils. Depending on the plan, coverage is available on a total-yield or acreage-loss basis. Producers can choose the type and level of coverage that best meets their needs. Farmers have production loss coverage for when they harvest. Production loss claims are paid if their final yield falls below their guarantee.
Production Insurance
This insurance can also help cover unplanned costs during planting. The program includes built-in coverage for eligible producers to cover different situations they could face during the planting season, including replanting coverage or unseeded acreage coverage.
Ontario’s Risk Management Program
RMP helps farmers manage risks beyond their control, like fluctuating costs and market prices. The program is available for the cattle, edible horticulture, grains and oilseeds, hog, sheep, and veal sectors.
AgriInvest
This is a savings account that producers can use to either cover small income declines or support other investments. Each year, producers can deposit up to 1% of their Allowable Net Sales into a bank account and receive a matching government contribution. Producers can withdraw funds at any time. In Ontario, AgriInvest is delivered by Agriculture and Agri-Food Canada.
“Farmers face multiple perils, such as extreme weather, from excessively dry to excessively wet, along with storms, including hail, freezing rain, and tornadoes. Insects, market fluctuations, and more…. The programs Agricorp delivers are designed to help,” said Kraft. “For example, Production Insurance covers specific insured perils, which include adverse weather, disease, and more. Farmers can find details in the contract of insurance, which is posted by crop at agricorp.com. The website also lists participant responsibilities under each program and shows how payments are triggered and calculated.”
Kraft pointed out however, that even farmers with program coverage remain responsible for following good farm management practices, as defined by OMAFRA.
For more information on some of the program options, and how to access them, visit agricorp.com, or visit Canada’s Outdoor Farm Show in Woodstock, where they will be attending from September 13-15.
