2008 Risk Management Program Offers Choice of Coverage Levels



    GUELPH, ON, March 13 /CNW/ - Ontario grain and oilseed producers now have
the option of four coverage levels with corresponding premiums under the 2008
Risk Management Program (RMP). Producers may choose different levels for
different crops and RMP coverage levels are not tied to the coverage levels a
producer can choose under Production Insurance.
    Producers who participated in 2007 will be automatically renewed at
100 percent. Participants who want to reduce their coverage level and
corresponding premium must notify Agricorp by May 1, 2008. Producers who did
not participate in RMP for 2007 may still enrol for 2008. The deadline to
apply is May 1, 2008.
    RMP is a three-year price support program for grain and oilseed producers
to help offset losses caused by low commodity prices. Since December 2007,
Agricorp has issued more than $40 million in RMP payments to more than
10,000 grain and oilseed producers. Agricorp is mailing renewal packages this
week to RMP and Production Insurance (PI) participants.
    Support levels and premium rates for 2008 are posted on Agricorp's
website at www.agricorp.com. More information is available on our website,
www.agricorp.com or by calling Agricorp toll free at 1-888-247-4999.

    
    Disponible en français

                               www.agricorp.com
    



    ----------------
    Backgrounder

    2008 Risk Management Program Offers Choice of Coverage Levels

    Agricorp delivers Production Insurance and AgriStability on behalf of
both the federal and provincial governments. We deliver the Risk Management
Program on behalf of the Government of Ontario. RMP, PI, and AgriStability
work together to create an effective business risk management strategy.
    RMP is a three-year price support program for grain and oilseed producers
to help offset losses caused by low commodity prices. Eligible participants
must grow at least one of the 21 eligible grain and oilseed crops, and enrol
all of their eligible grain and oilseed crops for the 2008 crop year. RMP
payments are triggered when the market price for a grain and oilseed crop
falls below the support level, which is based on the crop's cost of production
and the producer's chosen coverage level. There are two pricing and payment
periods for each crop year: the pre-harvest pricing period(typically paid in
the fall) and the post-harvest pricing period (typically paid in the spring).
    To be eligible for RMP, producers must also participate in Production
Insurance and AgriStability. Production Insurance protects producers from
yield reductions and crop losses caused by adverse weather and other insured
perils. Payments are triggered when the harvested yield is less than the
guaranteed production, based on a producer's historical average farm yield and
chosen coverage level. Producers who grow winter wheat, organic winter wheat,
or organic winter spelt may still apply for PI coverage without winterkill by
calling Agricorp before May 1, 2008.
    Starting with the 2007 program year, the coverage previously provided by
the Canadian Agricultural Income Stabilization (CAIS) program is now available
through two programs: AgriStability and AgriInvest. AgriStability, delivered
by Agricorp, provides coverage when production margins drop to less than
85 percent of reference margins. AgriInvest, delivered by Agriculture and
Agri-Food Canada, replaces the previous CAIS coverage for margin declines of
15 percent or less. Producers who participated in AgriStability in 2007 will
automatically receive AgriStability fee invoices and forms for 2008. To become
a new AgriStability participant for 2008, producers should contact Agricorp
before April 30, 2008.

    
    RMP Timelines

    -   March, 2008 - Agricorp starts to mail balance of 2007 pre-harvest
        payments
    -   April 1, 2008 - Last day to cancel 2008 coverage for RMP and PI
    -   April 30, 2008 - Last day to enrol as new AgriStability participant
        for 2008 and pay 2008 fee without penalty
    -   May 1, 2008 - Last day to change coverage level, apply for new
        coverage, or add the free Unseeded Acreage Benefit (USAB) for RMP and
        PI
    -   May-June, 2008 - Agricorp mails 2007 post-harvest payments
    -   June 30, 2008 - Last day to report acreage for 2008 RMP and PI
    -   July 10, 2008 - Last day to pay premium for 2008 crop year for RMP
        and PI

    Disponible en français

                               www.agricorp.com
    




For further information:

For further information: Betty-Jo Almond, Account Lead, RMP, Agricorp,
(519) 826-6666

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