By Jeff Helsdon
The Ontario government announced a substantial Risk Management Program increase at a Eden farm last Tuesday.
Elgin-Middlesex-London MPP and Minister of Agriculture, Food and Agribusiness Rob Flack was on his home turf for the announcement in Bayham just a day before Premier Ford dissolved the Legislature for an early election. Flack was joined by Minister of Finance Peter Bethlenfalvy and farm leaders for the announcement at the VanQuathem farm.
The Risk Management Program (RMP)is a safety net that helps offset rising production costs and falling commodity prices. Payments are made if the market price falls below the cost of production. RMP covers sectors such as grain and oilseeds, cattle, horticulture, sheep, veal, and pork but does not include supply-managed commodities such as dairy and chickens.
The announcement boosts RMP from $150 million to $250 million over the next three years.
Flack told those in attendance for the announcement that the government understands the importance of the $51 billion agri-food sector to the province’s economy. This includes more than 200 commodities, livestock and poultry. From farm gate to plate, 871,000 people, or one in nine jobs, are in the agri-food sector.
“Our farmers are the lifeblood of our growing, our vibrant, our thriving agri-food sector,” he said.
Since 2018, the number of people employed in agriculture grew by 30,000, the gross domestic product increased by $3 billion and exports increased 65 per cent to $26.2 billion. Expanding on trade with the U.S., Flack said the two-way trade, which he called “dynamic and complementary”, is worth $45 billion. In the agriculture sector, Ontario has a small trade deficit with the States.
“The bottom line is there is no need for President Trump to add tariffs to our sector,” he said. “Tariffs will only increase costs, cause potential job losses, and inflict consumer pain that is not needed.”
He told the farmers if tariffs were implemented, the Ontario government “has your backs”.
“Today’s announcement moves the needle in providing more confidence in our fast-moving sector, and we want to keep it that way,” Flack said.
Ontario Federation of Agriculture president Drew Spoelstra said farmers need reliable safety net programs to offset growing tax burdens and increasing production costs.
“We also face significant challenges that are out of our control when it comes to market conditions, trade tariffs, and we might be facing down our bigger challenge yet,” he said.
While Ontario farmers are adaptable and resilient, he added, “Farmers can only do so much and need reliable and effective safety net programs, like Ontario RMP, and others to stand behind our efforts to feed Ontarians, and others, around the world.”
Mike Chromczak, a local cash crop and vegetable producer, is also the co-chair of the Ontario Agriculture Sustainability Coalition. This group has representation from the commodity groups eligible for RMP.
“Today’s announcement is a monumental investment by our government that will help to fortify our domestic food supply, support jobs, economic growth while strengthening the resiliency of our respective sectors,” he said.
Haldimand-Norfolk MPP Bobbi Ann Brady said she has long been pressing the government for such an increase to RMP, and while she said it was good news, she questioned the timing.
“This government has had until 2022 to boost RMP and they wait until the day before an election call,” Brady said. “Thank you for the $100 million, but it’s long overdue.”
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