By the end of May, Ontario producers participating in the Self-Directed Risk Management (SDRM) Program for Edible Horticulture will have received their second government contribution for the 2017 program year. Producers who already requested a withdrawal for the full amount of their account for 2017 automatically received the additional funds that were added to their account.
Those producers who requested a partial withdrawal or who have not yet requested a withdrawal can find a withdrawal request form on www.agricorp.com and submit to Agricorp by mail or fax. If you are not sure if you have funds to withdraw from your SDRM account, you are encouraged to contact Agricorp.
Producers who have made a deposit can withdraw funds to cover a reduction in income, an investment in risk management tools, or other expenses or losses related to your farm operation.
Producers are reminded that government contributions for SDRM are taxable when they are deposited, not when they are withdrawn. Funds left in SDRM accounts from this year or previous years do not earn interest; therefore, it is more beneficial to withdraw the funds so they can be put to use.
It is important to note that the timing of when funds are taxed for SDRM is different than AgriInvest, where funds are taxable upon withdrawal.
As a final note, by now most eligible producers will also have received their payment from the Edible Horticulture Support Program (EHSP). The EHSP is a $60 million program developed by the Ontario government to recognize additional production costs being faced by producers. The program uses SDRM to identify eligible producers and payment amounts. Half of the program payments are delivered this year, while the remaining funds will be paid to producers in 2019.