The Ontario Agriculture Sustainability Coalition has released a new study that examines the economic impact that Ontario’s Risk Management Program (RMP) and Self-Directed Risk Management Programs (SDRM) has on Ontario farms, farm production and the broader Ontario economy.
Highlights of the study include:
- Every dollar spent on RMP/SDRM leads to $2.01 - $3.60 return on investment. In 2020, this led to an increase in economic output of between $282.6 million and $506.2 million.
- RMP/SDRM helps support more than 47,000 full-time, part-time, and seasonal jobs.
- More than 95 per cent of participating farmers agree that not having access to this program would negatively impact their farm operations.
- RMP/SDRM support allows farmers to mitigate input cost volatility, and enables many participating farmers to increase their investments in innovation, equipment and labour.
- On average for the 2016 - 2020 years, program funding only covered 40.4% of calculated insurance benefits for participating farmers due to the current funding cap.
- RMP/SDRM is viewed by participating farmers as a particularly important risk management tool for young and beginning farmers, and assists farmers in obtaining financial services from private lenders.
“The RMP/SDRM program is critical for Ontario growers who are facing a challenging operating environment where input costs are increasing faster than price increases for produce sold. Programs such as RMP/SDRM help ensure a stable and reliable domestic food supply for Ontarians but funding needs to keep pace with current needs,” says vegetable grower and OASC vice-chair, Mike Chromczak.
The coalition is comprised of representatives from the beef, fruit and vegetable, grain, pork, sheep and veal sectors. For the full report, link here: https://bit.ly/3T9W1PU
Source: Ontario Agriculture Sustainability Coalition October 31, 2022 news release