Minister's Order: Risk Management Program [0006/2021]

Whereas the agriculture, agri-food and agri-based products sector provides an important economic and social contribution within Ontario;

And whereas the Government of Ontario established the Program pursuant to the Previous OIC to assist farm businesses in mitigating the inherent risks associated with farming;

And whereas the Minister continued the Program pursuant to the Previous MO, as well as made enhancements to the Program, such as providing farm businesses participating in the Program with an opportunity to request the BRMRC review decisions made under the Program;

And whereas in May of 2019, the Minister requested industry groups work toward transitioning the Program toward an insurance-like design with the objective of having funds available to Participants when they are needed most;

And whereas section 4 of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister with the authority in relation to the administration of laws relating to agriculture, food and rural affairs and all their branches;

And whereas section 6.2 of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister with the authority to establish programs for the encouragement of agriculture, food and rural affairs within Ontario;

And whereas sections 49 and 54 of the Legislation Act, 2006 has the effect of providing the Minister with the power to amend, revoke or replace from time to time an order establishing a program under section 6.2 of the Ministry of Agriculture, Food and Rural Affairs Act;

And whereas I, the Minister, wish to make changes to the Program;

Now therefore, and pursuant to my authority under sections 4 and 6.2(1) of the Ministry of Agriculture, Food and Rural Affairs Act as well as sections 49 and 54 of the Legislation Act, 2006, I hereby order the program known as the

Risk management program

be continued for the encouragement of agriculture, food and rural affairs within Ontario, as set out within this Order.

Part I – Interpretation

Interpretation

  1. For the purposes of interpreting this Order, including its recitals:
    1. Words in the singular include the plural and vice versa;
    2. Words in one gender include all genders;
    3. The headings do not form part of this Order – they are for reference purposes only and will not affect the interpretation of this Order;
    4. Any reference to dollars or currency in this Order will be to Canadian dollars and currency;
    5. Any reference to a statute means a statute of the Province of Ontario, unless otherwise indicated;
    6. Any reference to a statute is to that statute and to the regulations made pursuant to that statute as they may be amended from time to time and to any statute or regulations that may be passed that have the effect of supplanting or superseding that statute or regulation unless a provision of this Order provides otherwise; and
    7. The words "include", "includes" and "including" denote that the subsequent list is not exhaustive.

Definitions

  1. For the purposes of this Order, the terms below will have the following meanings:

    "Administrator" means the Person responsible for delivering the Program on behalf of the Program Administrator;

    "Administrator Agreement" means an agreement between Ontario and the Administrator whereby the Administrator agrees to undertake certain work in return for an Administrator Payment.

    "Administrator Payment" means the payment of money to an Administrator to cover the expenses the Administrator incurs pursuant to an Administrator Agreement;

    "Applicant" means a Person engaged in the production of one or more of the following commodities within Ontario:

    1. Cattle, as defined in Part VII.1 of this Order;
    2. Grains and Oilseeds, as defined in Part VII.2 of this Order;
    3. Hogs, as defined in Part VII.3 of this Order;
    4. Sheep, as defined in Part VII.4 of this Order; and
    5. Veal Cattle, as defined in Part VII.5 of this Order,

    but is not participating in the Program;

    "BRMRC" means the Business Risk Management Review Committee and includes any successor entity;

    "BRMRC OIC" means Order-in-Council 1460/2018, continuing the BRMRC, as amended by Order-in-Council 103/2021;

    "Business Day" means any working day, Monday to Friday inclusive, but excluding statutory and other holidays on which the Ministry has elected to be closed for business;

    "Category" means one or more parts of the following Components:

    1. The Cattle Category, as defined in Part VII.1 of this Order,
    2. The Grain and Oilseed Crops Category, as defined in Part VII.2 of this Order, and
    3. The Hog Category, as defined in Part VII.3 of this Order;

    "Component" means a sector set out under Parts VII.1, VII.2, VII.3, VII.4 or VII.5 of this Order;

    "Cost Of Production" means the estimated cost of producing a commodity covered under the Program, as determined in accordance with the applicable Guideline;

    "Coverage Level" means a minimum of eighty percent (80%) to a maximum of one hundred percent (100%) percentage coverage of the Cost Of Production of the commodities covered under the applicable Component, as set out in the applicable Guideline;

    "CRA BN" means the business number Canada Revenue Agency issued to the Person pursuant to the Income Tax Act (Canada);

    "Direction" means a Direction issued by the Minister pursuant to section 9 of this Order;

    "FBRN" means a farm business registration number issued under the Farm Registration and Farm Organizations Funding Act, 1993;

    "FIPPA" means the Freedom of Information and Protection of Privacy Act;

    "Fund" means the Risk Management Program Fund;

    "Guidelines" means the written document setting out the requirements, terms and conditions governing the operation of the Program or a Component thereunder;

    "Historical Market Price" means the average market price over the most recent years prior to the Program Year in which the Applicant has applied to the Program, as defined in the applicable Component Guidelines;

    "Market Price" means the average selling price for the commodity covered under this Program in a given time period, as calculated in the applicable Component Guidelines;

    "Minister" means the Minister of Agriculture, Food and Rural Affairs or any other member of the Executive Council to whom responsibility for the administration of the Ministry of Agriculture, Food and Rural Affairs Act is assigned or transferred under the Executive Council Act;

    "Ministry" means the ministry of the Minister;

    "Ontario" means Her Majesty the Queen in Right of Ontario, unless the context indicates otherwise;

    "Ontario Premium" means the amount of money Ontario provides under the Program, minus:

    1. Twenty-three percent (23%), which is provided under the Self-Directed Risk Management Program, as continued under Minister's Order 0004/2019, and
    2. Any Administrator Payment,

    paid on a per Program Year basis;

    "Order" means this Minister's Order, as it may be amended from time to time;

    "Overpayment" means any payment to which a Person is not entitled to receive at the time of the payment or to which the Person ceases to be entitled to receive at any time after the payment was made;

    "Participant" means a Person that has been accepted to participate in the Program;

    "Participant Premium" means amount of money a Participant pays for a Coverage Level for a commodity covered under a Component of the Program for a Program Year;

    "Person" means:

    1. An individual,
    2. A corporation,
    3. A partnership, or
    4. An unincorporated association;

    "Premises ID" means a unique identifier assigned by Ontario to a parcel of land pursuant to Minister's Order 0002/2018;

    "Previous MO" means Minister's Order 0005/2019, which continued the Program, as amended by Minister's Order 0008/2019;

    "Previous OIC" means the order formerly known as Order-in-Council 1309/2011, which established the Program, as amended by the orders formerly known as Order-in-Council 694/2012 and 1943/2012;

    "Program" means the Risk Management Program and includes the following Components:

    1. The Cattle Component, as set out under Part VII.1 of this Order,
    2. The Grain And Oilseeds Component, as set out under Part VII.2 of this Order,
    3. The Hogs Component, as set out under Part VII.3 of this Order,
    4. The Sheep Component, as set out under Part VII.4 of this Order, and
    5. The Veal Cattle Component, as set out under Part VII.5 of this Order;

    "Program Administrator" means the Assistant Deputy Minister – Policy Division of the Ministry, and includes any acting Assistant Deputy Minister – Policy Division of the Ministry, as well as any successor position;

    "Program Operator" means the Director of Farm Finance Branch – Policy Division of the Ministry, and includes any acting Director of Farm Finance Branch – Policy Division of the Ministry, as well as any successor position;

    "Program Payment" means the direct or indirect provision of funds to a Recipient under the Program;

    "Program Year" means the calendar year or crop year, as defined in the applicable Guideline;

    "Recipient" means a Person who receives a Program Payment;

    "Reporting Period" means the period of the Program Year for which the Participant will report all required production information, as set out in the applicable Guidelines;

    "Requirements Of Law" means all applicable statutes, regulations, by-laws, ordinances, codes, official plans, rules, Guidelines, approvals, permits, licences, authorizations, orders, decrees, injunctions, directions and agreements, as they may be amended from time to time, with all authorities that now or at any time hereafter may relate to the Applicant/Participant/Recipient's business operations, the Program or both;

    "SIN" means Social Insurance Number; and

    "Support Level" means the level of support the Participant chooses to have under the Program, as defined in Parts VII.1, VII.2, VII.3, VII.4 and VII.5 of this Order.

Purpose Of The Risk Management Program

  1. The purpose of the Program is to assist Participants in managing risks beyond their control as well as address gaps in the national business risk management programs by providing Participants with more predictable, bankable and timely financial assistance using an insurance-like model as the basis for the Program.

Part II – Term of The Risk Management Program

Application Of Order

  1. This Order applies to the 2021 Program Year and subsequent Program Years.

Termination Of The Risk Management Program

  1. Despite anything else in this Order, the Program will automatically terminate in the event the Program Administrator is of the opinion there is an insufficient appropriation from the Ontario Legislature or sufficient funding in the budget for the Program for any payment that is to be made under the Program. Where the Program is terminated pursuant to this section 5 of this Order, the following rules will apply:
    1. The Program Administrator will post, or cause to be posted, a notice on the Ministry's website where a copy of this Order is posted setting out the Program has been terminated and the date the Program was terminated;
    2. The Program Administrator will immediately provide notice, or cause notice to be immediately provided, of the termination to any Administrator delivering the Program and cause that Administrator to post a notice on its website setting out the Program has been terminated and the date the Program was terminated; and
    3. Any payments under the Program for which there is no appropriation will not be paid.
  2. Despite anything else in this Order, the Program may be terminated through the issuance of a Minister's Order terminating the Program. Where a Minister's Order is issued terminating the Program, the following rules will apply:
    1. The Program Administrator will post, or cause to be posted, a notice on the Ministry's website where a copy of this Order is posted, along with a copy of the Minister's Order terminating the Program, setting out the Program has been terminated and the date the Program was terminated;
    2. The Program Administrator will immediately provide notice, or cause notice to be immediately provided, of the termination to any Administrator that is delivering all or a part of the Program under the Program and cause that Administrator to post a notice on its website indicating the Program has been terminated and the date the Program was terminated; and
    3. Any payments owing under the Program will be paid, unless the Minister's Order terminating the Program provides otherwise.

Part III – Funding for The Risk Management Program

  1. Funding for the Program will be from the monies allocated to the Ministry by the Legislature for the purposes of the Program. The Program Administrator may provide funding or allow funding to be provided to any Person that is contemplated or permitted under the Program. The Program Administrator may also pay for or allow payments to be made for any administrative costs the Program Administrator determines are reasonable or prudent for the administration of the Program.
  2. Funding for the Program will only be used for the Program and the costs to administer the Program.

Part IV – Administration of the Risk Management Program

The Minister

  1. (1) Despite anything else in this Order or in the Guidelines for a Component, the Minister reserves the power for the Minister to issue a Direction to the Ministry or an Administrator responsible for administering one or more Components of the Program setting out what the percentage of Ontario's Premium will be for a particular Component for a particular Program Year.

    (2) Where the Minister issues a Direction, that Direction will remain in place until the Direction is amended, revoked or replaced.

    (3) Where the Minister issues a Direction, the Ministry or the Administrator will, as the case may be, implement that Direction as soon as is reasonably practicable.

Program Administrator's Authority Under The Risk Management Program

  1. The Program Administrator will be responsible for the overall administration of the Program. This includes:
    1. Approving and signing the Guidelines for the Program, including any amendments thereto;
    2. Entering into one or more Administrator Agreements with one or more Administrators;
    3. Operationalizing or causing the operationalization of the Fund established under Part V of this Order, including the separation of and separate accounting for Ontario's Premium to each Component, how the Fund may be invested as well as liquidity levels for the Fund; and
    4. Approving anything that needs to be approved under the Program that has not been assigned to the Program Operator.

Program Operator's Authority Under The Risk Management Program

  1. (1) The Program Operator will be responsible for the implementation and operation of the Program. This includes:
    1. Establishing standards and procedures for the delivery of the Program;
    2. Monitoring the performance of all aspects of the Program;
    3. Monitoring any Administrator's delivery of the Program; and
    4. Carrying out all other administrative functions required for the successful operation of the Program.

    (2) The Program Operator may allow a Person to continue participating in the Program even if that Person does not meet all the eligibility requirements set out under this Order, provided:

    1. The Person was originally found to be eligible to participate in the Program;
    2. The Person acted in good faith to be found eligible to participate in the Program;
    3. The Person acted in good faith while participating in the Program; and
    4. The Program Operator is of the opinion that not allowing the Person to continue participating in the Program would create an unfair result for that Person.

    (3) The Program Operator may waive any requirement for the Program set out in this Order or the Guidelines, provided the Program Operator is of the opinion that not providing such a waiver would create an unfair result for the Person requesting the waiver.

    (4) The Program Operator may impose conditions on any waiver the Program Operator provides under section 11(3) of this Order.

Administrator's Authority Under The Risk Management Program

  1. (1) The Program Administrator may enter into an agreement with one or more Administrators.

    (2) If the Program Administrator enters into an agreement with an Administrator, that agreement will include, at a minimum, the following:

    1. The roles and responsibilities of the Program Administrator and the Administrator regarding the delivery of the Program;
    2. The Administrator Payment the Administrator will receive;
    3. Service standards, if any, the Administrator will be required to meet;
    4. Set out how the Fund is to be managed by the Administrator;
    5. Reporting and audit requirements;
    6. Provisions for corrective action to address any events of default by the Administrator; and
    7. Anything else the Program Administrator believes is reasonable or prudent for the successful delivery of the Program.

    (3) The Program Administrator will not make an Administrative Payment or allow an Administrative Payment to be made to an Administrator unless that Administrator is in compliance with the terms and conditions of this Order and the Administrator Agreement.

Exercise of Administrative Powers Under The Risk Management Program

  1. The Program Administrator and the Program Operator have all necessary authority to deliver the Program.

Guidelines For The Risk Management Program

  1. (1) The Program Administrator will create or cause to be created Guidelines for each Component of the Program. The Guidelines will not conflict with anything contained in this Order. For the purposes of determining whether the Guidelines conflict with this Order, a conflict will exist if the Guidelines provide for something that is prohibited under this Order or if the Guidelines provide that something is not needed which this Order requires

    (2) Without limiting the Program Administrator's general administrative authority set out in sections 10 and 14(1) of this Order, the Program Administrator's authority to create or cause to be created Guidelines for each Component of the Program includes the authority to set out, or cause to be set out, the requirements, terms and conditions in the Guidelines in relation to:

    1. Setting out administrative deadlines for each Component in the Guidelines;
    2. Establishing the requirements, terms and conditions for any Program Payments that may be made under each Component in the Guidelines, including:
      1. The methodology in which Program Payments may be calculated,
      2. Caps on any Program Payments in addition to what is set out under section 74(1) of this Order,
      3. Minimum Program Payments,
      4. The timing of Program Payments, and
      5. Whether Program Payments can be assigned;
    3. Setting out reporting and audit requirements for each Component in the Guidelines that are in addition to what is set out under this Order;
    4. Setting out any review and/or appeal rights that an Applicant or Participant may have under each Component in the Guidelines that are not set out in this Order;
    5. Setting out how documents are to be served under each Component in the Guidelines;
    6. Setting out any requirements for each Component that must be set out in the Guidelines under this Order in the Guidelines; and
    7. Establishing any other requirements, terms or conditions that are reasonably necessary for the successful administration and delivery of a Component in the Guidelines.

    (3) The Program Administrator will:

    1. Post the Guidelines or cause the Guidelines to be posted on the Ministry's website or will require the Guidelines to be posted on a publicly available website; or
    2. Require an Administrator or cause the Administrator to post the Guidelines on that Administrator's website.

    (4) The Guidelines are not required to be posted until after this Order comes into force.

    (5) The Program Administrator may amend the Guidelines. Where the Guidelines are amended, the following will apply:

    1. The amended Guidelines will:
      1. Be posted on the Ministry's website or on another publicly available website, or
      2. Be posted on the website of the Administrator delivering the Program; and
    2. Any changes to the Guideline will not have any retroactive effect.

Part V – The Fund

  1. A Fund for the Program will be established.
  2. All Ontario Premiums and Participant Premiums will be deposited into the Fund.
  3. The Program Operator will account for the separate accounting of Ontario Premiums and Participant Premiums according to the Component in which such premiums should be paid or will cause for such separate accounting to be done.
  4. The Program Operator will not allow any cross-subsidization of Component funds within the Fund for another Component or will cause no such cross-subsidization of Component funds within the Fund to another Component to be done.
  5. (1) In the event that:
    1. The Program is being delivered by one or more Administrators, or
    2. The Program is being delivered by the Ministry,

      the Administrator Payment or the Ministry's costs to deliver the Program will be, as the case may be, paid out of the Fund.

      (2) Each Component will pay for any Administrator Payment or the Ministry's costs to deliver the Program based on how those costs are assigned to that Component each Program Year and such payment will be deducted from Ontario's Premium allocated to that Component under Parts VII.1, VII.2, VII.3, VII.4 and VII.5 of this Order.

  6. In the event the Fund earns any type of interest or other investment income in a Program Year, the totality of that interest or other investment income will be allocated to each Component based on the percentage of Ontario's Premium allocated to that Component, as set out under Parts VII.1, VII.2, VII.3, VII.4 and VII.5 of this Order.
  7. In the event there is a surplus in the Fund in one Program Year, that surplus will remain in the Fund and may be used to make Program Payments in subsequent Program Years.
  8. (1) All Program Payments will be paid out of the Fund.

    (2) A Program Payment made to a Participant will come from the funding allocated for the Component in which that Participant is participating in.

    (3) For greater certainty, a Program Payment made to a Participant will not come from any funds allocated to a Component in which that Participant is not participating in.

Part VI – General Eligibility Requirements And Loss Of Eligibility Under the ontario risk management program

General Eligibility Requirements Under The Risk Management Program

  1. (1) No Applicant will be considered to be eligible to participate in a Component of this Program unless that Applicant meets all the eligibility requirements set out in this Part VI of the Order as well as any additional eligibility requirements for the Component in which the application relates, as set out under Parts VII.1, VII.2, VII.3, VII.4 or VII.5 of this Order.

    (2) An Applicant will meet, at a minimum, the following eligibility requirements to participate in a Component of the Program:

    1. Be a Person;
    2. Apply to the Component using an approved application form;
    3. Submit a completed application form for the Component by the applicable deadline set out in the applicable Component Guidelines;
    4. Provide:
      1. Its CRA BN, or
      2. Its SIN if the Applicant is not eligible to receive a CRA BN and the Applicant is eligible to receive a Program Payment prior to receiving the Program Payment;
    5. Have a valid Premises ID;
    6. Have:
      1. A valid FBRN for the Program Year in which they are applying,
      2. A valid FBRN for the previous Program Year to the Program Year in which they are applying, or
      3. An exemption to having a FBRN issued pursuant to the Farm Registration and Farm Organizations Funding Act, 1993;
    7. Enrol all eligible commodities the Applicant produces for each Category of a Component the Applicant applies to, as set out in the applicable Component Guidelines;
    8. Pay the Premium, as determined by the applicable Guideline, by the deadline set out in applicable Component Guidelines;
    9. Not enrol the eligible commodity or eligible production more than once in a Component for the Program Year;
    10. Provide information to the Program Operator or the Administrator by the dates set out in the applicable Component Guidelines or as requested;
    11. Agree to be bound by the requirements, terms and conditions of the Component, as set out in this Order and the applicable Component Guidelines;
    12. Has not lost its eligibility to participate in the Component pursuant to sections 24, 25, 26 or 27 of this Order; and
    13. Is in material compliance with, agrees to remain in material compliance with, as well as remains in material compliance with all Requirements Of Law while participating under the Program.

Loss Of Eligibility To Participate In The Risk Management Program

  1. An Applicant/Participant/Recipient that willfully provides false or misleading information under the Program:
    1. May have their eligibility to participate in the Program revoked for the remainder of that Program Year and may lose their eligibility to participate in the Program for up to an additional two (2) Program Years thereafter; and
    2. Will repay any Program Payments received under the Program.
  2. An Applicant/Participant/Recipient that provides false or misleading information or is found to have acted in a negligent manner in allowing false or misleading information to be submitted on the Applicant/Participant/Recipient's behalf under the Program:
    1. May have their eligibility to continue to participate in the Program revoked for the remainder of that Program Year and may lose their eligibility to participate in the Program for up to one (1) additional Program Year; and
    2. Will repay any Program Payment received under the Program.
  3. (1) An Applicant/Participant/Recipient that is abusive toward any staff responsible for delivering the Program will receive one written warning from the Program Operator. If the Applicant/Participant/Recipient continues with his/her/its/their abusive behaviour, the Applicant/Participant/Recipient:
    1. May have their eligibility to participate in the Program revoked for the remainder of the Program Year; and
    2. May lose their eligibility to participate in the Program for up to one (1) additional Program Year.

      (2) In the event the Applicant/Participant/Recipient has been found to be ineligible to participate in the Program pursuant to section 25(1) of this Order and that Applicant/Participant/Recipient is abusive toward any staff responsible for delivering the Program after being allowed to participate in the Program again, the Applicant/Participant/Recipient may lose their eligibility to participate in the Program while this Order is in effect.
  4. An Applicant/Participant may be found to be ineligible to participate in the Program where that Applicant/Participant:
    1. Owes a debt to Ontario and is not in a repayment plan with Ontario, including an agent of Ontario; or
    2. Is not in compliance with any repayment plan the Applicant/Participant has with Ontario, including an agent of Ontario.

Part VII – The Risk Management Program Components

Part VII.1 –The Cattle Component

Definitions
  1. For the purposes of this Part VII.1 of the Order, the terms below will have the following meanings:

    "Cattle" means a bovine of a beef-type breed whose main characteristic is meat that is produced in Ontario for a minimum of one hundred twenty (120) calendar days and includes calves, steers and heifers;

    "Cattle Category" includes one or more of the following:

    1. Cow Calf Category – Cattle weighing an amount between the weight requirements set out in the Guidelines,
    2. Backgrounder Category – Cattle weighing an amount between the weight requirements set out in the Guidelines, and
    3. Feedlot Category – Cattle weighing an amount between the weight requirements set out in the Guidelines;

    "Guidelines" means the Risk Management Program Guidelines – Cattle Component;

    "Minimum Ownership Period" means the minimum period of one hundred and twenty (120) calendar days Cattle must be owned by the Participant and located in Ontario; and

    "Support Level" means the Cost of Production for Cattle for the Program Year multiplied by the Participant's chosen Coverage Level for the Program Year.

Eligibility Requirements

  1. (1) No Applicant will be eligible to participate in this Component unless that Applicant meets all the requirements set out under section 23(2) of this Order and section 29(2) of this Order.

    (2) The Applicant will meet the following eligibility requirements to participate in this Component:

    1. The Applicant must:
      1. Own and produce the Cattle in Ontario for the Minimum Ownership Period, or
      2. Be a member of a feeder cattle co-operative approved under the Ontario Feeder Cattle Loan Guarantee Program, or any successor program, that owns and produces the Cattle in Ontario for the Minimum Ownership Period; and
    2. The Cattle must fall within a Cattle Category;

    (3) Breeding stock will not be eligible for payment under the Backgrounder or Feedlot categories of the Cattle Category.

    (4) Cattle over the age of thirty (30) months will not be eligible for a Program Payment.

Payment Of Premiums
  1. (1) Participant Premiums for the Program Year will be calculated in accordance with the Guidelines.

    (2) Participants will pay the applicable Participant Premium in accordance with the Guidelines.

    (3) Notwithstanding anything else contained in this Part VII.1 of the Order or the Guidelines, Participants will pay any Participant Premium payable prior to receiving any Program Payment under this Component.

Cost Of Production
  1. The Cost Of Production for Cattle within each Cattle Category will be calculated in accordance with the Guidelines.
Market Price
  1. The calculation for the determining the Historical Market Price and the Market Price for Cattle within each Cattle Category will be in accordance with the data collection frequency, data sources and methodologies set out in the Guidelines
Program Payments And Adjustments
  1. (1) The Program Operator will be responsible for calculating or causing the calculation of Program Payments in accordance with this section 33 of the Order and the Guidelines.

    (2) Program Payments under this Component will be calculated using the production information the Participant provides at the required Reporting Period and in accordance with the calculation schedule set out in the Guidelines. For greater certainty, this calculation will not include any costs related to the production of Cattle outside of Ontario nor will it include any weight gain that occurred outside of Ontario.

    (3) Program Payments under this Component will be based upon the following:

    1. The difference between the Support Level and the Market Price for the applicable Cattle Category, as determined in the Guidelines;
    2. One of the following, depending on the Cattle being sold and the appropriate Cattle Category:
      1. The number of Cattle sold under the Cow Calf Category or
      2. The total eligible weight gain for Cattle sold under the Background Category or
      3. The total eligible weight gain for Cattle sold under the Feedlot Category multiplied by
    3. Ontario's forty percent (40%) multiplication factor to reflect Ontario's traditional forty percent (40%) share of agricultural business risk management program payouts.

    (4) The Guidelines will set out the way Cattle falling outside of the eligible weight range will be treated in terms of calculating any Program Payment.

    (5) Program Payments will be made in accordance with the Guidelines.

    (6) Partners operating under a partnership will enrol separately under this Component and will be treated in the following manner:

    1. Each partner must be eligible to participate in the Component based on that partner's own merits; and
    2. Any Program Payment the partner may be eligible to receive will be based on that partner's ownership interest in the Cattle.

Part VII.2 – The Grain And Oilseeds Component

Definitions
  1. For the purposes of this Part VII.2 of the Order, the terms below will have the following meanings:

    "Average Farm Yield" means a Participant's historical average crop yield as calculated pursuant to the methodology described in the Operation Document related to the Federal-Provincial-Territorial AgriInsurance Agreement, as amended;

    "Grain and Oilseed Program Crop" means the list of crops that may be enrolled under this Component, as set out in the Guidelines;

    "Guidelines" means the Ontario Risk Management Program Guidelines – Grain and Oilseed Component; and

    "Support Level" means the Cost of Production for a Grain and Oilseed Crop for the Program Year multiplied by the Participant's chosen Coverage Level for the Program Year.

Eligibility Criteria
  1. (1) No Applicant will be eligible to participate in this Component unless that Applicant meets all the requirements set out under section 23(2) of this Order as well as produces at least one Grain and Oilseeds Crop in Ontario.
Payment Of Premiums
  1. (1) Participant Premiums for the Program Year will be calculated in accordance with the Guidelines.

    (2) Participants will pay the applicable Participant Premium in accordance with the Guidelines.

    (3) Notwithstanding anything else contained in this Part VII.2 of the Order or the Guidelines, Participants will pay any Participant Premium payable prior to receiving any Program Payment under this Component.

Cost Of Production
  1. The Cost Of Production for Grain and Oilseed Crops will be calculated in accordance with the Guidelines.
Market Price
  1. The calculation for the determining the Historical Market Price and the Market Price for Grain and Oilseed Crops will be in accordance with the data collection frequency, data sources and methodologies set out in the Guidelines.
Program Payments And Adjustments
  1. (1) The Program Operator will be responsible for calculating or causing the calculation of Program Payments in accordance with this section 39 of this Order and the Guidelines.

    (2) Program Payments under this Component will be calculated using the production information the Participant provides at the required Reporting Period and in accordance with the calculation schedule set out in the Guidelines.

    (3) Program Payments under this Component will be based upon the following:

    1. The Participant's Average Farm Yield multiplied by
    2. The difference between the Support Level and the Market Price for the applicable Grain and Oilseed Crop, as determined in the Guidelines multiplied by
    3. The Participant's acreage of the Grain and Oilseed Crop multiplied by
    4. Ontario's forty percent (40%) multiplication factor to reflect Ontario's traditional forty percent (40%) share of agricultural business risk management program payouts divided by
    5. The number of payments a Participant is eligible to receive under the Guidelines per Program Year.

    (4) Program Payments will be paid in accordance with the Guidelines.

    (5) Partners operating under a partnership will enrol separately under this Component and will be treated in the following manner:

    1. Each partner must be eligible to participate in the Component based on that partner's own merits; and
    2. Any Program Payment the partner may be eligible to receive will be based on that partner's ownership interest in the Grain and Oilseed Crop.

Part VII.3 – The Hogs Component

Definitions
  1. For the purposes of this Part VII.3 of the Order, the terms below will have the following meanings:

    "Early Wean" means a Hog that weighs less than the amount set out in the Guidelines;

    "Eligible Production" means the weight gain of Grower/Finishers and head of Early Weaners and Feeders attributable to the Hogs sold by the Participant;

    "Farrow" means the production of a litter of Hogs by a sow;

    "Feeder" means a Hog that is not yet raised to slaughter weight but weighs an amount that is within the weight requirements set out in the Guidelines;

    "Grower/Finisher" means a Hog that weighs an amount that is within the weight requirements set out in the Guidelines that is kept for slaughter;

    "Guidelines" means the Ontario Risk Management Program Guidelines – Hog Component;

    "Hog" means a domesticated pig raised for meat production;

    "Hog Category" means:

    1. Early Wean Category – Hogs weighing less than the amount set out in the Guidelines,
    2. Feeder Category – Hogs weighing an amount within the weight requirements set out in the Guidelines, and
    3. Grower/Finisher Category – Hogs weighing an amount within the weight requirements set out in the Guidelines;

    "Live Weight" means the actual weight of a Hog that has not been slaughtered;

    "Minimum Eligible Weight" means the minimum weight for a Grower/Finisher, as set out in the Guidelines;

    "Minimum Ownership Period" means the following:

    1. Early Wean – A minimum of fifteen (15) days,
    2. Feeder – A minimum of thirty-five (35) days, and
    3. Grower/Finisher – A minimum of seventy (70) days,

    which is the minimum length of time per category a Participant must own the Hog and that Hog is located in Ontario; and

    "Support Level" means the Cost of Production for Hogs within a Hog Category for the week multiplied by the Participant's chosen Coverage Level for the Program Year.

Eligibility Criteria
  1. (1) No Applicant will be eligible to participate in this Component unless that Applicant meets all the requirements set out under section 23(2) of this Order and section 41(2) of this Order.

    (2) The Applicant will meet the following eligibility requirements to participate in this Component:

    1. The Applicant must own and produce the Hogs in Ontario for the Minimum Ownership Period; and
    2. The Hogs must fall within a Hog Category.
Payment Of Premiums
  1. (1) Participant Premiums for the Program Year will be calculated in accordance with the Guidelines.

    (2) Participants will pay the applicable Participant Premium in accordance with the Guidelines.

    (3) Notwithstanding anything else contained in this Part VII.3 of the Order or the Guidelines, Participants will pay any Participant Premium payable prior to receiving any Program Payment under this Component.

Cost Of Production
  1. The Cost Of Production for Hogs within the Hog Category will be calculated in accordance with the Guidelines.
Market Price
  1. The calculation for the determining the Historical Market Price and the Market Price for Hogs within the Hog Category will be in accordance with the data collection frequency, data sources and methodologies set out in the Guidelines.
Program Payments And Adjustments
  1. (1) The Program Operator will be responsible for calculating or causing the calculation of Program Payments in accordance with this section 45 of this Order and the Guidelines.

    (2) Program Payments under this Component will be calculated using the production information the Participant provides at the required Reporting Period and in accordance with the calculation schedule set out in the Guidelines. For greater certainty, this calculation will not include any costs related to the production of Hogs outside of Ontario nor will it include any weight gain that occurred outside of Ontario.

    (3) Program Payments under this Component will be based upon the following:

    1. The difference between the Support Level and the Market Price for the applicable Hog Category, as determined in the Guidelines multiplied by
    2. One of the following, depending on the Hogs being sold and the appropriate Hog Category:
      1. The number of Early Wean sold within the weight range of the Farrow to Early Wean Category or
      2. The number of Feeders sold within the weight range of the Feeder Category or
      3. The total eligible weight gain for all Grower/Finishers which has occurred in the Grower to Finisher Category multiplied by
    3. Ontario's forty percent (40%) multiplication factor to reflect Ontario's traditional forty percent (40%) share of agricultural business risk management program payouts

    (4) No Program Payment will be issued for any weights below the Minimum Eligible Weight for Hogs sold in the Grower/Finisher Category.

    (5) The Guidelines will set out the way Hogs falling outside of the eligible weight range will be treated in terms of calculating any Program Payment.

    (6) Program Payments will be made in accordance with the Guidelines.

    (7) Partners operating under a partnership will enrol separately under this Component and will be treated in the following manner:

    1. Each partner must be eligible to participate in the Component based on that partner's own merits; and
    2. Any Program Payment the partner may be eligible to receive will be based on that partner's ownership interest in the Hogs.

Part VII.4 – The Sheep Component

Definitions
  1. For the purposes of this Part VII.4 of the Order, the terms below will have the following meanings:

    "Eligible Weight" means the weight range of a Lamb, as set out in the Guidelines;

    "Lamb" means a sheep produced in Ontario within the weight range set out in the Guidelines and is less than one (1) year old;

    "Minimum Ownership Period" meansthe minimum period of thirty (30) days that a Lamb must be owned by the Participant and located in Ontario;

    "Guidelines" means the Ontario Risk Management Program Guidelines – Sheep Component; and

    "Support Level" means the Cost of Production for Lambs for the Program Year multiplied by the Participant's chosen Coverage Level for the Program Year.

Eligibility Criteria
  1. (1) No Applicant will be eligible to participate in this Component unless that Applicant meets all the requirements set out under section 23(2) of this Order.

    (2) The following Lambs will not be eligible for the purposes of calculating a Program Payment under this Component:

    1. Lambs with a weight outside of the Eligible Weight; and
    2. Lambs that have not been owned and produced in Ontario by the Participant for the Minimum Ownership Period.
Payment Of Premiums
  1. (1) Participant Premiums for the Program Year will be calculated in accordance with the Guidelines.

    (2) Participants will pay the applicable Participant Premium in accordance with the Guidelines.

    (3) Notwithstanding anything else contained in this Part VII.4 of the Order or the Guidelines, Participants will pay any Participant Premium payable prior to receiving any Program Payment under this Component.

Cost Of Production
  1. The Cost Of Production for Lambs will be calculated in accordance with the Guidelines.
Market Price
  1. The calculation for the determining the Historical Market Price and the Market Price for Lambs will be in accordance with the data collection frequency, data sources and methodologies set out in the Guidelines.
Program Payments And Adjustments
  1. (1) The Program Operator will be responsible for calculating or causing the calculation of Program Payments in accordance with this section 51 of this Order and the Guidelines.

    (2) Program Payments under this Component will be calculated using the production information the Participant provides at the required Reporting Period and in accordance with the calculation schedule set out in the Guidelines. For greater certainty, this calculation will not include any costs related to the production of Lambs outside of Ontario nor will it include any weight gain that occurred outside of Ontario.

    (3) Program Payments under this Component will be based upon the following:

    1. The difference between the Support Level and the Market Price for Lambs, as determined in the Guidelines multiplied by
    2. The total pounds of weight gain sold within the Eligible Weight multiplied by
    3. Ontario's forty percent (40%) multiplication factor to reflect Ontario's traditional forty percent (40%) share of agricultural business risk management program payouts

    (4) The Guidelines will set out the way Lambs falling outside of the eligible weight range will be treated in terms of calculating any Program Payment.

    (5) Program Payments will be made in accordance with the Guidelines.

    (6) Partners operating under a partnership will enrol separately under this Component and will be treated in the following manner:

    1. Each partner must be eligible to participate in the Component based on that partner's own merits; and
    2. Any Program Payment the partner may be eligible to receive will be based on that partner's ownership interest in the Lambs.

Part VII.5 – The Veal Cattle Component

Definitions
  1. For the purposes of this Part VII.5 of the Order, the terms below will have the following meanings:

    "Guidelines" means the Ontario Risk Management Program Guidelines – Veal Cattle Component;

    "Support Level" means the Cost of Production for Veal Cattle for the Program Year multiplied by the Participant's chosen Coverage Level chosen for the Program Year;

    "Minimum Eligible Weight" means the minimum weight for a Veal Cattle, as set out in the Guidelines;

    "Minimum Ownership Period" meansthe minimum of ninety (90) calendar days that a Veal Cattle must be owned by the Participant and located in Ontario; and

    "Veal Cattle" means an Ontario produced bovine weighing within the weight range as set out in the Guidelines;

Eligibility Criteria
  1. (1) No Applicant will be eligible to participate in this Component unless that Applicant meets all the requirements set out under section 23(2) of this Order and section 53(2) of this Order.

    (2) The Applicant must own and produce the Veal Cattle in Ontario for the Minimum Ownership Period.

 Payment Of Premiums
  1. (1) Participant Premiums for the Program Year will be calculated in accordance with the Guidelines.

    (2) Participants will pay the applicable Participant Premium in accordance with the Guidelines.

    (3) Notwithstanding anything else contained in this Part VII.5 of the Order or the Guidelines, Participants will pay any Participant Premium payable prior to receiving any Program Payment under this Component.

Cost Of Production
  1. The Cost Of Production for Veal Cattle will be calculated in accordance with the Guidelines.
Market Price
  1. The calculation for the determining the Historical Market Price and the Market Price for Veal Cattle will be in accordance with the data collection frequency, data sources and methodologies set out in the Guidelines.
Program Payments And Adjustments
  1. (1) The Program Operator will be responsible for calculating or causing the calculation of Program Payments in accordance with this section 57 of this Order and the Guidelines.

    (2) Program Payments under this Component will be calculated using the production information the Participant provides at the required Reporting Period and in accordance with the calculation schedule set out in the Guidelines. For greater certainty, this calculation will not include any costs related to the production of a Veal Cattle outside of Ontario nor will it include any weight gain that occurred outside of Ontario.

    (3) Program Payments under this Component will be based upon the following:

    1. The difference between the Support Level and the Market Price, as determined in the Guidelines multiplied by
    2. The number of Veal Cattle sold within the weight range multiplied by
    3. Ontario's forty percent (40%) multiplication factor to reflect Ontario's traditional forty percent (40%) share of agricultural business risk management program payouts

    (4) The Guidelines will set out the way Veal Cattle falling outside of the eligible weight range will be treated in terms of calculating any Program Payment.

    (5) Program Payments will be made in accordance with the Guidelines.

    (6) Partners operating under a partnership will enrol separately under this Component and will be treated in the following manner:

    1. Each partner must be eligible to participate in the Component based on that partner's own merits; and
    2. Any Program Payment the partner may be eligible to receive will be based on that partner's ownership interest in the Veal Cattle.

Part VIII – Internal Reconsiderations And Requests For Review To The Business Risk Management Review Committee For The Risk Management Program

Internal Reconsideration Of Decisions Made Under The Risk Management Program

  1. (1) An internal reconsideration process allowing an Applicant or Participant to ask for a decision made pursuant to the Applicant or Participant be reconsidered may be established.

    (2) Where an internal reconsideration process is established pursuant to section 58(1) of this Order, the following will be followed:

    1. A guidance document setting out how the internal reconsideration process operates will be established and made publicly available;
    2. Timelines in which a decision under the internal reconsideration process will be issued will be set out and followed; and
    3. Applicants or Participants will be informed that the Applicant or the Participant is not required to have an original decision internally reconsidered.

    (3) No request for an internal reconsideration will be made ninety (90) days after the initial decision was made.

Request For Review To The Business Risk Management Review Committee Under The Risk Management Program

General

  1. This Program is a program in which the BRMRC may hear Reviews pursuant to the BRMRC OIC.
  2. Where an Applicant or Participant is not satisfied with:
    1. The initial decision; or
    2. The decision arising out of an internal reconsideration of the initial decision,
    the Applicant or Participant may request a Review be undertaken by the BRMRC within ninety (90) days after the initial decision was made or the decision arising out of an internal reconsideration of the initial decision was made.
  3. Despite the time in which a request for Review is to be made under section 64 of this Order, the Chair of the BRMRC may extend the time in which an Applicant or Participant may request a Review be undertaken by the BRMRC if the Chair is satisfied extenuating circumstances prevented the Applicant or Participant from making the request for Review within the time limit set out under section 60 of this Order.
Processing Reviews And Business Risk Management Review Committee Recommendations

  1. The BRMRC may conduct a Review of the initial decision or the internal reconsidered decision in writing or in person.
  2. Where an Applicant or Participant requests a Review pursuant to section 62 of this Order, the request will:
    1. Be made to the Chair of the BRMRC;
    2. Be in writing;
    3. Set out the nature of the request for Review;
    4. Set out the grounds upon which the Applicant or Participant intends to rely upon during the Review; and
    5. Set out whether the Applicant or Participant wants the BRMRC to conduct the Review in writing or in person.
  3. Subject to sections 65, 66 and 67 of this Order, the BRMRC will conduct the Review in accordance with the rules the BRMRC established for Reviews made under the Program pursuant to the OIC.
  4. The Chair of the BRMRC will, upon receipt of the Review package, assign the Review to the panel responsible for conducting the Review as soon as is practicable after receiving the Review package.
  5. The Review conducted by the BRMRC is strictly limited to what the Applicant or Participant requested be reviewed during the Review. The BRMRC will not consider any other issue not specifically raised in the Review package it received from the Chair.
  6. The BRMRC will provide a written copy of the BRMRC's recommendations to the:
    1. Applicant or the Participant; and
    2. The person making the initial decision or the internally reconsidered decision.
Final Decision

  1. The individual responsible for making the final decision on the matter will make a final decision, after considering the recommendation of the BRMRC, within thirty (30) Business Days of receiving the BRMRC's recommendation pursuant to section 67 of this Order.
  2. The final decision is strictly limited to what the Applicant or Participant requested be reviewed during the Review. The person responsible for making the final decision will not consider any other issue not specifically raised in the Review package the Chair of the BRMRC originally received pursuant to section 60 of this Order.
  3. The individual responsible for making the final decision on the matter will make a final decision, after considering the recommendation of the BRMRC, within thirty (30) Business Days of receiving the recommendation from the BRMRC pursuant to section 67 of this Order. The individual responsible for making the final decision will also provide a written copy of the final decision to:
    1. The Applicant or Participant; and
    2. The Chair of the BRMRC,
    within the same thirty (30) Business Day time period in which the final decision will be made.

Part IX – General Program Payment Provisions Under The Risk Management Program

  1. Participating in the Program does not create a legal, equitable or other right to receive a Program Payment.
  2. Any Program Payments a Participant may be eligible to receive under a Component may be pro-rated in the event there are insufficient funds to make full Program Payments from the Fund for that Component. The Program Operator will determine whether there are sufficient funds as well as any rate of proration that is to be made.
  3. Ontario is not liable for providing additional funds for a Component if there are insufficient funds to make full Program Payments from the Fund for that Component.
  4. (1) The maximum Program Payment a Participant can receive is one million two hundred thousand dollars ($1,200,000.00):
    1. Per Cattle Category under the Cattle Component set out under Part VII.1 of this Order;
    2. Under the Grain Component set out under Part VII.2 of this Order;
    3. Per Hog Category under the Hog Component set out under Part VII.3 of this Order;
    4. Under the Sheep Component set out under Part VII.4 of this Order; and
    5. Under the Veal Cattle Component set out under Part VII.5 of this Order.
    (2) For greater certainty, a Participant can receive the maximum Program Payment set out under section 74(1) of this Order for more than one category of a Component or more than one Component in a Program Year.
  5. Any Program Payment a Recipient receives is considered income for the purposes of the Income Tax Act and will be recorded as such.
  6. A Participant/Recipient will not assign any Program Payment that may be issued to another Person unless the Guidelines authorize such assignment.
  7. Any Program Payment is provided in connection with a social or economic policy and that the Program is a social or economic program.

Part X – Collection, Use And Disclosure Of Information Under The Risk management program

  1. The collection of personal information, as defined under the FIPPA, is necessary for the proper administration of this Program. The Program Administrator will only collect or will only allow others to collect the minimum personal information necessary to meet the Program's objectives. Applicants/Participants/Recipients will consent to the collection of any personal information, as defined under the FIPPA, that is necessary for the administration of the Program.
  2. Applicants/Participants/Recipients will consent to the use and disclosure of any personal information that is collected pursuant to this Order, for the purposes of:
    1. Verifying any information provided;
    2. Confirming the Person who received a Program Payment paid taxes on that Program Payment;
    3. Conducting audits;
    4. Enforcing the terms and conditions of the Program;
    5. Collecting any debt a Person may owe to Ontario arising:
      1. Prior to the Program, or
      2. From the Program; and
    6. Any other use and disclosure set out in the Program Guidelines.
  3. Applications to the Program will contain a notice of collection of personal information within the meaning of the FIPPA and require the Applicant to indicate the Applicant consents to the collection of that information as well as for the use and disclosure of that information for the purposes set out under section 79 of this Order.
  4. (1)A Participant participating as a sole proprietor, a partner within a partnership or a member of an unincorporated association authorizes the collection and use of that Participant's SIN, as collected pursuant to section 23(2)(d)(ii) of this Order, where that Participant does not have a CRA BN and that Participant is eligible to receive a Program Payment.

    (2) Where it is necessary to collect a Participant's SIN under the Program, including section 23(2)(d)(ii) of this Order, that Participant's SIN will only be used for the purposes set out under sections 79(b), (c), (d) and (e) of this Order.

    (3) Where it is necessary to collect a Participant's SIN, that Participant consents to the use and disclosure of that Participant's SIN to any government department/ministry, agency or third party for the purposes set out under sections 79(b), (c), (d) and (e) of this Order.
  5. Any Person who receives a Program Payment under the Program will provide any information that is requested within ten (10) Business Days of the request unless the request for information contains a different deadline, in which case the information will be provided in accordance with that request for information.
  6. (1)Any Person who receives a Program Payment will authorize the collection of information, including personal information, as defined under the FIPPA, from any government department/ministry, agency or third party for the purposes of verifying any information the Person provided as well as for the enforcement, if applicable, of the terms and conditions of the Program.

    (2) Any Person who receives a Program Payment will consent to the use of and disclosure of any information, including personal information, as defined under the FIPPA, collected under the Program to any government department/ministry, agency or third party for the purposes of verifying any information the Person provided as well as for the enforcement, if applicable, of the terms and conditions of the Program.

    (3) When collecting, using and disclosing information under this Part X of the Order, personal information, as defined under the FIPPA, will not be collected, used or disclosed if the purpose for collecting, using or disclosing such information can be obtained by using non-personal information.

Part XI – Audits Under The risk management program

  1. Any Person who receives a Program Payment under the Program will consent to any audits that may be conducted in relation to the Program. Any such audit may be conducted upon giving the Person who received the Program Payment a minimum of twenty-four (24) hours' notice during normal business hours.
  2. Any Person who receives, directly or indirectly, a Program Payment will provide reasonable assistance during any audit. This includes:
    1. Allowing access to any person, place or thing required for auditing purposes within ten (10) Business Days of the request being made for access to that person, place or thing unless the request or access to that person, place or thing contains a different deadline, in which case access to the person, place or thing will be provided in accordance with that request for access to the person, place or thing;
    2. Allowing for the inspection of any records that relate to the Program Payment;
    3. The taking of pictures or other recordings; and
    4. Allowing for the copying of any records that relate to the Program Payment into as well as the removal of any copied documents from the premises of the person that received the Program Payment.
  3. The Guidelines for the Program will contain a notice about the audit rights set out under this Part XI of the Order and every Participant who receives a Program Payment is deemed to accept the auditing provisions set out in this Order.

Part XII – Collection Of Debts under the risk management program

Collection Of Existing Debts Owed To The Crown Under The Risk Management Program

  1. (1) Any Program Payment a Person may receive may be set-off against any existing debt that Person may owe to Ontario.

    (2) The right of set-off provided under section 87(1) of this Order is in additional to any other remedies Ontario may have at law, in equity or otherwise to recover any debt a Person may owe to Ontario.

Collection Of Debts From Recipients Arising Under The Risk Management Program

  1. Any Person who receives an Overpayment owes a debt to Ontario.
  2. The Program Administrator will use, or caused to be used, reasonable efforts to collect a debt arising from a Person receiving an Overpayment.
  3. The termination of the Program will not, in any way, affect any Person's obligation for repaying any Overpayment to Ontario.
  4. (1)Any Person who receives an Overpayment agrees Ontario may set-off that debt against any other payments Ontario may owe to that Person.

    (2) The right of set-off provided under section 95(1) of this Order to collect on any debts arising under the Program is in additional to any other remedies Ontario may have at law, in equity or otherwise to recover any debt a Person may owe Ontario.

Part XIII – Transition

  1. Nothing in this Order effects any rights or obligations set out under or arising from the Previous MO.
  2. (1) Subject to section 93(2) of this Order, the Previous MO is revoked.

    (2) The Previous MO remains in effect only to the extent that any outstanding matters arising from the Previous MO have been conclusively and finally resolved. For greater certainty, any outstanding matters arising from the Previous MO will be resolved in accordance with the terms and conditions set out under the Previous MO and any guidelines created thereunder.

This Order comes into effect on the date it is signed.

Original signed by:

The Honourable Lisa Thompson
Minister of Agriculture, Food and Rural Affairs

Executed on this 4th day of October, 2021.


For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca