For release: December 7, 2004
McGuinty Government Helps Protect Grain and Oilseed Producers
Announces Details of Market Revenue Insurance Program
Guelph/Toronto - The McGuinty government is supporting Ontario's
grain and oilseed producers through the Market Revenue Insurance (MRI)
program, Minister of Agriculture and Food Steve Peters announced today.
"The MRI program offers Ontario's grain and oilseed producers protection
when market prices for their crops fall," said Peters. "This program will
work in the short-term, however, we are working towards a new generation
of programs that will take a long-term approach to income stability."
The Ontario government is providing a total of $94 million for both
2003 and 2004. AGRICORP will deliver final payments for the 2003 crop
year to participating grain and oilseed producers in the new year.
MRI is one of the province-specific initiatives, known as companion programs,
to be phased out under the federal-provincial-territorial Agricultural
Policy Framework (APF). Two new national programs - the Canadian Agricultural
Income Stabilization (CAIS) program and Production Insurance - are now
available to provide farmers with effective tools to manage the business
risks associated with farming.
“The APF is a national initiative, designed to move Canada’s
agri-food industry to a new level of sustainability and competitiveness,”
said Peters. “To that end, we are working together to develop effective
production insurance programs and ensuring CAIS is addressing the needs
of our farmers.”
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Contact:
Jamie Rilett
Minister's Office
(416) 326-6439
(416) 458-2610 (Mobile)
BACKGROUNDER
MARKET REVENUE INSURANCE PROGRAM
The Market Revenue Insurance (MRI) program provides payments to producers
of eligible grain and oilseed crops when the price they receive for those
crops falls below a predetermined support price. Payments are calculated
by applying the price shortfall to an individual producer’s guaranteed
production level.
Support prices for crops covered by MRI are established annually, based
on a 15-year indexed moving -average price. Eligible crops include corn,
soybeans, winter wheat, spring wheat, spring grains, white beans, coloured
beans, canola, seed corn, popcorn, sunflowers, field peas, flax, triticale,
faba beans, buckwheat, millet, rye, sorghum and spelt.
With the extension of the Market Revenue Insurance (MRI) program, final
payments for the 2003 crop year are being issued. Producers of spring
grain, white pea beans and coloured beans qualify for 2003 payments and
can expect to receive cheques in early January 2005.
Payments will be made at the following rates:
- Spring grain: $3.48/metric tonne
- White beans: $51.65/metric tonne
- Coloured beans: $88.71/metric tonne
MRI program participants who have not already reported their 2003 acreage
and yield to AGRICORP should do so immediately. Producers are also strongly
encouraged to report their 2004 yield and acreage data as soon as possible.
This can be done by calling the customer action centre at 1-888-247-4999.
Producers not currently participating in MRI can also call this number
to obtain enrolment details.
The province is working closely with grain and oilseed groups regarding
payments for the 2004 crop year. A government-industry working group,
established to address the grain and oilseed sector’s business risk
management needs following this transition period, has been instructed
to report to the Minister of Agriculture and Food by February, 2005.
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Contacts:
Jamie Rilett
Minister Peters' Office
(416) 326-6439
(416) 458-2610 (Mobile)
John Fitzgerald
Ministry of Agriculture and Food
(519) 826-4850
