Ontario supported the federal government proposal put forward in November 2020 to enhance the AgriStability program by removing the Reference Margin Limit (RML) and increasing the compensation rate from 70 per cent to 80 per cent. In March 2021, federal, provincial and territorial ministers agreed to the RML removal but have not reached agreement on the compensation rate.
In a proactive move to support Ontario farmers, the province is moving ahead with its portion of the compensation rate increase, retroactive to the 2020 growing season.
“Ontario farmers can’t wait any longer for improvements to the AgriStability program – so the Ontario government is taking action and also calling on the federal government and other provinces to step up as well,” said Lisa Thompson, minister of agriculture, food and rural Affairs. “By enhancing the AgriStability program, we can better help those Ontario farmers who have been impacted by large income losses from factors outside of their control.”
What it means to growers
Over the last year risk management support for Ontario farmers has increased by approximately $75 million. The provincial increase to the compensation rate and the combined federal and provincial support annually through the removal of the RML will result in approximately $25 million in increased support for Ontario farmers. This is in addition to the $50 million in additional annual funding for the Risk Management Program that was announced in July 2020.
“The Ontario Fruit and Vegetable Growers’ Association (OFVGA) welcomes the increase to the provincial share of AgriStability’s compensation rate in Ontario,” said Bill George, OFVGA chair. “This leadership by the Ontario Government underscores the need to provide support to fruit and vegetable growers who had a very difficult 2020 and are still coping with the ongoing challenges of COVID-19. We call on Minister Bibeau to join Minister Thompson in implementing this policy by funding the traditional federal share of this program change."
Source : OMAFRA