McGuinty government helps protect grain and oilseed producers

Archived Release

McGuinty government helps protect grain and oilseed producers

Announces Details Of Market Revenue Insurance Program GUELPH/TORONTO, ON, Dec. 7 - 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." Disponible en français www.OMAF.gov.on.ca Backgrounder ------------------------------------------------------------------------- December 7, 2004 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. Disponible en françaisFor further information: Contact: Jamie Rilett, Minister's Office, (416) 326-6439, (416) 458-2610 (Mobile); John Fitzgerald, Ministry of Agriculture and Food, (519) 826-4850