Ontario increasing provincial support to agristability program
Ontario supported the federal government proposal put forward in November 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, 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 has made the decision to move ahead with providing the provincial 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.”
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 enhancements to the AgriStability program will help to ensure farmers can access additional support when they needed it in a severe or disaster event. Farm business risk management programs play a vital role in the long-term competitiveness of Ontario’s agricultural sector and its capacity to maintain our food supply.
The Ontario agri-food sector supports more than 860,000 jobs in Ontario and contributes more than $47.3 billion each year to the province’s economy. ■