Ont. posts pre-harvest prices for RMP coverage

Market prices for the 2009 pre-harvest pricing period under the Ontario agriculture ministry’s Risk Management Program (RMP) are now available from Agricorp, the provincial ag funding agency.

Payments for this pricing period will be made on corn/seed corn, popping corn, spring grain, canola and Japanese beans, depending on a farmer’s chosen RMP coverage level, the province said in a notice Monday.

The new pre-harvest market price for corn and seed corn under the RMP is $4.12 per bushel, down from the 2008 pre-harvest price of $5.42 but up slightly from the 2008 post-harvest price of $4.11.

Spring grain’s pre-harvest market price is 7.98 cents per pound, down from 9.32 cents in the 2008 post-harvest period and 9.02 cents in the earlier pre-harvest period.

Canola’s posted price of 19.1 cents per pound is up slightly from 19.02 cents in the 2008 post-harvest period. Popping corn is posted at 18.4 cents per pound, up slightly from 18.35 cents in the 2008 post-harvest period.

The RMP’s posted pre-harvest price for “Japanese/other” beans is 40.44 cents per pound, down from 48.56 cents in the 2008 post-harvest period and 48.83 cents in the year-earlier pre-harvest period.

“We expect to start delivering payment at the end of November,” the government said.

RMP was launched in 2007 as a three-year pilot price support program for Ontario’s grain and oilseed growers. Payments are to be triggered when prices for eligible grains and oilseeds fall below a specific support level, based on a cost-of-production formula. Four coverage levels are available for each grain and oilseed crop: 100, 95, 90, or 85 percent of the cost of production.

Growers who want to participate in the new program are required to be enrolled in both AgriStability and Production Insurance (PI).

For most eligible commodities, two payments are to be issued for each crop year. The first (typically fall) payment is to be based on the average of forward contract prices for six months prior to harvest of each commodity. The second (typically spring) payment will be based on the average of cash or spot prices for six months during and after harvest.

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