Wheat Export
About Ontario Wheat

Ontario wheat is grown by over 17,000 producers on one of the most diverse wheat growing landscapes in the world. Over our 100 year history of commercial wheat production in Canada, Ontario has evolved to become the highest quality soft wheat region in North America.

Over the last ten years, Ontario wheat has experienced a transformation from a predominantly rotational crop to one of importance in producers’ commercial crop planning. This has created the annual export availability of upwards of one million tonnes of one of Canada’s best kept secrets - Ontario wheat.

Location

Situated between the Great Lakes and the St. Lawrence River Basin, Ontario’s temperate climate and fertile soils are key components to producing top quality wheat. Ontario’s varied geography and size results in diversified wheat production - from soft wheats in the southwest to hard wheats in the east.

Other key advantages to Ontario wheat include our proximity to a strong transportation infrastructure of highways, rail lines and river access to ocean ports and our ample supply of energy resources.

The St. Lawrence seaway is the main conduit for grain exports from Ontario to overseas ports. Wheat is loaded on lake vessels from Ontario bay ports and transported through the St. Lawrence river system to ocean ports in the province of Quebec on the Atlantic ocean.

Production

Ontario is the most diverse wheat growing region in Canada due to our ability to grow high quality winter and spring wheat.
There are four distinct classes of wheat grown commercially and two more classes in developmental research trials. The four classes of wheat are soft red and soft white winter wheat primarily used in pastries and cakes, hard red winter wheat used for crackers, bread/flour coatings and flat breads and hard red spring wheat grown for bread.

The two new classes of wheat in development are hard white spring wheat used for whole wheat white bread and durum wheat for pasta.

Feed wheat is also grown in Ontario in small quantities for local livestock operations.

The predominant type of wheat grown is soft red winter wheat grown in the southwestern region of the province.

Quality

Canada has one of the most sophisticated grain quality control systems in the world. Maintained by the Canadian Grain Commission (CGC), an independent agency, this system ensures our customers receive the grain quality and consistency they require. The cornerstones of this quality assurance system are stringent variety registration and grading systems.
RISK MANAGEMENT PROGRAM CALCULATOR
RMP Cap
A cap of $100 million of government funding has been applied to the Risk Management Program (RMP). To ensure this funding cap is not exceeded, payments will be prorated if estimated funds and industry need exceed $100 million.

Coverage Level
Your selected coverage level (of either 90% or 100%) represents a proportion of the 40% provincial contribution to RMP.

Support Price

Support levels are based on the target price for a crop, multiplied by your chosen coverage level (90 or 100 %) for that crop. When the market price falls below your support level for a crop, you receive a payment.

Premiums
Your premium rates are based on:
  • Target prices (industry's average cost of producing a crop) and support levels
  • The level of coverage you choose: 90 or 100%

Your annual premium is calculated using this formula:
premium rate x average farm yield (AFY) x 2014 acreage

Payments
Payments for RMP: Grains and Oilseeds are based on the difference between the support levels and average market prices. Grain and oilseed crops have two different support levels, depending on which coverage level you choose: 90 or 100%.

Payments are made if a crop's market prices fall below the annual support level. The support level is based on the industry average cost of producing a crop (target price), which is calculated annually by the Ontario Ministry of Agriculture and Food (OMAF).

Payments are based on:
  • The difference between market prices and support levels at the 40% provincial share
  • Available funding for the Risk Management Program
This rate is then multiplied by your acres and 50% of your AFY:
Payment = acres x (AFY x 50%) x payment rate
The Payment schedule below shows the payments and adjustments you may be eligible to receive.

Proration Factor
Given the newly imposed $100 million cap on the Risk Management Program, payments may be subject to a proportional limitation of distribution. The proration factor is determined by dividing the amount of program funding available by the amount of production for which funding is needed.

You may select different proration factors to see how your projected RMP payments may vary under different scenarios. A lower proration factor would normally be associated with a year in which a high number of producers are eligible for program payments. In 2013, the proration factor was approximately 30%.

Farmer's Risk Management Premium Fund
All RMP premiums are collected by Agricorp and placed in the Farmer's Risk Management Premium Fund (FRMPF), which is managed separately by each participating commodity group. The commodity groups use the funds to supplement payments in years of greater need. In years when the premium money is not required to top up payments, the money will remain in the premium fund. In any program year, the commodity groups can decide whether or not to make payments from the Farmer's Risk Management Premium Fund. Payments are based on RMP payments for that program year.
For the 2013 program year, producers were eligible for a top-up payment from the FRMPF.

Disclaimer
This RMP Calculator is an estimation tool designed to help grain and oilseed producers assess their annual potential program payments.
Grain Farmers of Ontario cannot guarantee that the estimates generated by this calculation tool will be the same as program payments received, or subsequent adjustments in any program year. This tool should not be used for income tax purposes.