The deadline to apply for income disaster assistance under the Ontario Whole Farm Relief Program (OWFRP) has been extended to Sept. 25.
Under the original program parameters, producers were required to submit their applications by July 31. In light of changes to the federal Agricultural Income Disaster Assistance (AIDA) program, and enhancements to the OWFRP announced this spring, program administrators have extended the deadline to ensure that all Ontario producers who may be eligible for assistance have enough time to complete the application package.
The program is designed to help farmers deal with the unexpected events of 1998 and 1999, including a serious, worldwide market downturn and severe, but isolated, weather-related incidents. It is available to all eligible producers, regardless of commodity.
1998 & 1999 Ontario Whole Farm Relief Program Enhancements
Several enhancements have been made to the 1998 and 1999 Ontario Whole Farm Relief Program (OWFRP). These enhancements provide more benefits to Ontario farmers. The 1998 enhancements are:
• Federal (60 per cent) share of 70 per cent of negative margin coverage;
• Ontario adjustment for farms that have undergone a significant change in the scale of their operation;
• Ontario reduced NISA linkage by 50 per cent to 1.5 per cent of Eligible Net Sales;
The 1999 enhancements are:
• Choice of olympic five year (drop high and low years) or last 3 year average;
• Federal (60 per cent) share of 70 per cent of negative margin coverage;
• Adjustment for farms that have undergone a significant change in the scale of their operation;
• Ontario reduced NISA linkage by 50 per cent to 1.5 per cent of ENS;
• Family labour included as an eligible expense;
• Federal (60 per cent) share of revised inventory valuation method depending on the commodities held in inventory.
Revised Inventory Valuation Method
The Ontario Whole Farm Relief Program (OWFRP) will provide Ontario farmers with the federal (60 per cent) share of the revised inventory valuation method for their 1999 OWFRP applications. The revised method, which will be provided for the federal share of the payment only, gives producers two methods for how to value each commodity depending on how the value of that commodity changed during 1999.
Applicants must use the following when calculating the revised method:
1. The published OWFRP Fair Market Value (FMV) for the end of the fiscal period will be used to value both beginning and ending inventory in situations where the commodity price has increased from the beginning to the end of 1999. This is the current method of inventory valuation used by the OWFRP.
2. The published OWFRP FMV for the beginning of the fiscal period will be used to value beginning inventory, and the published OWFRP FMV for the end of the fiscal period will be used to value ending inventory, in situations where the commodity price has decreased from the beginning to the end of 1999.
A form outlining the revised inventory valuation method will be available during the week of July 10, 2000. This form will be made available on the OWFRP website and will be provided to agents and OMAFRA Regional Information Centers.
How do farmers apply for the 1998 & 1999 enhancements?
All 1998 OWFRP applicants were automatically considered for the 1998 enhancements. Farms that have not previously applied for 1998, but are now eligible for a 1998 payment can do so until Sept., 25.
The 1999 OWFRP Application Package contains all the information needed to determine an applicant’s eligibility including all of the 1999 enhancements except for the federal (60 per cent) share of the revised inventory valuation method.
If you are already eligible for an OWFRP payment, or have significantly increased the scale of your operation, simply submit your 1999 application and the OWFRP will consider you for all of the 1999 enhancements.
If you are not eligible for an OWFRP payment, the OWFRP will make available, a form that will assist you in determining if the revised inventory valuation method, now makes you eligible for a 1999 payment. If you are in this circumstance, contact the OWFRP and a form will be sent once it is available.
If you have further questions about the revised inventory valuation method, or any of the 1998 & 1999 enhancements, please contact the OWFRP at 1-877-838-5144, or visit the OWFRP website at www.gov.on.ca/omafra.
From the Archives:
News, July 2000
