Here’s a simple example of how the new Risk Management Program works.

The province has calculated that the target (or support) price for corn is $4.18 per bushel. But let’s say that at the end of the day the average price of corn is $3.50 per bushel.

The producer would receive 40 % of the difference between $3.50 and $4.18. The difference in price is 68 cents but 40 % of the difference is 27 cents. This means the producer would get 27 cents per bushel from the province.

The beauty of the Quebec ASRA program is that the Quebec producer would get the entire 68 cents from the province per bushel.

Let’s say the Ontario farmer grows 200 acres of corn with a yield of 100 bushels per acre. The Ontario farmer would get a payment from the province of (0.27 x 20,000) $5,400.

But the Quebec farmer, with the same yield, thanks to ASRA, would get $13,600.