Note from CAPI  

The risks facing Canadian farmers are evolving rapidly—and the policy response will determine whether they become threats or opportunities. Too often, risk management policy is viewed narrowly as Business Risk Management (BRM) programming. While Ministers have approved changes to AgriStability and AgriInvest in response to shifting risks, tweaking programs is not an effective risk management strategy on its own. 

A lack of proactive, comprehensive risk management may leave the farmers overly dependent on government supports and create gaps in risk management understanding, capacity, and confidence at the farm level. This is a lost opportunity: farmers are the first line of defense when it comes to risk management and they could be better equipped to manage risks and seize the opportunities that come with them. 

This report lays out a path toward more proactive risk management. It calls for a modernized risk management framework and strategy, the establishment of a national task force and research network, and greater focus on building farmer capacity. Together, these steps chart a clear path forward for a sector that is proactive, confident, and ready for the evolving risks ahead. 

Key Takeaways  

• Canada’s agricultural policies are perpetuating producer dependency on BRM programs and discouraging alternatives. Canada’s agricultural sector has been overly reliant on BRM programs as the only risk management solution. Focusing on proactive planning, prevention, and preparedness through skills development, advisory services and incentive-based programming will help increase producer resilience, adaptability and confidence while alleviating stress caused by uncertainty.  

• Shifting to proactive risk management is the key to long-term sector resilience. Investing in risk prevention and reduction strategies boosts productivity, profitability, and the adoption of innovative technologies and practices, creating a self-reinforcing cycle of reduced loss and increased economic prosperity within Canada’s agricultural sector. It is also the area of risk management with the most room for effective growth. 

• Declining investments in research, knowledge transfer, infrastructure, and marketing have weakened Canada’s ability to support proactive risk management. As a price-taking nation, Canada must continue to invest in policies and programming that build the capacity for proactive risk management. Moreover, Canada’s capacity to continue to support risk management in an increasingly volatile business environment through the current suite of reactive BRM programs is limited.   

• A modernized risk management framework and strategy are needed. A nationally aligned policy framework that prioritizes risk management, developed with producer involvement and endorsement, is essential to create an equitable, effective, and comprehensive strategy that caters to the diverse and evolving needs of Canada’s producers.  

• National farm data harmonization is key. Canada relies on economic modelling to fill information gaps and provide responsive risk management solutions. Investing in integrated, standardized national farm data and performance metrics will enable targeted, evidence-based policies and more effective risk management solutions. 

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