As farmers know well, risks to financial success in any year are many. Weather, crop and livestock health issues, market factors and spiking input costs are perennial threats, and they are all as large or larger than ever in 2018.
It’s why business risk management (BRM) programs are so very important.
Federally, AgriStability provides support when a large margin decline occurs, AgriInvest provides cash flow to help farmers manage income decline, and AgriInsurance provides cost-shared insurance against natural hazards.
Enrolment in AgriInvest and AgriInsurance has remained relatively stable over the last several years, according to Agriculture and Agri-Food Canada (AAFC). “For the 2015 program year, approximately 80 per cent of farms were participating in AgriInvest,” reports AAFC senior media relations officer Patrick Gerard. “For 2015-16, the value of insured production compared to total value of all agricultural products (excluding forage and livestock) was 76 per cent.”
AgriStability, however, has been declining. Currently, only about one-third of producers across Canada participate, with the 75 per cent of market revenues covered by the program in 2007 plunging to 55 per cent in…
