From 27 February 2020 to 8 July 2020, the House of Commons Standing Committee on Agriculture and Agri-Food conducted a study of business risk management (BRM) programs in Canada.

Risk is everywhere in agriculture. Extreme weather events, lost opportunities because of global trade disputes, and health crises such as the COVID-19 pandemic can all cause significant losses for agriculture and agri-food businesses, sometimes ending in bankruptcy.

Since the 1950s, Canada has used BRM programs to protect agricultural producers from these risks. All the witnesses who appeared before the Committee emphasized the importance of BRM programs in managing modern agriculture and agri-food businesses in Canada. Under the current agricultural policy framework, the Canadian Agricultural Partnership (CAP), these programs are jointly administered and funded by the federal and provincial/territorial governments, who are free to tailor them to their own particular needs. Federal, provincial and territorial ministers of agriculture meet annually, and these meetings can lead to revisions of these programs.

This report outlines the major BRM programs under the CAP, discusses their limitations and makes recommendations for improvement. For example, the Committee recommends increasing some parameters that determine program payments, such as the AgriStability trigger level and the percentage of Allowable Net Sales under AgriInvest.

Witnesses reported that some sectors or regions may have limited access to BRM programs. Solutions proposed by witnesses and reflected in the Committee’s recommendations include better integration of horticultural crops into AgriInsurance, exploring ways to expand the Western Livestock Price Insurance Program to the rest of the country, and reviewing the definition of extraordinary costs under AgriRecovery.

Finally, the report explores ways to improve risk management in Canada beyond current programs. For instance, the Committee presents recommendations about the Livestock Tax Deferral Provision and the implementation of a statutory deemed trust for the produce sector. While these recommendations fall outside of the BRM programs under the CAP they are related to risks that were identified by several stakeholders. The Committee also recommends that the BRM programs be improved to better reflect the needs of small and diversified farm businesses, that they be adapted to the specific needs of young farmers, and that producers be better trained in risk management and available tools.