Agriculture and Agri-Food

The House of Commons Agriculture and Agri-Food Committee met to study the development of Canada’s next agricultural policy framework, focusing on business risk management (BRM) programs. Appearing were Steven Jurgutis, Director General of the Policy, Planning and Integration Directorate, and Francesco Del Bianco, Director General of the Business Risk Management Directorate, both from the Department of Agriculture and Agri-Food (AAFC).

Steven Jurgutis outlined that the current Sustainable Canadian Agricultural Partnership runs until 2028 and includes five pillars, with BRM programs like AgriInsurance, AgriStability, AgriInvest, and AgriRecovery providing demand-driven protection against income and production losses. He noted that recent enhancements include temporarily raising the AgriStability compensation rate and the advance payments program’s interest-free limit, and that long-term climate change impacts on BRM are a priority. He emphasized that the next framework (2028-2033) must reflect current challenges like trade disruptions and rising costs, with engagement underway through ministerial roundtables and an online survey, and that collaboration with provinces and territories is foundational.

Francesco Del Bianco explained that AgriInsurance, the largest BRM program, is designed and delivered by provincial Crown corporations, with AAFC ensuring actuarial soundness and subsidizing 60% of premiums. He noted that administrative costs vary by province due to minimum delivery costs, and that provinces share best practices through regular meetings. On AgriRecovery, he confirmed a recent response in Newfoundland and Labrador for drought-related feed costs, and that the program is triggered when other supports are insufficient. He acknowledged that small, diversified farms may trigger AgriStability less frequently due to self-insurance, and that discussions are ongoing to improve the suite for small businesses. Regarding the advance payments program, he stated that collateral requirements are set by law, and changes would require legislative amendments, which he offered to provide in writing. He also noted that provinces can purchase private reinsurance, and AAFC is open to exploring ways to reduce financial risk for provinces, such as national pooling.