The House of Commons Standing Committee on Agriculture and Agri-Food met to study business risk management (BRM) programs in the context of the next policy framework. Witnesses included William Huber from the Saskatchewan Association of Rural Municipalities, Scott Ross and Brodie Berrigan from the Canadian Federation of Agriculture, Colin Hornby from Keystone Agricultural Producers, and individual farmers Nelson Fagan, Éric Lafontaine, and Kristjan Hebert.
William Huber said Saskatchewan producers find BRM programs like AgriStability and AgriInvest failing because eligible expenses do not reflect modern costs such as fuel, fertilizer, freight, and land rent, and because payments are too slow to help when needed. He called for clearer definitions of eligible expenses, faster payment mechanisms, and regional adaptability, noting that producer confidence has declined and that many farmers have not received support despite years of drought.
Scott Ross argued that BRM programs were built for a different risk profile and are now misaligned with frequent climate volatility, geopolitical instability, and rising input costs. He recommended a whole-of-government approach to treat agriculture as a national growth engine, with more choice and flexibility in risk management tools, including tailored solutions for sectors like forage and livestock, and a single federal portal to reduce administrative burden.
Colin Hornby emphasized that BRM programs must support competitiveness, as most Manitoba farmers sell into global markets. He recommended permanently increasing the AgriStability compensation rate to 90%, raising early payments from 50% to 75%, and increasing the trigger rate from 70% to 85% of reference margin, as well as removing cross-compliance requirements from AgriInvest and indexing the interest-free portion of the advance payments program to inflation.
Brodie Berrigan supported Scott Ross’s call for a whole-of-government approach, noting that infrastructure funding and tax incentives from other portfolios could help prevent losses and reduce reliance on reactive BRM tools. He also highlighted that non-tariff barriers, such as those in the EU, limit Canada’s ability to fully utilize trade agreements.
Nelson Fagan described the inadequacy of current livestock insurance in Newfoundland and Labrador, which only covers death from predators and offers payouts far below market value, and noted that AgriRecovery forage assistance was announced too late for him to source hay. He called for livestock insurance covering disease outbreaks and natural disasters like wildfires, and for programs that account for high transportation costs on the island.
Éric Lafontaine recounted how a 2023 drought and wildfires in Abitibi caused a 70% yield loss, but crop insurance assessed only 36%, leaving a compensation shortfall that still affects his farm. He urged ending one-size-fits-all solutions, allowing more on-site inspections to reflect real conditions, and making exceptional measures genuinely responsive, arguing that adequate compensation is an investment in rural stability.
Kristjan Hebert noted that the average cost of production on grain farms has doubled in ten years, and policy risks like tariffs can erase profits quickly. He proposed transforming AgriInvest into a tax-deferred income-smoothing account, eliminating the $3-million cap on AgriStability, and introducing a public-private voucher system for crop insurance, while also urging adjustments to the Canadian Agricultural Loans Act and tax rules to support farm succession.
The committee concluded with members thanking witnesses and agreeing to receive further written submissions.
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