New Report shines light on how to build farm financial resilience to manage farm risk

OTTAWA,  (GLOBE NEWSWIRE) -- The global pandemic, the increasing urgency for climate action, conflicts and trade disputes, socio-political unrest, inflation, rising input costs, input scarcity, and other notable events have converged to define the 2020s as a period of uncertainty and significant change for Canada’s agricultural sector. This uncertainty has had material impacts on supply chains and global markets, and at the farm level, warranting a national discussion to establish a path forward to improve risk management within the Canadian agricultural sector in light of past, present and future risks.

A National Agriculture Risk Management Forum was hosted by Farm Management Canada in Ottawa February 16–17, 2023.

The objective of the Forum was to identify the impacts of actual, emergent, and potential risks and opportunities for agriculture to establish a path forward and make meaningful progress in building on-farm risk resilience and the build capacity for Canada’s farmers to seize new opportunities.

The Forum brought together key representatives from different parts of the agriculture sector including academia, advisors, industry associations, lenders, producers, provincial governments and retailers.

A comprehensive summary report titled Building Farm Financial Resilience is now available on Farm Management Canada’s website at: fmc-gac.com/programs-services/research-analysis/#risk-management.

The Report contains key messages and recommendations identifying roles and responsibilities for key players within Canada’s agricultural sector. Recommendations include:

• Create a national risk management education and communication strategy for producers.
• Demonstrate the connection between sustainability, resilience and risk management to increase the understanding of the practical benefits for farmers.
• Undertake greater collaboration with farmers when designing farming policies and programs like the Sustainable Agricultural Policy.
• Coordinate and expand farm financial literacy and risk management training.
• Standardize farm financial statements and streamline farm financial reporting.
• Encourage producer groups and farm organizations to prioritize, invest in, and coordinate risk management training and education.
• Identify gaps in agricultural research and development of new technologies to support emerging risks.
• Invest in mental health programming that caters to the unique needs of farmers.
• Prioritize investments into high-speed internet to ensure rural communities have access to educational programming and resources.

The National Agriculture Risk Management Forum and subsequent Report was funded in part through Agriculture and Agri-Food Canada’s AgriRisk Initiatives Program.