Proactive risk management key to unlocking Canadian agriculture’s future

A new report released by the Canadian Agri-Food Policy Institute (CAPI) calls for a shift toward proactive, comprehensive risk management to strengthen the long-term resilience of Canadian agriculture.

Striking the Balance: Proactive Strategy versus Reactive Response authored by Farm Management Canada urges government and industry to look beyond traditional Business Risk Management (BRM) programs and look at a modernized, nationally aligned approach that equips farmers to better anticipate and manage risk; not just recover from it.

CAPI Managing Director Tyler McCann said too often when risk management is talked about in agriculture policy it is only about business risk management programs.

“Risk management is much more than that. This paper highlights the proactive and reactive ways that farmers can approach risk management and encourages policies that support more proactive risk management,” he said. “Changing the risk management policy landscape so that it aligns with how farmers approach risk management is essential to effective risk management policy.”

The report provides a practical, farm enterprise-wide framework—spanning People, Finance, Markets, Production, Business Environment, and Business Strategy—to help align policy, support services, and farm practices around prevention and preparedness when it comes to managing farm risk.

It highlights how over-reliance on reactive BRM programs can discourage alternatives and leave gaps at the farm level, while proactive planning and skills development can build confidence, reduce stress, and improve performance and long-term returns.

Heather Watson, Executive Director, Farm Management Canada said it’s no secret that Canada’s farmers are under immense pressure.