NFU President Katie Ward speaks to Ag Committee on Business Risk Management programs

(Ottawa) — Today National Farmers Union (NFU) President Katie Ward urged the House of Commons Agriculture and Agri-Food Committee to support changes to Canada’s Business Risk Management Programs that will support a robust food system in Canada that can deliver both production and fair incomes in the face of shocks and disruptions such as the COVID-19 crisis and increasingly erratic weather conditions.

“All farmers want to make a good living by farming. We do not seek government handouts — in fact, when you look up “self-reliance” in the dictionary, you’ll probably find a Canadian farmer,” said Ward. “Business Risk Management programs are the backstops necessary to enable farmers to continue farming in the face of unexpected bad harvests, low prices and unexpected events. We note that, when we lose farmers to one or two bad seasons, we lose not only their production, but the skills and knowledge these farmers hold.”

Ward shared information that documents the stagnation of farmers’ realized net income over the past three decades, even while total revenues have gone up.

“It might be obvious, but the lack of adequate net income leaves Canadian farmers increasingly vulnerable to market fluctuations, weather-related yield reductions, and rising input costs. We need BRM programs that are equitable and work effectively,” said Ward.

Ward urged the Committee to recommend the following changes:

• Return AgriStability trigger to 15% of reference margin and eliminate the eligible expenses cap;
• Make crop insurance (AgriInsurance) more responsive to the impacts of climate change and improve coverage to make it more useful for smaller and more diversified farms;
• Simplify and streamline application processes to make BRMs more accessible, particularly for new and young farmers.

In her presentation Ward also encouraged the government to make economic stability and adequate farm incomes a high priority. This would help keep down the cost of BRM programs. She also highlighted the importance of the Canadian Grain Commission, both as a watchdog to prevent more powerful grain and railway companies from taking advantage of farmers and by ensuring our grain exports’ quality can command a high price from export customers.

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For more information:

Katie Ward, NFU President: (613) 797-0601