Business Risk Management

Business risk management (BRM) tools are essential to Canada’s agriculture. But unfortunately, the current programs do not adequately address risk in the production of fresh fruits and vegetables.

About Business Risk Management

As the House of Commons Standing Committee on Agriculture and Agri-Food noted in its 2024 report, Improving the Resilience of Canada’s Horticultural Sector, the current suite of Business Risk Management (BRM) programs needs an urgent overhaul.

Extreme weather events—including droughts, floods, wildfires, hailstorms, and early frosts—have increasingly threatened Canada’s fruit and vegetable growers. These climate-related challenges disrupt production cycles, reduce yields, and cause significant financial strain for producers. The extraordinary disruption to Canada’s trade relationship with the United States has made these vulnerabilities even more acute.

Business Risk Management

THE ISSUE

Canada’s five BRM programs were designed to provide a safety net for farmers facing different risks. However, these programs have proven inadequate for the unique needs and challenges of the fruit and vegetable sector, particularly in the face of sudden, unpredictable trade disruptions such as the new tariffs that the United States government threatens to impose.

As each day passes without addressing the gaps in Canada’s safety net system, more agri-businesses face financial uncertainty. This uncertainty compounds the negative impact of tariff-related market loss by putting investments on hold and causing supply chains to unravel.

The current crisis should not result only in stopgap measures; rather, it must also invite a strategic and in-depth review and re-think of programs whose time has passed. In the current context, there is an opportunity to not only improve the suite of BRM safety net programs but also expand them to mitigate risk exposure.

Specifically, we view the current crisis as an opportunity to modernize our thinking and move from a BRM paradigm to Business Risk Management and Mitigation (BRMM) one. Enhancing programs with a range of robust risk mitigation measures, such as enhanced funding for pest management programs, weather-indexed insurance, investments in proactive on-farm risk reduction approaches and infrastructure, and market diversification would reduce risks associated with fruit and vegetable production, perishability, and grow sector resiliency.

WHY THIS MATTERS

The need for immediate action cannot be overstated. While BRM programs are slated for review in 2028, their demonstrated unsuitability calls for an accelerated timeline, including immediate steps to support Canada’s fruit and vegetable growers navigate the market uncertainty caused by the imposition of US tariffs.

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Business Risk Management

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