Business Risk Management
FVGC is calling for modernized Business Risk Management programs that better reflect the realities of fruit and vegetable production and support proactive risk reduction.About Business Risk Management
The financial situation of Canadian fruit and vegetable operations has deteriorated over the last decade.
Persistent inflation, rising production costs, labour pressures, downward pressure on farm gate prices, extreme weather, and U.S. market uncertainty have intensified pressure on growers.
Existing Business Risk Management programs do not adequately meet the evolving needs of fruit and vegetable growers. Many programs are designed around normal production years and are poorly adapted to catastrophic events, regional differences, and the realities of horticulture.
Modernizing BRM for horticulture
Modernized BRM programs must do more than respond after losses occur. BRM should help growers reduce risk before disaster strikes.
Climate adaptation, pest and disease preparedness, resilience-building investments, and controlled environment adaptation can reduce the need for future emergency payments.
Modernized BRM should be treated as a strategic capital investment in risk reduction, domestic food production, and food security.
Without targeted adjustments, Canadian fruit and vegetable operations will face increasing financial pressure, with direct consequences for domestic food production and the availability of Canadian-grown fruits and vegetables.
FVGC recommends the Government of Canada:
- Permanently restore the AgriStability trigger to 85% of the reference margin.
- Review AgriStability reference margin calculations to better account for the growing frequency of extreme weather events.
- Permanently increase:
- the AgriStability advance payment percentage to 75%;
- the compensation rate to 90%; and
- the maximum payment limit to $6 million.
- Expand AgriInsurance coverage for all fruit and vegetable producers, including greenhouse production systems.
- Adapt AgriInsurance programs to the specific needs of horticulture and make them more affordable for growers.
- Replace AgriRecovery with an alternative disaster loss model that is more flexible and effective.
- Permanently increase the interest-free portion of the Advance Payments Program to $350,000, with extended repayment terms.
- Examine alternative financing models that improve access to low-cost capital.
- Provide direct support to fruit and vegetable growers through top-ups to existing AgriInvest accounts.
- Allow provinces and territories greater flexibility to implement tailored programs that reflect regional production, varied climate systems, and marketing realities.
- Create a dedicated horticulture capital fund to support proactive risk mitigation investments in:
- water management;
- storage and processing capacity;
- food safety;
- climate adaptation;
- applied research and innovation; and
- plant pest and disease preparedness.
A Food Lens for Business Risk Management
BRM programs affect farm viability, domestic food production, supply chains, and food security. Applying a food lens means modernizing these programs so they reflect the realities of fruit and vegetable production and help reduce risk before disaster strikes.
For more information
please contact us by submitting this form.