Canadian Agri-Food Policy Institute Advocates for Proactive Risk Management to Strengthen Agriculture

What's Happening?

The Canadian Agri-Food Policy Institute (CAPI) has released a report titled 'Striking the Balance: Proactive Strategy versus Reactive Response,' urging a shift towards proactive risk management in Canadian agriculture. The report, authored by Farm Management Canada, highlights the need for a modernized, nationally aligned approach to risk management that goes beyond traditional Business Risk Management (BRM) programs. It emphasizes the importance of equipping farmers with tools to anticipate and manage risks proactively, rather than merely recovering from them. The report outlines a comprehensive framework that spans various aspects of farm enterprise, including people, finance, markets, production, business environment, and strategy. It argues that over-reliance on reactive BRM programs can discourage alternative approaches and leave critical capability gaps at the farm level. The report calls for policy changes to support proactive risk management, which can build confidence, reduce stress, and improve long-term performance and returns for farmers.

Why It's Important?

The report's recommendations are significant for the future of Canadian agriculture, as they aim to enhance the sector's resilience and growth. By advocating for proactive risk management, the report addresses the pressures faced by Canadian farmers, who often feel vulnerable to disasters. This approach could empower farmers to navigate uncertainties more effectively, fostering strategic thinking and long-term prosperity. The report also highlights the need for national farm data harmonization, which could improve policy and farm-level decision-making. The proposed changes could lead to better risk assessment and planning, ultimately benefiting the entire agricultural sector. The emphasis on proactive strategies aligns with broader trends in risk management across industries, potentially setting a precedent for other sectors to follow.

What's Next?

The findings from the report will be discussed at CAPI's third annual Exchange conference, 'Canadian Agri-Food in a Risky World,' scheduled for October 1-2, 2025, in Ottawa. Farm Management Canada will host an interactive workshop during the conference to put the report's findings into practice. The report concludes with several policy recommendations, including the creation of a national risk management-focused policy lens and framework, supported by a national task force and research network. These steps aim to boost farmer capacity through training and advisory support, incentivize comprehensive risk assessment and planning, and accelerate national farm data harmonization. These initiatives could lead to significant changes in how risk management is approached in Canadian agriculture.

Beyond the Headlines

The report's emphasis on proactive risk management highlights broader ethical and cultural dimensions within the agricultural sector. By shifting focus from reactive to proactive strategies, the report challenges traditional approaches to risk management, encouraging a cultural shift towards prevention and preparedness. This change could lead to long-term shifts in how farmers perceive and manage risks, fostering a more resilient and sustainable agricultural industry. The report also underscores the importance of addressing human risks alongside business risks, recognizing the impact of stress and uncertainty on farmers' well-being and decision-making capabilities.