Agriculture, by nature, is a volatile business. Farmers are faced with risk in almost every part of their business from the weather to market fluctuations. That is why business risk management programs are critical to the profitability and success of all Ontario farmers.
Business risk management programs fall under agricultural programming, and are historically a shared responsibility between the provincial and federal governments. Funding for the programs are traditionally shared 60:40, with 60 per cent of program funding coming from the federal government and 40 per cent from each province. That cost-sharing approach allows agricultural programs to be effectively and efficiently delivered and targeted to regional agricultural needs. Because while all farmers face similar challenges across Canada, provincial business risk management programs accommodate regional issues and circumstances.
The Ontario Federation of Agriculture is lobbying the provincial government in the lead up to the Oct. 6 provincial election to work with it to help secure federal participation in agricultural business risk management programs.
The Ontario government has already shown leadership by accepting and committing to provide 40 per cent funding for the recently announced risk management program. Now is the time for the federal government to step up and commit to provide its 60 per cent share to make risk management a fully-funded program available to Ontario farmers.
The program promises to be an effective tool for Ontario farmers to reduce farm market price volatility and stabilize on-farm income. And we need federal support to be able to deliver a stronger, more sustainable program.
The OFA has been a strong advocate for programs designed specifically for Ontario’s agricultural sector. In fact, OFA worked with Ontario’s agricultural industry to design the risk management program to help mitigate the unpredictable nature of commodity markets.
The OFA, together with the Canadian Federation of Agriculture, is working to build a stronger Canadian agricultural economy. Risk is not something we will ever eliminate in agriculture, but a fully-funded national program will provide an effective business tool for Ontario farmers.
Keith Currie is an Executive Member, of the Ontario Federation of Agriculture
