Ontario Agriculture

The network for agriculture in Ontario, Canada

The CFFO Commentary: Future Safety Net Design Drawing Attention

By Nathan Stevens

The next Growing Forward agreement is starting to loom on the distant horizon and farm groups are developing new options that differ from the current program. James Rude of the Department of Rural Economy at the University of Alberta was recently in Guelph to share his insights into Canadian Business Risk Management Programs, and what the key priorities are for government and farmers.

In his view, Canadian safety net programs are attempting to accomplish two different goals with one broad program. The first is a desire to redistribute income in a more equitable fashion for farmers. The second is to address market failures when they occur. The result is the inability to adequately address either goal properly to the satisfaction of farmers.

Government has three main concerns with safety net programming. The first is that there ought to be a predictable amount of money spent on programming, especially within the context of budgetary deficits. The second is the need to recognize the impact government intervention in the marketplace may have on trade obligations. The third key concern is ensuring support programs have a minimal impact on the production choices made by farmers.

On the other hand, producers are dissatisfied with the level of complexity involved in Agristability. Rude asserted that farmers are more interested in an income transfer than in risk reduction. At the same time, they want program payments that reflect their individual operation and they want the payment quickly. These desires are at odds with each other. Rude asserted that if farmers really want timely income transfers then they would be best served by direct payments to farmers. However, this type of payment should be targeted and require cross-compliance with other policy goals, such as environmental standards.

Finally, Rude asked a very tough question regarding safety net design. Should business risk management programs address the issue of long-term decline in a commodity price or should they stabilize fluctuations that occur around the long-term decline?

In Rude’s opinion, the future holds continued trade-offs between socially acceptable safety nets and minimizing distortions for producers. To him, this means that the farming community is in for more of the same from government programming, unless there is a convincing argument put forward to head in a new direction.

Nathan Stevens is the Research and Policy Advisor for the Christian Farmers Federation of Ontario. The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. It can be heard weekly on CKNX Wingham and CFCO Chatham, Ontario and is archived on the CFFO website: www.christianfarmers.org. The CFFO is supported by 4,200 farm families across Ontario

Views: 59

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Canada Launches Carbon Market Working Group and Agriculture Watches for Opportunities

Federal, provincial and territorial governments have launched a new working group to explore greater cooperation among Canada's carbon markets, farmers and agricultural organizations may be watching closely for future opportunities.

Ag Canada Raises Durum Export Forecast; Lowers Ending Stocks

Agriculture Canada has reduced its forecast for Canadian durum ending stocks in 2026-27 amid stronger-than-expected exports, while raising its average price outlook. In its October supply-demand update released Tuesday, Ag Canada lowered projected durum ending stocks by 150,000 tonnes from September to 1.35 million, reflecting an upward revision in expected exports, partially offset by lower anticipated domestic use. Despite the reduction, ending stocks are still projected above the 1.102 million tonnes carried out of 2025-26 and the 512,000 tonnes remaining at the end of 2024-25. Ag Canada increased its 2026-27 durum export forecast by 250,000 tonnes to 5.3 million, down 9% from last year's record but 15% above the five-year average. Meanwhile, expected domestic feed, waste and dockage use was reduced by 100,000 tonnes to 433,000 tonnes, partly offsetting the impact of higher exports on ending stocks. Canadian durum exports have started the crop year strongly, with 787,000 ton

Higher Diesel Prices Put Further Squeeze on Canadian Farm Margins: FCC Report

Record-high diesel prices are putting additional pressure on Canadian farm profitability and transportation costs, with consumers potentially facing higher grocery bills later this year, according to a new report from Farm Credit Canada (FCC). The FCC Economics report examines how elevated diesel prices are affecting Canada's agricultural supply chain, from farm production and livestock operations to transportation, food processing and retail. Using an assumed 80% increase in diesel prices from pre-Iran war levels, FCC estimates Saskatchewan grain producers could see crop margins reduced by $14 to $21/acre, depending on soil zone. That scenario compares diesel at $1.18/litre before the war with $2.13 this autumn. For a 5,000-acre farm, the additional fuel expense would range from $68,000 to $106,000. In Ontario, FCC estimated that an equivalent increase in diesel prices, from $1.28 to $2.30, could reduce corn and soybean margins by $16 to $30/acre, depending on crop and tillage s

Saskatchewan Harvest Virtually Now Complete

Mostly dry weather this past week pushed the 2026 Saskatchewan harvest to near completion. The weekly crop report on Thursday pegged the provincewide harvest at 97% complete as of Monday, up 4 points from the previous week and slightly behind 99% last year. Favourable weather allowed producers to make good progress, leaving only a small number of acres of later-seeded crops still standing, the report said. Harvest is furthest advanced in the southwest and west-central regions, where 99% of crops have been combined. The northern regions are 97% complete, followed by the east-central region at 96% and the southeast at 95%. Most major crops are now almost entirely harvested. Spring wheat, durum, barley, lentils and field peas are all 99% complete, while oats are 98% finished and canola is 96% done. The harvest of fall rye, winter wheat, triticale, mustard and chickpeas is complete. However, some later-maturing crops remain further behind, including flax at 88%, canary seed at 92%,

Understanding and Applying Canola Disease Diagnostic Results

Disease testing through Canola Diagnostic Services can confirm which diseases are present in a field, but knowing how to act on them can be challenging. The real value of diagnostic testing is understanding what those results mean and using that information to make informed management decisions to protect future canola crops. Blackleg and Verticillium In Manitoba Canola Growers’ Diagnostic Testing, blackleg and verticillium stripe results are combined into a single report. For each stem analyzed, the report indicates whether blackleg and verticillium stripe were detected. For verticillium stripe, the report includes an estimated DNA load and an infection category. DNA load reflects the amount of pathogen DNA detected in the sample and can vary depending on plant maturity at sampling. The infection category provides a general indication of disease presence, but it cannot be linked directly to yield loss as the relationship between infection and yield loss is still being researched.

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service