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: 55

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

Central Ontario FS Expands Grain Network with Acquisition of Haley's Elevator in Burford

ag news,farm news,Central Ontario FS,Haley's Elevator,Burford,Ontario

Preparing for Farming Uncertainty

Farm Management Canada has introduced a national strategy to improve risk management education and communication, helping producers build long-term resilience and adopt proactive planning.

Canola industry encouraged by outcomes from Energy and Mines Ministers’ Conference

Canada’s canola industry welcomes the outcomes of last month’s Energy and Mines Ministers’ Conference, particularly the Ministers’ commitment to strengthening Canada’s energy security and expanding domestic biofuel production.

Creating jobs, reducing waste on Sunshine Coast

A $1.5-million investment in Sechelt will create new jobs, convert organic waste into valuable products, and provide more high-quality soil for Sunshine Coast businesses by helping Salish Soils grow its manufacturing operations. “When local businesses grow, communities benefit through good jobs, new opportunities and a stronger local economy,” said Ravi Kahlon, Minister of Jobs and Economic Growth. “Supporting Salish Soils’ expansion aligns with our Look West goals. We're helping create jobs on the Sunshine Coast, while backing an Indigenous-owned company that is finding innovative ways to create new economic opportunities for this province.” As part of B.C.’s Look West strategy, the Province is providing as much as $300,000 through the BC Manufacturing Jobs Fund toward a $1.5-million capital investment that will help Salish Soils expand its business and transform more organic waste into high-quality compost, soil, mulch and aggregate. These products can serve a range of customers on

Protecting Chinook salmon in Salmon River with temporary order

As severe drought conditions continue to affect river levels in the Thompson Okanagan region, a fish population protection order will help protect endangered Chinook salmon in Salmon River by temporarily restricting water use for forage crops and identified industrial purposes. Government, local communities, farmers and partners have been working together to support water conservation and voluntary irrigation schedules. Despite significant efforts, Salmon River has had persistent low streamflow that are threatening the survival of spawning chinook populations. During the past week, flows have been well below the minimum flow threshold required to support fish population survival and continue to pose a significant risk to fish survival. Effective Tuesday, July 28, 2026, 456 surface-water and groundwater licences and transitioning groundwater users in the Salmon River watershed are affected by the order to stop using water for irrigation of forage crops as well as lawns, fairways and

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service