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: 57

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

CGC issues two licenses to start September

Companies in Sask. and Quebec received licenses recently

Irrimap Opens New Era of Smart Irrigation

Lethbridge Polytechnic developed Irrimap, a web-based tool that measures crop water use and helps farmers improve irrigation decisions, increase efficiency, and support precision agriculture practices.

Applications Open for AALP Class 22

Applications are now open for AALP Class 22, a leadership program that helps future agri-food leaders build skills, expand networks, and gain global perspectives through unique learning experiences.

CDC North Marks 75 Years of Agricultural Research and Crop Protection

What began as an 18-acre tree nursery has grown into a vital centre for plant health, disease surveillance and agricultural research in Alberta. Alberta’s Crop Diversification Centre North is celebrating 75 years of helping farmers protect their crops, confront emerging threats and prepare for the future. CDC North began in 1951 as a tree nursery on 18 acres of a former federal government fur farm outside Edmonton. Today, the 340-acre site is a hub for collaborative agricultural research, crop health surveillance and plant diagnostics. The centre now houses nine greenhouses, the Alberta Plant Health Lab, the province’s Bee Health Unit and Western Canada’s only seed potato repository. Its research plots and specialized facilities are also used by collaborators including the University of Alberta and Western Crop Innovations. “From strengthening crop health to fighting diseases and helping protect Alberta’s farmland, CDC North has been leading the way in agriculture research, crop hea

Alberta Harvest Lags as Farmers Race to Protect Crop Quality

Yield prospects remain strong across much of the province, but wet conditions and delayed crop development have Alberta’s harvest running well behind its normal pace. Alberta farmers are heading into harvest with the potential for an above-average crop—but many will need more warm, dry weather before they can get it into the bin. As of Aug. 25, just 5.6 per cent of all crops had been harvested across the province, according to the latest Alberta Crop Report. That compares with the five-year average of 15.2 per cent and the 10-year average of 12 per cent. The delayed start reflects a growing season marked by wet conditions, late seeding, slow emergence and uneven crop development across much of Alberta. Progress varies sharply by region. Farmers in southern Alberta had harvested 16.2 per cent of their crops by Aug. 25, compared with only 2.7 per cent in the Central Region. Harvest remained below one per cent in the North East, North West and Peace regions. Warm temperatures helped m

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service