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: 45

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

Sask Farmer Say he Knows Why Fertilizer Companies Come Out Ahead When Markets are Disrupted

As fertilizer prices remain volatile, one Saskatchewan farmer argues the system is stacked against producers.

U.S. ethanol industry sets its sights on the world

Canada remains the top export market for U.S. ethanol, purchasing 757 million gallons of the fuel in 2024-25. The country blended the fuel at a 10 per cent level (E10) nationwide last year, with some provinces adopting an E15 mandate. “As they continue to move to E15, they could be our first billion-gallon market,” Ryan LeGrand, president of the U.S. Grains and Bioproducts Council, told delegates attending the U.S. Department of Agriculture’s 102nd annual Agricultural Outlook Forum. The United States shipped out a record 2.13 billion gallons of ethanol around the world in 2024-25, up from the 1.75 billion gallons exported the previous year. LeGrand said the goal is to continue expanding exports until the country is fully using its two billion gallons of excess production capacity. There are plenty of promising markets, but Mexico tops the list. The country passed an E10 mandate in 2017, but it was later struck down by the courts due to a technicality. Mexico’s new president, Clau

Secretary Naig, Iowa 4-H, Iowa FFA Announce Statewide Tree Planting Initiative in Honor of America250

Iowa Secretary of Agriculture Mike Naig, in collaboration with Iowa 4-H and Iowa FFA, today announced a statewide tree planting initiative in honor of America’s 250th birthday. The youth-driven initiative aims to plant 250 trees across Iowa in 2026, connecting students with the state’s agricultural heritage and a commitment to stewardship and service. The initiative encourages Iowa youth to take an active role in conserving the land that has sustained generations of farmers while celebrating the values that have shaped our nation and our communities. “Planting a tree is a simple act that benefits future generations,” said Secretary Naig. “Through this initiative, Iowa 4-Hers and FFA members have an opportunity to honor our nation’s history while strengthening their communities. I encourage chapters and clubs across the state to join us in celebrating this milestone moment in our nation’s history by planting an official A250 tree in their communities that will live on for generations.

EMILI celebrates women producers during International Year of the Woman Farmer

2026 is International Year of the Woman Farmer, celebrating the essential, and often unrecognized roles that women play across the agrifood system. This International Women’s Day, EMILI is spotlighting six women producers who play an integral role in Canadian agriculture.  Over the past few years, we’ve had the privilege of connecting with several women who play an integral role on farms as part of our This is Agriculture campaign. Read more about each woman below, and follow the links to read their whole story. Jordyn Wiebe Jordyn Wiebe grew up on her family’s farm, J.P. Wiebe Ltd., in MacGregor Manitoba. She spent her childhood working odd jobs to help the farm’s potato operation, and while she initially began her career off the farm, she was drawn back to her roots when she returned to become J.P. Wiebe Ltd.’s bookkeeper and farm and food safety manager. Read Jordyn’s story here. Jill Verwey Jill Verwey lives and breathes agriculture, holding roles as the office manager for Ver

Ontario Veterinary College at U of G Names New Dean  

The University of Guelph is pleased to announce the appointment of Dr. Julia Montgomery, dean of the? Ontario Veterinary College (OVC).

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service