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

Equipment Technician Demand Reaches New Highs

A new report warns Canada will need thousands of equipment technicians in the next decade, with labor shortages affecting dealer growth, customer service, and industry revenue.

Canada Could Add $5.4 Billion by Food Processing in the Country

Shifting 10 per cent of Canada’s raw crop exports to domestic processing could boost the economy by $5.4 billion and create 34,000 jobs, according to a new report from EY.

New herbicide for soybean producers

Growers can implement Zidua Prime into their operations for the 2027 season

Canfax Weekly Article | Report for the week of September 21, 2026

The Canfax average fed steer and heifer price closed around $292/cwt live, $2.50/cwt lower than the previous week. Fed cattle prices are at the lowest point since December 2025. Light trade was reported last week with dressed sales ranging from $486.50–$489.50/cwt FOB the feedlot. Cattle that traded were scheduled anywhere from early October to early November delivery. Western Canadian steer carcass weights have steadily increased this summer and are 2 pounds shy of their highs set back in January. Ontario was the bright spot for the Canadian fed market as their prices strengthened last week. Last week, the Canfax feeder steer and heifer price closed the week $8–$11/cwt higher. Despite higher prices, all classes of cattle are trading below last year. With good grass conditions across much of the Prairies, the yearling run has been slow to develop. Over the past week, there was a bigger offering of forward delivery calves with over 50,000 head marketed for fall delivery. In some cases,

U.S. August cattle placements fall to record low

U.S. feedlots placed fewer cattle in August than in any other August since the data series began in 1996, according to the latest Cattle on Feed report from the United States Department of Agriculture (USDA). Despite the decline, cattle and calves on feed for the slaughter market in feedlots with a capacity of 1,000 head or more totalled 11.2 million head as of September 1, up one per cent from a year earlier. August placements totalled 1.62 million head, down nine per cent from the previous year. Net placements were reported at 1.57 million head. USDA data shows it was the lowest August placement total since the series began in 1996. The report was largely in line with pre-report trade expectations, which anticipated lower placements and marketings alongside slightly higher on-feed inventories. Marketings during August totaled 1.52 million head, down three per cent from the same month last year. It was also the lowest August marketing total since 1996. Other disappearance totaled

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service