Government of Canada Helps Grain Industry Reduce Financial Risk
Posted on: July 4, 2018 2:39 pm
July 4, 2018 – Picton, Ontario – Agriculture and Agri-Food Canada (AAFC)
Canada’s grains and oilseeds sector is a global supplier of high quality, safe and nutritious agri-food products and is a major economic force in Canada, creating jobs, wealth and opportunities. The Government of Canada is committed to working with industry partners and the private sector to explore and develop new risk management tools that meet the needs of Canadian farmers.
Member of Parliament for Bay of Quinte, Neil Ellis, on behalf of Agriculture and Agri-Food Minister, Lawrence MacAulay, announced a federal investment of up to $355,710 for two projects funded through AgriRisk Initiatives under the Growing Forward 2 agreement.
The investment included $197,400 to Soy Canada to develop a profile of the soybean industry, including the current and potential risks producers face, both short and long term.
In another project, $158,310 was provided to the Grain Farmers of Ontario (GFO) for a feasibility study concerning revenue declines not currently covered under the current suite of business risk management programs.
Today’s announcement is part of the Minister’s cross country “Growing Canadian Agriculture” tour which started in Quebec last week and ends in British Columbia on July 17.
The Minister is meeting with farmers, processors and industry leaders, as well as participate in rural agricultural events, to highlight strategic federal agricultural investments and programs – including those recently launched under the Canadian Agricultural Partnership—and how they will help to build an even stronger and more innovative sector for Canada.
“Canada’s grain and oilseeds industry is a competitive and efficient sector, known around the world for producing high-quality, safe and sustainable foods. Providing our farmers with the tools they need to mitigate risk helps strengthen farm businesses, creating jobs, helping to drive our economy.”
– Lawrence MacAulay, Minister of Agriculture and Agri-Food
“I am pleased that we continue to support grain and oilseed farmers in Ontario and across the country develop the tools they need to remain strong and resilient against the risks they face. Effective risk management helps farmers grow their businesses and stay competitive.”
– Neil Ellis, Member of Parliament for Bay of Quinte
“Although soybean production in Canada increased by a phenomenal 131% during the past decade, and now ranks third in terms of farm cash receipts, the continued success of the sector is directly contingent upon overcoming a series of significant challenges. The Agri-Risk Assessment and Mitigation Report not only identified and catalogued eleven notable threats, the clear ranking of the potential magnitude of each risk provides a solid benchmark for determining the future allocation of sector resources. Soy Canada is already prioritizing its resources on addressing the top two risks that were identified by the assessment: market access and protein content.”
– Ron Davidson, Executive Director, Soy Canada
“The current risk management suite of programs are due for a refresh. There is need to improve agriculture policy and programs to enhance the economic, environmental, and social contributions of farming in Canada. The revenue risk management project funded by AAFC is an important step to help define, not only the issues of modern farming, but to start to explore updated and new programs that will work for today’s grain and oilseeds farmers in the same way Crop Insurance works.”
– Markus Haerle, Chair, Grain Farmers of Ontario
The Canadian Agricultural Partnership is a five-year, $3 billion investment by federal-provincial and territorial governments (FPT), which will strengthen the agriculture, agri-food and agri-based products sector, ensuring continued innovation, growth and prosperity. The Partnership replaced Growing Forward 2 (2013-2018) in April 2018.
Under the Partnership, producers continue to have access to a robust suite of Business Risk Management programs to help manage significant risks that threaten the viability of their farm and are beyond their capacity to manage. FPT governments will also continue to support the development of new risk management tools through the AgriRisk program.
Soy Canada is a national organization that represents every group involved in the development, production, handling, processing and transport of soybeans. Soybeans contribute $5.6 billion to Canada’s Gross Domestic Product.
The Grain Farmers of Ontario (GFO) is the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean, and wheat farmers. The crops cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts and create over 40,000 jobs in the province.
Director of Communications
Office of the Honourable Lawrence MacAulay