Having the right risk management coverage to meet the unique needs of a farm is important; and application and renewal season is a good time for producers to make sure their coverage is a good match to what their farms look like today. As a farm evolves and the industry changes, so can coverage needs.
Renewal time is the opportunity to assess coverage, but it’s also important to carefully review coverage details since they are based on last year’s business. Confirming information is accurate, as well as reflective of how each individual farm operates today, ensures producers only pay for the coverage they need and receive the right compensation in the event of a claim.
Before deciding on this year’s coverage, producers should ask themselves some key questions:
- What changes have they made to their business?
- What risks does their farm face this year?
- Are they taking advantage of the right programs to protect their farm business?
- Will their current coverage protect them if they experience a severe, unexpected loss?
- Are there any additional programs they should consider?
- Do their chosen coverage levels still provide the protection that’s best for them?
- Are they familiar with recent program enhancements that reflect a changing industry?
- What’s happening in their industry that could affect their business?
When making decisions about program coverage for the year ahead, it’s important for producers to carefully consider all the risks their farm faces. The federal and provincial governments provide a comprehensive suite of business risk management programs to help mitigate these risks. Producers can maximize their coverage by enrolling in these programs. Different programs cover different risks:
|Unexpected, large declines of income|
AgriStability – Protects the farm income as a whole instead of one commodity at a time. It's an affordable option: producers can get coverage for a low fee of $315 for every $100,000 of their reference margin.
How it works: Producers receive a payment if their farming income falls below 70 per cent of their farm's recent average income.
Application and renewal dates: April 30
|Small declines in income|
AgriInvest – Helps producers recover from small income shortfalls, or to make investments to reduce their farm's risk.
How it works: Producers receive a matching government contribution based on their annual deposits into an AgriInvest account. Their deposit is a percentage of their allowable net sales.
Application and renewal dates: September 30
|Low yields and crop losses caused by weather, wildlife, infestation and disease|
Production Insurance –
Celebrating 50 years of value - Guarantees producers a level of production in case they experience challenges beyond their control. More than 90 plans are available based on yield, dollar value or acreage loss.
How it works: Producers receive a payment when an insured peril causes their yield to fall below their guaranteed production.
Application and renewal dates: In the spring for most plans
|Low commodity prices and high production costs|
Risk Management Program – Helps producers offset losses caused by low commodity prices and rising production costs. It's available for grains and oilseeds, cattle, hogs, sheep, and veal
How it works: Producers receive payments if the market prices fall below their chosen support level.
Application and renewal dates:
- RMP for livestock: April 1
- RMP: Grains and Oilseeds: May 1
|General farm losses or expenses|
SDRM: Edible Horticulture – Is part of RMP and helps producers mitigate general risks associated with their farm business.
How it works: Producers receive a government contribution based on their annual deposit into an SDRM account. Their maximum deposit is a percentage of their allowable net sales.
Application and renewal dates: Starting in September