NEWS HIGHLIGHT
Business risk management report
Business risk management (BRM) payments account for $ 3.5 billion in government spending. Data show that payments have increased over the last several years, yet farm incomes have remained flat. This suggests that, if the program’s intent is to support or stabilize farm incomes, it is not meeting its target.
Sept. 17, 2010 – Business risk management (BRM) payments account for $3.5 billion in government spending. Data show that payments have increased over the last several years, yet farm incomes have remained flat. This suggests that, if the program’s intent is to support or stabilize farm incomes, it is not meeting its target.
A new report, released by the George Morris Centre, examines the structure of Canada’s primary agriculture sector and the disconnect between farm income and BRM spending. The report’s author, Al Mussell, also suggests that business risk management discussions must be placed into a broader context in terms of agricultural policy development.
“The focus on BRM in discussions on agricultural policy crowds other elements off the agenda and ignores real tradeoffs that must occur,” according to Mussell. These elements include agricultural sustainability and increased demands on the food system, improvements in the product approval regulatory system, and improvements in marketing regulation.
Mussell concludes by suggesting an alternative structure to the business risk management program, a multi-pronged approach based on defined farm structure targets.
Click to download the George Morris Report.
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