Annual Conference of Federal-Provincial-Territorial Ministers and Deputy Ministers of Agriculture

  2. Newsroom

BACKGROUNDER 1: PROPOSED CHANGES TO BRM PROGRAMS – WHAT THEY MEAN FOR PRODUCERS

At their June meeting, federal, provincial and territorial ministers endorsed moving forward with three key changes to Business Risk Management (BRM) programs:

       
  • Development of a new catastrophic disaster program.
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  • Implementation of a new margin-based program to stabilize income.
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  • A review of Production Insurance.
       
                                                                                                                                                                       
           

Proposed change

           		            

What does it mean for producers?

           
           

New catastrophic disaster assistance program

           		            

A new and separate disaster assistance program with dedicated funds and clearly defined parameters will be developed to provide producers with predictable support and to deliver funds quicker than already-existing programs.

           

 

           
           

New margin-based program to stabilize income.

           

 

           		            

Both levels of government will work to address key issues producers have raised such as predictability, bankability and complexity through a variety of changes.

           

New Inventory Valuation method

           

Under the Canadian Agricultural Income Stabilization (CAIS) program, year end prices are used to value inventory. A new method is proposed which would use beginning and end of year prices. For producers, this means losses would be reflected in the program year in which the loss occurred.

           

Broader negative margin coverage

           

With the proposed change, producers with negative reference margins will be eligible provided they have three positive years in their five-year reference period; there would be no limit on the number of negative margin payments.

           

Improvements to advances

           

Targeted advances are proposed so that producers who are in disaster situations can access stabilization funds quicker and through a simpler process.

           

Cash Advance Programs

           

The Spring Credit Advance Program and the Advance Payment Program are being combined into a single program available through the year with higher limits and increased availability to more commodities including livestock.

           

Program delivery improvements

           

National performance indicators and delivery improvements – such as on-line calculators for estimating benefits, simplified forms, enhanced predictability of structural change, and a reduction in the amount of information producers must submit – will be created with the producer in mind.

           

 

           
           

Production Insurance program review

           		            

A national review of the program will identify gaps and recommend options for enhancement so that producers can benefit from an improved Production Insurance program.