Protect your farm’s future with risk management resources

Getting support

Fortunately, there are resources designed specifically to help farmers manage these risks. Government programs like AgriStability and AgriInvest are options that are available to most farms, offering financial support when margins drop due to unexpected events. In addition, many provinces also have their own Business Risk Management (BRM) programs, like crop/production insurance. Private options can also play a role, offering coverage that fits your specific needs.

At their core, these programs aim to transfer risk off your balance sheet and provide a safety net when unfortunate incidents happen. For instance, AgriStability offers protection by covering a portion of the loss when your farm’s margin falls below your historical average. Similarly, AgriInvest allows you to build up savings that can be used in tough times, while provincial programs and private insurance options provide additional protection against specific risks, like extreme weather events.

The end result of transferring your risk this way is not only stability, but peace of mind — knowing that if disaster strikes, you have a plan in place to help cover your losses.

Help for farmers to manage risk

For many farmers, the idea of developing a risk management plan can be overwhelming. With so many variables in play — like weather events, crop yields, and fluctuating market conditions — knowing where to start isn’t always straightforward.

The good news is that there are services that can help — like MNP’s Agricultural Risk Management Resources (ARMR) — that are available to guide you through the process, helping you to make informed decisions and to put the right protection in place.

Typically, advisors will kick the approach off with a focused conversation, including an assessment of your farm’s specific risks, taking into account your farm history, financial situation, and potential vulnerabilities. Once the assessment is complete, a customized plan is developed.

This plan outlines the strategies you can adopt to reduce your risks before they happen, as well as which government programs and insurance options you can use to transfer some of that risk. It also examines different scenarios, to ensure that you are satisfied with the level of risk you are taking. Having a plan in place helps minimize risks and allows you to effectively manage their impact if they do arise, ensuring your farm remains protected and stable.

Throughout the year, your advisors will offer ongoing support, helping you to adjust your strategies as needed. Whether it’s signing up for a government program, identifying potential risks, or making sure deadlines are met, these resources will make sure your farm is prepared and protected.

The benefits of proactive risk management

There are many reasons why adopting a proactive approach to risk management is essential for today’s farmers. The most obvious is financial security.

When you know your risks and have a plan to mitigate them, the effect will be reflected in your financial returns. While it’s difficult to quantify the full impact of risk management, some farms have seen substantial financial benefits just by ensuring they were participating in the right programs, like AgriStability.

But the benefits go beyond dollars and cents. By engaging with resources like ARMR, you will gain peace of mind — a key component to running a successful farm. Knowing you have a plan and a safety net allows you to focus on running and growing your operation, instead of losing sleep over what could go wrong.

It’s also not uncommon for farmers who work with a risk management advisor to feel more confident in their decision-making abilities. Whether it’s expanding your operation or investing in new technology, having a clear understanding of your risks and a plan to manage them allows you to move forward with confidence. And while the goal is always to reduce your risks, having a plan in place also means that, should disaster strike, you’ll have the protection you need to get through it.

Stories from the field

To understand how ARMR works in practice, let’s look at some examples.

Consider the case of a Canadian greenhouse that was facing some difficult times after losing a key retail contact. With guidance from our ARMR advisors, the operation was able to recover through government support programs, allowing them to continue operations despite the setback.

Our second case is about a large grain operation in Saskatchewan who had an excellent crop coming in until, overnight, thousands of acres of 6-foot-tall corn stalks were razed to the ground by a violent storm with baseball-size hailstones. It left nothing but stubs in the ground. There was nothing they could have done to prevent the outcome. However, because of good planning, they had analyzed potential scenarios with their advisor and selected the appropriate combination of insurance and BRM products, which allowed them to recover millions in lost revenue.

These examples highlight the benefits of working with an ARMR advisor and developing a structured risk management plan. It can sometimes be the difference between surviving — or even thriving — during a difficult year or drowning in debt and having to reassess the farm’s viability.

Get started with ARMR

If you’re interested in exploring how our ARMR service line can help you, the first step is to reach out for an initial consultation. This service is available to all agricultural producers, regardless of farm size or type. Whether you’re running a small family farm or a large-scale commercial operation, ARMR was designed to offer the support you need to safeguard your livelihood.

Once the process has begun, our advisors offer ongoing support and monitoring, to make sure your risk management plan remains effective as conditions change. From adjusting to new market trends to preparing for the upcoming growing season, the process is designed to offer long-term protection and stability.