2019 Top Risk Concerns & Strategies in Canadian Ag Production
Two thirds (67%) of Canadian producers indicate high concern over marketing risk for their operation.
Across ag production sectors, there is consistency in the factors that pose the greatest concern to producers within each risk category. Specifically, top concerns include weather, commodity price risk, sufficient working capital, new laws / regulations, and workplace safety.
Top strategies to mitigate risk include price guarantee contracts, record keeping, insurance, and government programs with nearly six in ten producers specifically indicating the AgriInvest program.
KEY FINDINGS
1. There is consistency in the factors that pose the greatest concern to producers across ag production sectors.
2. More than half of producers are highly concerned with marketing (67%), production (60%), and financial (53%) risk for their operation.
3. Two thirds of producers indicate concern over the risk of new laws / regulations, especially producers who are primarily involved in dairy production (73%).
4. Top risk management strategies include price contracts, record keeping, insurance, and government programs.
5. Larger scale operations are more likely to leverage risk management strategies including government programs and professional services.
Canadian ag producers.pdf
RESULTS BY SECTOR
Dairy sector.pdf
Fruits Vegetable and Greenhouse sector.pdf
Grains and Oilseeds sector.pdf
Hogs sector.pdf
Other animals sector.pdf
Poultry sector.pdf
Additional insights from the study are also highlighted on FCC's Ag Economics blog post.
BACKGROUND
In July 2019, FCC Vision featured a survey to understand the top risk concerns and strategies currently facing ag producers in Canada.
The survey was sent to an online sample of 2000 Vision panelists from across Canada who are primarily involved in ag production and are considered a key decision maker for their operation (or in a management type role). A total of 1363 panelists took part in the survey representing a 68% response rate.
STUDY OBJECTIVES:
1. Understand producers' overall level of concern with the five main types of risk:
Production risk: weather, disease, pests, and other factors that affect both the quantity and quality of commodities produced
Marketing risk: uncertainty about the prices received for commodities or the prices paid for inputs
Financial risk: rising interest rates, prospect of loans being called by lenders, and restricted credit availability are examples of financial risk
Legal risk: uncertainties surrounding laws & regulations, contractual arrangements
Human risk: factors such as farm safety / human health or personal relationships that can affect farm business
2. Pinpoint risk factors of concern for producers, and
3. Identify strategies producers have in place to manage risk.