Grainswest - Winter 2026

Winter 2026 Grains West 32 This number will stay virtually stagnant in planned spending until at least the end of 2027, but the actual cost will depend on demand for the programs. The government’s 2025-26 estimates quantify the planned cost to run production agriculture’s individual primary risk management programs. AgriInsurance contribution payments cost $1.03 billion, AgriStability is second at $339 million, AgriInvest third at $153 million and AgriRecovery, the smallest program, at $118 million. The actual cost in 2023-24 for AgriInsurance was $1.2 billion, AgriStability was $499 million, AgriInvest sat at $200 million and AgriRecovery, again the smallest, at $181 million, although it can vary substantially based on natural disasters. Federal spending covers 60 per cent of the total cost of the programs, while the provinces pay the rest. Tyler McCann, CAPI executive director, said the numbers indicate the BRM suite is very costly, and will likely become more so. Meanwhile the government is under pressure to control the federal deficit. “On both sides, there’s pressure to say, ‘How do we get more effective for farmers managing risks and more effective for governments offering more cost- effective risk management tools to farmers?” He suggests AgriInvest could be phased out. It allows a farmer to put up to $1 million of allowable net sales (gross sales minus purchase of allowable commodities) into an account. The government will contribute a matching one per cent of the farmer’s total. For those who max it out, it’s a quick $10,000. “People do just see that as free money,” said McCann. Further, it’s not enough money to properly manage risk, though cynics may suggest it’s enough to buy a snowmobile or make an AgriInsurance payment. McCann readily admits each program has positives, but, overall, the suite isn’t a pragmatic toolbox for farmers in 2026. He offers two examples. “Farmers who use AgriStability understand it can be an effective program, but on the flip side it’s seen as complicated, not timely and not effective that way. And our participation rates are low.” He added about one- third of farmers use AgriStability, but it represents about half of Canada’s production. This demonstrates large- scale production ag utilizes the program while smaller farms don’t. On crop insurance, he asserts: “It’s probably seen as a pretty effective tool for dealing with weather issues, but if China suddenly shut the border to your product, it’s not effective there.” WHAT’S NEXT? CAPI and other agricultural advocacy groups will present ideas to build a better toolbox at this summer’s Annual Meeting of Federal Provincial Territorial Agriculture Ministers (FPT) in Halifax, N.S. There, it’s hoped ministers will collaboratively craft a high-level statement on the direction of Canada’s next agricultural policy framework, to run from 2028 to 2032. McCann is optimistic the meeting will affect real change to Canada’s agriculture risk management programs, permanently and for the better. Farmers and government must contemplate modernization, said McCann. “It’s frustrating the policy framework has largely remained unchanged for 25 years despite the fact so much has changed in agriculture. We want to offer government and the sector alternatives that should be considered and debated. We could show that better is possible when it comes to ag policy in this country.” National private sector program delivery has for years failed to materialize. From McCann’s perspective, the medium should be of little concern. “What matters is how the programs are designed and what’s that share between farmers, the government and taxpayers. But we should be open to private delivery.” Many farmers and farm groups have lobbied politicians to broaden the delivery system to include private options. In Western Canada, multiple private hail insurance providers have successfully delivered farm coverage for years. “It’s frustrating the policy framework has largely remained unchanged for 25 years despite the fact so much has changed in agriculture.” —Tyler McCann FEATURE