New report says proactive risk management is the key to unlock Canadian agriculture’s future

Adaptability and long-term resilience come from preparation

OTTAWA, Ontario, Sept. 24, 2025 (GLOBE NEWSWIRE) -- A new report released today by the Canadian Agri-Food Policy Institute (CAPI) calls for a shift toward proactive, comprehensive risk management to strengthen the long-term resilience of Canadian agriculture. Striking the Balance: Proactive Strategy versus Reactive Response authored by Farm Management Canada urges government and industry to look beyond traditional Business Risk Management (BRM) programs and embrace a modernized, nationally aligned approach that equips farmers to better anticipate and manage risk; not just recover from it.

“Too often when risk management is talked about in agriculture policy it is only about business risk management programs, but risk management is much more than that,” said Tyler McCann, Managing Director, CAPI. “This paper highlights the proactive and reactive ways that farmers can approach risk management and encourages policies that support more proactive risk management. Changing the risk management policy landscape so that it aligns with how farmers approach risk management is essential to effective risk management policy.” 

The report provides a practical, farm enterprise-wide framework—spanning People, Finance, Markets, Production, Business Environment, and Business Strategy—to help align policy, support services, and farm practices around prevention and preparedness when it comes to managing farm risk. It highlights how over-reliance on reactive BRM programs can discourage alternatives and leave critical capability gaps at the farm level, while proactive planning and skills development can build confidence, reduce stress, and improve performance and long-term returns.

“It’s no secret that Canada’s farmers are under immense pressure,” says Heather Watson, Executive Director, Farm Management Canada. “We need to acknowledge these are not just business risks; these are human risks. A farmer who constantly feels one disaster away from collapse is a farmer who’s not able to think and act strategically, which presents a major problem for long-term farm and sector-wide prosperity. When farmers are equipped with the right tools, education, and support, they are empowered to navigate uncertainty rather than paralyzed by it.”

Key takeaways from the report include:

1. Canada’s agricultural policies have fostered producer dependency on BRM programs while discouraging proactive approaches.
2. Investing in proactive risk management is essential to long-term sector resilience and growth.
3. Decades of declining investment in research, knowledge transfer, infrastructure, and marketing have weakened proactive capacity.
4. A modernized national risk management framework and strategy are urgently needed.
5. National farm data harmonization is a critical enabler for better policy and farm-level decision-making.
   
   

The report concludes with several policy recommendations including the creation of a national risk management-focused policy lens and framework supported by a national risk management task force and research network, boosting farmer capacity through training and advisory support and incentivizing comprehensive risk assessment and planning, and lastly, accelerating national farm data harmonization to unlock benchmarking capacity and improve BRM program delivery.

Findings from the report will be explored during CAPI’s third annual Exchange conference, Canadian Agri-Food in a Risky World, taking place October 1–2, 2025 at the National Arts Centre in Ottawa. Farm Management Canada will be hosting an interactive workshop during the Conference called Proactive Solutions for Managing Farm Risk, designed to put the report findings into practice. For more information and to register for the CAPI Conference, visit capi-icpa.ca/canadian-agri-food-in-a-risky-world/.

The full report, Striking the Balance: Proactive Strategy versus Reactive Response, is available on the CAPI website (https://capi-icpa.ca/explore/resources/striking-the-balance-proactive-strategy-versus-reactive-response) and the Farm Management Canada website (https://fmc-gac.com/programs-services/research-analysis/).

Funding Acknowledgement
This project was funded in part by Agriculture and Agri-Food Canada under the Sustainable Canadian Agricultural Partnership’s AgriCompetitiveness Program. The findings, interpretations, and conclusions are those of the author(s).

About CAPI
The Canadian Agri-Food Policy Institute (CAPI) is an independent, non-partisan, not-for-profit organization founded to stimulate policy thinking on complex and interconnected issues in Canada’s agri-food system. Guided by a diverse board, CAPI’s work reflects systems thinking, researching complex and interconnected food issues, bringing diverse voices to the table — from across agri-food supply chains, governments, researchers and among adjacent sectors.

About Farm Management Canada
A national umbrella for Canadian farm business management activity, Farm Management Canada is the only organization devoted exclusively to the development and delivery of advanced business management information, tools and learning opportunities to position Canada's farmers for success. Programs and activities are made possible through support from generous sponsors and supporters including Government, private industry, the non-profit sector and academia. 

Media contact
Elise Bigley, Director of Strategic Projects, Canadian Agri-Food Policy Institute — bigleye@capi-icpa.ca
Mathieu Lipari, National Risk Management Lead, Farm Management Canada — mathieu@fmc-gac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8b352e14-91cf-4852-adf5-48323510eadd

Striking the Balance: Proactive Strategy versus Reactive Response

New report says proactive risk management is the key to unlock Canadian agriculture’s future Adaptability and long-term resilience come from preparation.

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