Grain Farmers of Ontario is conducting an analysis of BRM programs with funding from Agriculture and Agri-Food Canada’s AgriRisk program. The analysis involves assessing and developing new program designs, as well as determining the cost of each option, based in part on a survey of approximately 1,000 grain and oilseed producers on their individual preferences for risk coverage — specifically what program type they favour most, and how much they are willing to pay.
Spokespeople from the provincial organization say this feedback has already helped formulate new BRM models that “explore revenue and margin-based products covering risk in the event of 15 to 30 per cent revenue decline.” This decline is considered by grain and oilseed producers to be a major area of risk, though one not currently covered by AgriStability.
The details of GFO’s proposed program, they say, are “still being tested and refined.” Additional analysis using real data is a critical next step, and the overall program is being designed to cover either revenue or margin declines. Whether or not the program is strictly private — where producers themselves top-up risk programs — or a private-public cost sharing partnership with government also remains to be seen. Coverage levels, what upper or lower coverage limits will be, as well as other considerations, are also unknown at this stage.