Business Risk Management

CFA’s primary objective with regards to Business Risk Management or Safety Nets is to achieve a strong, predictable and bankable framework of BRM programs that provide disaster assistance and stability to producers who have incurred unforeseen loss.

Agricultural producers face extraordinary production risk – insect, disease, frost, drought, wind, and floods. Producers face further market risks as well with volatile price risk, tariff and non-tariff barriers – expected and unexpected. With extraordinary risk comes the need for extraordinary risk management tools.

While BRM programs do not build growth, they provide stability to the industry and act as a foundation for growth. That foundation requires programs to:

• address markets that are distorted by international subsidies
• be flexible to address regional and commodity needs,
• be predictable and bankable for producers, and
• maintain supply management and its three pillars as producer tools to manage risk.