CFA launches pilot project to develop new insurance tool
Since late 2015, CFA has been working in partnership with its associate member, Farmers of North America – Strategic Agriculture Institute (FNA-STAG), to develop and launch a functional and successful accounts receivable insurance tool. Instances of non-payment or delayed payment continue to represent a significant source of risk for Canadian producers.
The goal is to provide producers across Canada with an additional private-sector tool to supplement existing credit risk mitigation options — providing producers with confidence when looking to sell to buyers, domestically and abroad. This work has been initiated as a pilot project with the intention of seeing it expanded to a national program for all commodities.
CFA’s project team is reaching out to agricultural industry organizations, the insurance community, and financial institutions to understand their needs and develop a robust and flexible accounts receivable insurance tool for all Canadian producers.
With the diversity of products and market segments that exist in Canadian and global agricultural markets, much of this work is focused on understanding the marketing practices, accounts receivable risk awareness, and the availability of other credit risk mitigation tools. CFA aims to increase the range of tools available to Canadian producers, as they continue to find and establish new marketing relationships at home and around the world.
For more information, contact CFA’s Director of Business Risk Management and Farm Policy, email Scott Ross, or call 613-236-3633 ext. 2324.