How Agriculture Insurance Can Benefit Farmers

Farmer’s are eagerly waiting for fields to dry so that they may be able to work the land after a long, cold winter. This is the same story for farmer’s across Ontario, whether they are working in cash crops or animal husbandry as a cold and wet spring has made it almost impossible to utilize the lands that are available to them. While they wait for waters to recede and take advantage of sun-filled days although few and far between, they can rest assured that their insurance coverage will help in the event of unforeseen damages.

Agriculture in Canada

Agriculture plays an integral role in the backbone of the Canadian economy. Canada is the world’s fifth largest exporter of agricultural products, and this sector is responsible for over 2.3 million jobs. The Canadian Agriculture and Agri-Food department within the Government of Canada works to ensure that those contributing to this sector are adequately represented and have access to the information they need when they need it most.

Learn more about the agricultural footprint in Canada!

Challenges Farmer’s Face

What happens, however, when damages or losses occur due to extreme weather patterns, fire, disease, and more? There is no other business that is dependant on the day to day weather, operational challenges, and fluctuations in supply and demand. This makes for a difficult task in planning for the future as much of the industry remains to be unpredictable. Farmer’s are also held to a higher standard of compliance as well, affecting the purchasing and selling of crops and livestock.

Statistics Canada in May released its farm income report for 2018 and it paints a dismal picture of the state of agriculture since net farm incomes in 2018 declined nearly 21 percent to $11.6 billion, one of the largest drops ever recorded in Canada, according to the Western Producer.

Seed costs are high. Land costs are high. Machinery costs are very high. Commodity prices, which farmers cannot set, are low, generally. The tumult, uncertainty and general distrust surrounding trade with China continues without any signs of resolution. (Toban Dyck, Financial Post)

With so many factors playing a role, how can farmer’s protect themselves and their families when a bumper crop seems to be out of reach?

Insurance Protection

Insurance allows for farmer’s to be able to get the coverage they need, no matter the circumstances. Whether standing water has caused crops to decay on the fields, or drought has reduced hay production, making it more challenging to feed livestock, these challenges not only affect farmers but they impact Canadians as well. Food production is essential to Canadian growth and development, making the challenges that farmer’s face, challenges that we must all consider.

If you are working in the agricultural sector and would like to discover the coverage that is available to you, contact our team. We work specifically with you to help your farm remain protected in many ways that may not have been considered before!