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Growing Forward 2 AgriRisk Initiatives program

Growing Forward 2 AgriRisk Initiatives program. AgriRisk Initiatives (ARI) – Background and Objectives. New five-year, Business Risk Management (BRM) program under Growing Forward 2;

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Growing Forward 2 AgriRisk Initiatives program

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  1. Growing Forward 2 AgriRisk Initiatives program

  2. AgriRisk Initiatives (ARI) – Background and Objectives • New five-year, Business Risk Management (BRM) program under Growing Forward 2; • Facilitate the development and adoption of new private sector or producer-funded agricultural risk management tools; • The ARI program consists of two streams: • Research and Development, and • Administrative Capacity Building

  3. Research and Development (R&D) • Funding • $3 million per year in federal-only funding • Objective • Support stakeholder groups in developing new risk management tools to fill identified gaps • Increase the participation of the private sector in providing risk management tools • Projects involve • Risk assessments, including sector risk profiles and benchmarking analyses • Tool development • Insurance-based (e.g. price, mortality, business interruption) • Enhancing market returns (e.g. price discovery, hedging and options, etc.)

  4. Administrative Capacity Building (ACB) projects • Funding • $8 million available federally to be cost-shared with the provinces/territories • Objective • Support pilot administrations or early years of delivering new tools • Private sector or industry-led (not-for-profit) administrations • Provincial-territorial governments • Demonstrate viability of new tools and attract long-term private sector support • Projects involve • Industry consultation and product fine-tuning • Launch strategy, communications products and advertising • Securing financial requirements to launch the solution (e.g. licensing fees) • Securing entity delivery infrastructure (e.g. office space, materiel, IT systems) • Day-to-day costs of delivery (e.g. salaries, office expenses)

  5. Key principles guide both the R&D and ACB projects • Producers to pay 100% of the cost of new coverage (e.g. premiums for insurance coverage) • Responsive to producers’ demonstrated need and willingness to pay for a new risk management tool • Develop and deliver viable tools that are consistent with BRM principles (e.g. limit trade implications, distortion of production or marketing decisions, etc.) • Look to share benefits (e.g. products, processes, data, expertise, etc.) that are transferable to other provinces and territories, or to projects for other commodities • Consider the role of private sector in delivery of new tools • Time-limited requirement for government funding support

  6. Conclusion By facilitating the development and adoption of private-sector or other producer-paid agricultural risk management tools, the AgriRisk Initiatives program will increase producers’ ability to address the risks they face.

  7. ARI – Contact Information • Inquiries regarding the AgriRisk Initiatives program can be directed to: • www.agr.gc.ca/agririsk • Ari-iar@agr.gc.ca • 1-877-246-4682 (toll-free)

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