Cultivons l

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Growing Forward 2 AgriRisk Initiatives program
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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

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Research and Development (RD)

• 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.)

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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)

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Key principles guide both the RD 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

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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.

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ARI Contact Information

• Inquiries regarding the AgriRisk Initiatives
  program can be directed to
• www.agr.gc.ca/agririsk
• Ari-iar_at_agr.gc.ca
• 1-877-246-4682 (toll-free)