Growing Forward 2 AgriRisk Initiatives program 1

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 2

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 o Insurance-based (e.g. price, mortality, business interruption) o Enhancing market returns (e.g. price discovery, hedging and options, etc.) 3

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 o Private sector or industry-led (not-for-profit) administrations o 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) 4

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 5

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. 6 Conclusion

Inquiries regarding the AgriRisk Initiatives program can be directed to: (toll-free) 7 ARI – Contact Information