Ottawa—The federal and provincial agriculture ministers must recognize the current Business Risk Management (BRM) programs, especially Agri-Stability were designed for a different era and sorely need changing. That's the conclusion that veteran agriculture economists Al Mussell and Douglas Hedley reach in a lengthy examination of the new reality BRM faces and why farm groups across the country are united in their calls for changes. AgriStability and its predecessors were developed “in an environment without significant or repeated U.S. ad hoc support, and with broadly declining agricultural support more generally-especially most distorting support-and very pronounced reduction in support for Canada and the US,” they said. In the U.S. and elsewhere, “the elements are lining up to present much greater risks to farm incomes than have existed in the past,” they said. “The risks are such that they should be viewed as both the risks to farmers of much lower or insufficient incomes in farming, and the risks that existing capacity cannot be maintained in agri-food going forward into the future.” Canadian agrifood is at risk of being overwhelmed without changes to BRM, they said. The government lacks the funds to match the U.S. programs and if it could, it could undermine its efforts to revitalize the World Trade Organization. Farm groups want reinstatement of the 85 percent trigger on losses for AgriStability and reference margin changes. “The former could help with immediate cash flow concerns and the latter would offer larger payments to some parts of the industry. Both of these measures have at best a two-year window to respond to the current trade and U.S. subsidy effects,” they said. The BRM program “depends on reasonably reliable policies and behaviour on behalf of Canada's trading partners and global competitors. That is not currently the case, and by all appearances may not be for some period of time.” Canada must plan for adversity and make BRM capable of meeting “the periodic need for cash injections to protect the economic viability of Canada's agri-food sector, and the investments made in its capacity.” The ministers should consider “greatly increased use of contingent lending by governments or their intermediaries to provide ready cash and cash flow for farms and commodity segments facing a much harsher operating environment, at low or no cost, and with highly enabling security and repayment terms.” The current Advanced Payments Program “may provide something of a template or starting point for the strategic discussion that needs to take place,” they said. As well, Canada needs to consider its foreign policy priorities, fiscal policy, WTO negotiations and the future role of agriculture in addressing climate change as part of its farm supports. The ministers “will need to provide very strong leadership in setting the boundaries for the debate and a commitment to draw in other government ministers and non-agricultural groups to make progress.” The ministers must act quickly to keep farmers from cutting production. “The sector needs recognition that governments are working on it and are not waiting for answers until after damage is done.” Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.