Ottawa-Ongoing research by the Canadian Agri-Food Policy Institute (CAPI) has found that farming really needs to step up its game and that a significant difference in the level of political, government and industry leadership is required.

In a report on the second phase of its ongoing Agri-Risk study, CAPI said its surveys and dialogues also confirm that there is a need for a better approach to risk management and growth in the sector.

Tyler McCann, CAPI’s Managing Director, said “The insights within this report should serve as a foundation for further dialogue amongst policy makers, influencers and other stakeholders about how the risks and opportunities should inform the future of agriculture policy.

“There is no simple or single solution, but better policies and outcomes will come from increased dialogue and debate within the sector about these issues.”

The sector needs to talk about “what is right, what is wrong and what needs to change going forward. Continuing to putter along is going to be devastating.”

The agriculture and agri-food sector is made up of people whose livelihood is at risk of weather, markets, value-chains disruptions and more, he said. “Producing food, feed, fibre and fuel is not for the faint of heart. It is a sector that sees the proverbial glass as half full. While optimism is a vital component of the sector’s success, there is a need for a heavy dose of realism in an increasingly complex and changing world.”

The Agri-Food Risk Report aims to provide a better understanding of the drivers of the optimism and the perception of risks and to assess their impacts on the future of the agri-food policy landscape in Canada. The results gained so far in the ongoing work “highlight an increasing need to think differently about agriculture policy and point to some of the opportunity costs of the status quo,” he said.

Current agriculture policy reflects a framework “that was a major accomplishment when it was agreed to 25 years ago but has not kept pace with changes in the sector since then. It includes an apparent consensus that better is possible, but a resignation that better may not be achievable.”

One of the challenges is that the status quo is generally seen as pretty positive. Export targets have been surpassed, labour productivity is growing and farm net worth is increasing. But those accomplishments require a reality check. Export values and labour productivity are impacted by global increases in commodity prices, net worth is impacted by increasing land prices. Underneath this good news is a lot of risk and a lack of a plan for managing it, the report said.

No one would invest in a business without a plan, but one of the common refrains during the dialogues is that Canadian agriculture and agri-food lacks one. This report aims to further the dialogue on the need for that plan by highlighting the risks that need to be mitigated for the sector to reach its full potential.

The status quo of Canadian agriculture and agri-food is good, but it could be better. The first step may be moving from optimism to realism. “One of the greatest barriers to better outcomes in agriculture and agri-food is a lack of action on solutions that are broadly agreed to. There is often too much comfort with the status quo.

In the field, on the factory floor and in domestic and global markets, change is relentless, and risks are compounding. But the survey demonstrated stakeholders believe “there is too much complacency in our policy frameworks, regulatory machinery and sectoral governance. Canadian agri-food is a big sector in a small country, an exposed sector in a threatening world, and a complex sector easily sidelined from mainstream attention except when there is a crisis.”

While investor tolerance for more risk is limited, agrifood can be better protected from risk, better enabled for sustainable growth and better able to contribute to Canadian well-being. “Something must be done, but it is too easy to do nothing. And each person and organization can have an impact.”

This news item prepared for National Newswatch