CFIB survey finds many agricultural businesses are paying more for insurance while struggling to access coverage that reflects modern farming risks.
Small agricultural businesses across Canada are facing a mounting insurance challenge as premiums climb and coverage options become harder to find, according to research from the Canadian Federation of Independent Business (CFIB).
The report highlights a growing concern among farmers, greenhouse operators, garden centres, and other agricultural enterprises that commercial insurance is becoming less accessible and less affordable at a time when the industry is confronting increasing weather, equipment, and liability risks.
Insurance has long been viewed as a critical risk-management tool for agricultural operations. However, CFIB's latest analysis suggests that many producers are struggling to find policies that adequately protect their businesses while remaining financially sustainable.
More than half of agri-business owners surveyed reported dissatisfaction with the insurance options available to them, citing limited choices among providers and concerns about coverage gaps.
The findings arrive as Canadian farmers continue to navigate rising operating costs, extreme weather events, and significant investments in land, buildings, technology, and equipment. According to CFIB, those pressures are contributing to a more cautious insurance marketplace, where insurers are becoming increasingly selective about the risks they are willing to cover.
Rising Premiums Creating Financial Strain
While access to coverage remains a concern, affordability has emerged as an equally significant issue.
Nearly three-quarters of agri-businesses surveyed reported insurance premium increases in 2026 compared to the previous year. CFIB found that 37 per cent experienced increases between three and nine per cent, while another 37 per cent saw premiums rise by 10 per cent or more.
For many operations, those increases come at a time when margins are already under pressure from higher input costs and market uncertainty. CFIB noted that rising insurance expenses are reducing available cash flow, delaying investment decisions, and in some cases leading businesses to reduce operations or reconsider future expansion plans.
The report included examples from agricultural business owners who said limited insurance availability prevented them from pursuing new opportunities or expanding certain parts of their operations because appropriate coverage could not be secured.
Limited Competition Leaves Fewer Choices
The CFIB analysis suggests provider concentration may be contributing to the industry's insurance challenges.
Although most agri-businesses purchase insurance through brokers, many operators still report a lack of meaningful choice when selecting coverage. The organization found that two insurers account for a significant share of the agricultural insurance market among survey respondents, while some regional providers are unavailable in certain provinces.
For specialized agricultural operations, finding a provider willing to underwrite specific risks can be especially difficult. Businesses involved in greenhouse production and other niche agricultural sectors reported challenges locating alternative providers or obtaining competitive quotes.
The situation raises concerns about the long-term competitiveness of Canada's agricultural sector. Industry observers note that access to reliable insurance coverage often plays a critical role in securing financing, protecting investments, and supporting business growth.
Questions About Existing Public Programs
CFIB also pointed to concerns surrounding participation in AgriInsurance, the federal-provincial crop insurance program designed to help producers manage production risks.
According to the organization's 2026 agriculture survey, a majority of respondents had not used AgriInsurance during the previous three years. Some producers indicated the program does not fully address the complexity and financial realities of modern agricultural businesses.
The federation argues that strengthening public insurance programs and encouraging greater competition among private insurers could help improve affordability and access to coverage across the sector.
Policy Recommendations
To address the growing challenge, CFIB is calling on governments to explore measures that encourage additional competition in the agricultural insurance market, including support for alternative insurance models and new market entrants. The organization also recommends examining ways to reduce insurance-related costs and modernizing AgriInsurance so that it better reflects today's agricultural operations and risks.
As Canadian farms continue investing in technology, infrastructure, and business diversification, access to affordable insurance is likely to remain a key issue. The CFIB report suggests that without improvements in coverage availability and cost, some agricultural entrepreneurs may postpone growth plans or avoid entering higher-risk segments of the industry altogether.