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Why Do Ontario Farmers Need Risk Management?

Ontario Federation of Agriculture Say Farmers Need Protection from Volatile Weather

By , Farms.com

Today’s modern farmer needs to be equipped to participate in risk management programs. Ontario Federation of Agriculture President Mark Wales says that Ontario farmers will need to continue to rely on risk management programs to help manage weather fluctuations that are out of their control. Wales discusses the new reality in his weekly commentary found on the OFA website.

 Risk management is vital in order to give farmers peace of mind. Wales notes that weather is just one example of what makes farming a volatile business. Crop commodities rise and fall in direct response to weather conditions. Risk management programs help farmers manage some of the financial risks that are associated with growing crops in competing weather conditions.

The 2012 growing season is a good example of unpredictable weather conditions. The spring started off with unseasonable heat and a sudden cool snap that destroyed a significant portion of Ontario’s fruit supply with over 85 per cent of the apple crop in ruins. With much the growing season still ahead, farmers will be paying close attention to what the weather will provide.

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