Craig Klemmer is Farm Credit Canada’s Principal Agricultural Economist and says when it comes to marketing risk producers identified commodity price, market access and consumer food preferences as key issues of concern.
“According to the survey 67% identified marketing risk as a high concern and a further 24% identified it as a moderate concern. So, you know, that is them looking to receive a certain price for their commodity.”
The number one strategy producers in the survey used to deal with price risk was to lock in commodity price contracts with a buyer.
Another key issue for producers was production risk, Klemmer says it’s no surprise that weather was at the top of the list.
“You know, you think about what we've experienced over the summer with dry conditions at the beginning of the year, knowing that we had a pretty tough harvest in 2018 and we're realizing that as well here in 2019. Production risk and specifically weather is always a top concern for producers.”
He notes 64% of producers turned to crop and livestock insurance as the top strategy they used in dealing with production risk, while 62% identified diversification of their business operation as a key strategy.
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