Business Risk Management
To read the entire business risk management policy statement, please download the CFA Policy Manual.
CFA’s primary objective with regards to Business Risk Management or Safety Nets is to achieve a strong, predictable and bankable framework of BRM programs that provide disaster assistance and stability to producers who have incurred unforeseen loss.
Agricultural producers face extraordinary production risk – insect, disease, frost, drought, wind, and floods. Producers face further market risks as well with volatile price risk, tariff and non-tariff barriers – expected and unexpected. With extraordinary risk comes the need for extraordinary risk management tools.
While BRM programs do not build growth, they provide stability to the industry and act as a foundation for growth. That foundation requires programs to:
- address markets that are distorted by international subsidies
- be flexible to address regional and commodity needs,
- be predictable and bankable for producers, and
- maintain supply management and its three pillars as producer tools to manage risk.