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The case for business risk management program revisions

Memorable moments over the past few years exposed weaknesses and rigidity in Canada’s current business risk management (BRM) programs for growers from the Montérégie Hailstorm in Quebec to the 2021 heat dome in the Okanagan. Massimo Bergamini, executive director of Fruit and Vegetable Growers of Canada, says making improvements to farm safety nets to reflect growers’ cash flow realities and adding greenhouse producers in economic safety programming can help fortify the industry from tariffs and other destabilizing factors.

Bergamini lays out three examples of when BRM programs fell short and where the areas for improvement are from more flexible coverage to larger thresholds.

Case Study: Ontario Greenhouse Growers Under Market Volatility

What Happened

• The Ontario 2018 experience with pepper weevil exposed large gaps in BRM programs, and no available support under AgriRecovery when it comes to supporting greenhouse growers facing an emerging disease/pest situation.
• Unlike animal health, plant pests and disease have no regulatory compensation mechanism nor early pest reporting incentives that compensate growers in response to emergencies.

Why BRM Matters

• Without a tailored greenhouse crop insurance program—something comparable to certain U.S. models—growers are left without a vital safety net for greenhouse-specific crop production risks like sharp increases in energy costs, disease outbreaks, supply chain interruptions, or market volatility from tariffs or other, non-tariff barriers.
• High-quality, harvestable fruits may not get harvested, see significantly reduced yields, and/or need to continue the harvest without any income for a period.
• The greenhouse vegetable sector lacks access to AgriInsurance. AgriStability and AgriInvest operate at a scale with less relevance to most greenhouse vegetable operations versus other farm types. AgriRecovery currently represents the sector’s only but inaccessible disaster backstop.
• The sector needs safety nets to recognize greenhouse-specific risks and recovery costs, and program criteria that is more robust and predictable in response to address unforeseen and/or uninsurable events.

Outcome

• Greenhouse vegetable growers invested millions per acre in capital costs, borrowing costs, and annual operating expenses. The produce is constantly growing – when the product is ripe, the sector has to pick it, pack it and ship it. Greenhouses are not factories; they cannot shut the production line down and “pause” growing plants to come back later.

• There are few accessible international markets, but none that meet the scale of U.S.’s demand or reach major retail destinations within a matter of hours from harvest.
• The scenario highlighted gaps in BRM support specifically tailored to greenhouse producers, demonstrating that stronger, more customized solutions would help insulate the sector from sudden market shocks.

Case Study: 2021 Heat Dome in the Okanagan (Orchard Fruit Growers)

 What Happened

• During the summer of 2021, a record-breaking heat dome settled over the Okanagan region in British Columbia. Temperatures soared beyond normal thresholds for extended periods.
• Orchard fruit growers—especially those producing cherries, peaches, and apples—reported severe sunburn damage to fruits, resulting in significantly lower yields and quality.

 Why BRM Mattered

• Existing coverage like AgriStability offered some relief but did not fully account for the scale of crop damage caused by such unprecedented heat. Reference margins from previous years did not reflect the reality of sudden, climate-induced losses.
• Some orchards with microclimate management systems (e.g., misters, shade cloth) fared better, but these systems require upfront investment that many smaller growers can’t afford without robust BRM support.

 Outcome

• The heat dome led to immediate revenue losses and long-term stress on fruit trees, affecting future productivity.
• The event underscored the urgent need for adaptive BRM frameworks that can accommodate more frequent and severe climate extremes, especially for vulnerable high-value crops.

Case Study: Montérégie Hailstorm Impact on Apple Orchards and Vegetables

 What Happened

• In the summer of 2021, an intense hailstorm swept through parts of Montérégie, a key agricultural region in Quebec. High winds and golf-ball-sized hail caused significant damage to apple orchards and vegetable fields.
• Apple growers reported bruised, pitted fruit—leading to major downgrades from fresh to processing quality. Vegetable producers (e.g., lettuce, onions) lost entire fields in some cases.

 Why BRM Mattered

• While some producers had coverage through AgriInsurance, it often did not account for losses linked to the sudden drop in fruit quality or for specialty vegetables where program options are more limited.
• Other growers relied on AgriStability, but the reference margin calculations did not reflect the full financial impact of a short, high-intensity event like a hailstorm.
• Producers faced immediate cash flow shortages, especially those who needed to replant vegetables or invest in damage control for next season’s orchard yields.

 Outcome

• Several operations struggled to meet supply contracts for fresh market apples and vegetables. This had downstream effects on local retailers and processors that rely on steady supplies of Quebec-grown produce.
• The event highlighted the need for specialized hail and weather-related insurance add-ons, more flexible coverage thresholds, and quicker relief to protect both perishable crops and longer-term orchard productivity.

In summary, there are gaps in the current arsenal of business risk management programs in Canada. Events in the recent past highlight the need for more support tailored for greenhouse producers, specialized weather events, and more flexible coverage thresholds that factor in the reality of perishable crops and quality damages in addition to crop losses.

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