Member of Parliament for Tobique-Mactaquac, TJ Harvey has announced an investment of more than $400,000 to support an initiative by the Canadian Federation of Agriculture (CFA) to create a new accounts receivable insurance tool.
CFA’s project seeks to address a gap in the agricultural sector for individual transaction accounts receivable insurance. The insurance tool is intended to provide financial protection to farmers as they explore new markets within and beyond Canada.
Harvey made the announcement on behalf of Agriculture and Agri-Food Minister Lawrence MacAulay.
“The Government of Canada is committed to working with industry and the private sector to explore tools that contribute to a resilient agriculture sector,” said Harvey. “This investment will help give farmers the confidence of guaranteed payment, which encourages them to take advantage of new sales opportunities to gain higher returns for their commodities and increase their profitability.”
“The Canadian Federation of Agriculture is pleased to undertake this project to develop tools that will improve the understanding of potential risks in agriculture and support the development of insurance protection for farmers in cases where a buyer doesn’t pay their bill,” stated CFA president Ron Bonnett. “CFA will work with its associate member, Farmers of North America, to share the results of the project and extend these insurance offerings across Canada.”
The intent of the project is to create a private sector-delivered, accounts receivable insurance for up to 20 agricultural commodities in Saskatchewan and Manitoba. There are longer-term plans to expand credit insurance across Canada “to provide more certainty and ensure higher profitability,” as a release put it.
The two-year pilot project has been funded under the
Growing Forward 2 – AgriRisk Initiatives, a program that “supports the research and development as well as the implementation and administration of new risk management tools for use in the agriculture sector.”
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