Agricorp expansion bill to reach committee

The bill seeks to make new crops eligible for insurance under Agricorp.

Risk Management News

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The Ontario legislative assembly has voted to send Bill 40, which would amend the 1996 Crop Insurance Act to include new crops for coverage under Agricorp, to the Standing Committee on Finance and Economic Affairs.
 
The bill seeks to address the elevated risk associated with climate change’s devastating effects on agricultural production, as well as the possibility of bovine spongiform encephalopathy (BSE), or mad cow disease.
 
Currently, the Crop Insurance Act allows for Agricorp to provide coverage for vegetables, fruit and honey, forage, tobacco and perennial plants.  Agricorp is a crown agency that was established by this Act in 1996, and based in Guelph.
 
If passed, the bill would grant the Ontario minister of agriculture, food and rural affairs the ability to deem auxiliary products as eligible for Agricorp coverage. 
 
"Our province's inability to offer production insurance plans for commodities beyond crops and perennial plants represents a significant gap," said James Bradley, Liberal MPP for St. Catharines, in the legislature.
 
In addition to coverage for livestock, concerns have been raised for bee framing and grape production.  Many politicians acknowledge that shifting climate patterns have put enormous strain on the Canadian agri-food industry.
 
"Potential increases in productivity, however, are all too easily offset by unpredictable negative scenarios," Sophie Kiwala, Liberal MPP for Kingston and the Islands, said during an early debate. "For example, the trend for warmer winters is already encouraging the spread of damaging invasive species, especially insect pests and fungal diseases. Longer, hotter summers lower the natural immunity of livestock, while extreme weather events and flooding can increase the spread of infectious disease."
 
The bill would also require Agricorp to cover such phenomena as global market fluctuations and cost increases.
 

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