Do Business Risk Management Program Payments enhance producers’ productivity and investment in productivity enhancing activities?
The purpose of the project is to examine the relationship between Business Risk Management programs and firm-level productivity and to examine the competitiveness of livestock and crop/oilseed farms using productive efficiency measures. Agricultural policy frameworks such as Growing Forward are intended to enhance the productivity, competitiveness, and profitability of the agricultural sector in addition to stabilizing farming income. The Business Risk Management (BRM) programs are intended to enhance producers’ confidence to invest in their business to manage risks that are less severe and to increase investment in productivity-enhancing activities such as soil improvement. The effects of programs such as BRM require a detailed analysis of the change in producers’ behaviour and how it has changed because of the program.
Innovations in Managing Risk and Stochastic Simulation Modeling for Ontario Farming Sector
The overall purpose of the project is (1) to develop a stochastic risk management model for a representative beef farm in Alberta and Ontario, (2) to examine regional beef market integration, and (3) to examine the competitiveness of beef farms using productive efficiency. The research program will identify market-based risk management strategies and government programs and assess the effectiveness of each strategy for mitigating volatility.