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The February 2025 CAPI Ag Policy Brief shows most farmers see 2025
as riskier than previous years. Agriculture and Food Canada projects a
15 per cent decline in Net Cash Income, erasing recent gains.
We must invest in approaches that strengthen resilience while regenerating natural
systems. This means directing capital toward nature-based solutions, developing sophisticated risk frameworks, and creating incentives for long-term sustainability.
The 昀椀nancial sector must embrace a comprehensive view accounting
for interdependencies between climate, nature, and economic
systems. This means understanding systemic risks beyond narrow
昀椀nancial materiality and sending clear signals that sustainability is a
fundamental business imperative.
Canadian farmers have repeatedly demonstrated adaptability and innovation. But
they cannot navigate this new risk landscape alone. They need 昀椀nancial institutions,
policymakers, and supply chain partners to provide coherent, science-based support.
The sector can lead in promoting initiatives to 昀椀nance nature-based
solutions, helping redistribute the risk and upfront costs farmers
face. Examples include green bonds, active ownership, natural capital
funds, and payment for ecosystem services.
If we fail to act decisively, the costs will be measured not just in dollars but in irreversible degradation of the natural systems our agricultural economy depends on.
The choice is clear: continue with a business model that undermines its foundation
or embrace a vision aligning economic prosperity with ecological stewardship. The
future of Canadian agriculture depends on choices made during this time of great
consequence.
Time for decisive action
The time for half-measures is over. Canadian agriculture stands at
a critical juncture: trade tensions, climate disruptions, and natural
capital depletion threaten its foundation.
Jean-Michel Couture is Economist & President at Groupe AGÉCO
and Sajeev Mohankumar is Senior Technical Specialist, Climate
and Nature at FAIRR.
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