Canadian farmers need new tools to support on-farm innovation

Today’s producers face increasing challenges, from extreme weather to rising financial pressures. 

But within this uncertainty, we see an opportunity: What if we created new tools that help buffer short-term risks and encourage on-farm innovation to build resilience and stewardship? 

Our goal is to improve profitability, reduce variability, and boost resilience by de-risking on-farm innovation. We are focusing on reducing the risks of trialing new Beneficial Management Practices (BMPs), so farmers can test what works, plan effectively, and access the support they need.

Mounting pressures on Canadian farmers and ranchers

Major crop losses from severe weather and increased seasonal variability are becoming the new normal.

• Disaster relief programs, like AgriRecovery, which were once rarely used, are now being drawn from almost every year.

• Input costs are soaring, and profitability is a growing concern. 

• The stress is not just economic. It is also affecting farmer’s mental health.

Producers aim to make smart decisions that balance short-term opportunity with long-term viability. We want to be good stewards of the land and pass on thriving businesses. But, in an era of mounting economic and climate threats, innovation can also feel too risky.

Risk-management tools for a resilient agriculture sector

What if we flipped the script? Imagine financial tools that help farmers:

• Build resilience to unpredictability through soil health and nutrient management

• Protect income via profit optimization

• Access improved borrowing options

• Benefit from business protections that reward sustainability

These tools would not just manage risk—they could empower farmers to innovate with confidence. 

Other countries are leading the way 

In the United States, the Innovation Assurance and Growers Edge Crop Plan Warranty pay producers if a resilience-building practice change results in a yield, profit, or revenue loss.

The Nitrogen Rate Risk Protection program pays farmers a set rate per acre when changes to fertilizer use lead to yield loss, and the Crop Insurance Discount Program offers producers a per-acre discount on crop insurance premiums when they plant cover crops.

Best Management Practices (BMP) insurance programs, which protect farmers’ profits when adopting new stewardship practices, are established elsewhere, including the Willis Tower Watson’s Nitrogen Risk Insurance in Australia, the U.S. BMP Challenge, and the NatureX RMS trial in North America.

De-risking innovation in Canada

Farmers for Climate Solutions has launched a de-risking on-farm innovation project that builds on programs like these. In partnership with the Smart Prosperity Institute and the Nature Investment Hub, our project is focused on nutrient management and soil health in crop farming. 

Working with a broad range of financial, value chain, and insurance sector stakeholders, we are implementing on-farm pilots that test new de-risking tools with Canadian farmers:

We began this work in Ontario in 2025, and will expand to the Prairies and Atlantic Canada in future growing seasons.

This project is supported by Canadian philanthropic organizations, as well as Definity.

Cover image: Sidedressing corn and seeding cover crop at Woodleigh Farms in Cavan, ON