Mieux comprendre les choix des gestionnaires agricoles au Québec

In the current context of climate change, the frequency of extreme events causing crop losses is increasing. Agricultural businesses are subject to uncontrollable and often unpredictable events that can affect their revenues, margins and production.

Based on a survey and interviews with farm managers in Quebec, this study seeks to better understand managers' choices regarding crop loss risk management strategies. Between 2018 and 2022, two thirds of farm managers have reported having suffered crop losses that have adversely affected the financial health of their businesses, and 71% anticipated a worsening situation due to climate change. Not all businesses are equal when it comes to risk: more than one third (36.8%) of managers feel in control when making risk management decisions, while more than one quarter (27.7%) see it as a game of chance.

Three types of strategies can be combined to manage these risks. Self-management (crop and area diversification and other agricultural practices), resilience (management and planning, training, advice, sharing experiences with peers) and risk sharing and transfer of risks to other entities such as collectives or governments. Crop insurance falls into this category.

Three quarters of farm managers have reported having taken out crop insurance for at least one year between 2018 and 2022, although it is often seen as a last resort. Managers' favourable perception of the programme in general and of the level of premiums compared to the compensation received is a key factor in the decision to take out crop insurance, as well as their understanding of the programme and their confidence in it. Insurance advisors and the website of La Financière agricole du Québec (FADQ) are their main sources of information.

The study highlights the importance of encouraging farms to combine various risk management strategies and to improve communication about crop insurance and climate risks.