Managing pig production price and income risks: Diversity and advantages of Canadian schemes

Public Authorities in Canada act along three lines: insurance subsidies, disaster aid and the encouragement of precautionary savings. Precautionary savings smooth income over time according to the economic situation. Crop insurance programs, which are managed by the provinces, are not directly affected by pig production. Pig producers enthusiastically support the Canadian Farm Income Stabilization Insurance Program introduced in Quebec in 1981, which pegs farm income to a minimum family labor compensation set limit. The payment of an annual subscription fee guarantees the farming concern a minimum annual indemnity for every pig covered by the scheme. As the main risk management program, the PCSRA stabilizes incomes without subsidizing them through a cost sharing scheme developed between the public authorities and the participant. While supporting free trade, Canada has nonetheless set up a risk management policy based on the transfer of public funds to the agricultural sector.