Good morning and thank you, Mr. Chair and committee members, for the invitation to join you today. It's a privilege to be here on behalf of the Saskatchewan Association of Rural Municipalities, representing 296 rural municipalities and the thousands of producers who make up the backbone of our province's economy.
Saskatchewan's producers have built a reputation as some of the most resilient and innovative farmers in the world, but that resilience has been tested by extreme weather events, market volatility and rising input costs. Business risk management programs are intended to provide stability and confidence in times of uncertainty. Unfortunately, what we hear from producers across this province is that many of the programs, structures and eligibility requirements are failing to meet that goal.
Our members consistently raise concerns about how eligible expenses are defined within programs such as AgriStability, AgriInvest and AgriInsurance. The issue isn't only the complexity, but the disconnect between what is considered eligible under the program and what producers actually spend to operate their farms today. The costs of fuel, fertilizer, freight and interest have grown dramatically, yet these real, unavoidable expenses are often capped, limited or excluded in ways that erode the effectiveness of the BRM support.
As a result, the very producers these programs are meant to help are too often left without meaningful assistance when they need it the most. Many have found themselves paying into programs that simply don't respond when their margins collapse or unforeseen costs cut deeply into their operations. The intention behind BRM programs is sound, but the way eligibility criteria are applied, particularly around input costs and depreciation, means that the calculation of support does not reflect the true cost structure of modern farming in Saskatchewan.
I also want to stress the importance of flexibility and timeliness. In agriculture, decisions are made in real time. When support programs take months to deliver assistance or require complex reconciliations that push payments well past the period of need, that delay can make the difference between staying afloat and leaving the industry for good.
That's why SARM supports calls for program modernization, clearer definitions of eligible expenses, faster mechanisms for payment and improved regional adaptability so that the program design will recognize the unique cost pressures and production realities of prairie agriculture.
Producers' confidence in BRM programs has declined because the rules have fallen out of step with the realities on the ground. Our goal is not to increase dependency, but to ensure fairness, so that the programs producers pay into actually cover the risks and costs they face. Saskatchewan producers are proud to manage risk responsibly, but that management must be matched by federal programs that offer real relevance and value.
Mr. Chair and members of the committee, SARM appreciates your commitment to reviewing these programs and to hearing directly from those affected. The future competitiveness and sustainability of our agriculture sector depends on ensuring that the safety net fits the modern farm business.
I look forward to discussing ways to strengthen BRM programs so that they serve producers as they are—not as they were a generation ago.
Thank you.