Thanks, Janice.
I'm Brad Deleeuw, chair of the National Cattle Feeders' Association. I operate and am a partner in a family feedlot in southern Alberta, near Lethbridge. I started working with this family 15 years ago. Over the years, they have brought me into the family business as a shareholder.
We currently grow 4,000 irrigated acres and have a capacity of 30,000 head of cattle. Business risk management programs have assisted our business over the years. Modernization of BRMs can include changes to existing programs, but we must also be open to the possibility of entirely new programs.
When modernizing BRM programs, NCFA asked the government to acknowledge that one size did not fit all commodities or all operations within the same commodity. There are gaps in the current suite of BRM programs that work for livestock production. Current programs are not flexible, straightforward, bankable or timely. As well, the approach of global competitors to risk management is changing.
NCFA recommends a number of changes: Pilot a whole-farm revenue insurance program. Increase the AgriStability cap from $3 million to $15 million, with reviews of the cap every five years. Make livestock price insurance a permanent, subsidized and national program. As well, permanently increase the advance payment program interest-free portion to $350,000.
I want to speak specifically to the AgriStability program, as it is currently the only potential tool for Canadian cattle feeders. For over 20 years, the AgriStability payment cap of $3 million remained unchanged. NCFA acknowledges that the government doubled the cap to $6 million for the 2025 program year, but this increase must be larger and permanent.
Feedlots are large in size compared with other livestock operations, and thus they reach the $3 million or $6 million payment caps very quickly. This leaves farm families shouldering tens of millions of dollars in potential risk and loss.
A 2023 study conducted by Meyers Norris Penny found that AgriStability coverage had decreased by two-thirds since 2013. Taking this into account, and the fact that there have been no permanent adjustments to the cap from 20 years ago, NCFA recommends that the AgriStability cap be increased to $15 million, with a consideration to review the cap in five years.
Again, thanks for your attention today. We look forward to a good discussion.