The aspect of confidence among Canadian small businesses in the agricultural sector is fundamental for the sustainability of the projects. The article, AgriStability or Aggravation, is relevant in identifying problems that exist within the agri-business affecting their stability, such as predictability, bureaucratic procedures in paper works, poor customer services, as well as timeliness issues.
In pinpointing these challenges, the three-leveled Canadian government, Federal, Provincial, and Territorial (FTP), has been able to devise new risk management opportunities and programs that have enhanced confidence among producers and stakeholders in this key sector. Also, putting in place risk management programs in the agribusiness make farmers immune to the global economic downturns that have been prevalent in the 21st century.
This is essential given that a previous survey by the Canadian Federation of Independent Businesses (CFIB) on the confidence level in the agricultural industry reported a low value of 54.9 compared to the national business confidence level of 67.3.
The analysis, therefore, made it necessary for the government to instill optimism among farmers by taking drastic steps to regulate the environment in which farmers operate, as well as improving the tax levies in the agribusiness sector.
With a high level of predictability and transparency in the agribusiness, assurance of optimism is indispensable. It is also prudent to control other factors that affect farmers in the agricultural industry, given that there are other global issues that require the approach of all world governments.
The approach by the Canadian government to increase optimism is a move that intends to increase profits for agribusiness members, as well as other key stakeholders in the market place.
Even though the government cannot mitigate global challenges, devising appropriate farm disaster protection techniques increase stability and optimism in this sector. Risk management programs that include coverage of the cost of production, whole farm income stabilization and disaster protection, as well as a reward for environmental stewardship are significant in enhancing stability, and thus the sustainability of the agribusiness in Canada.
Since farmers sell their products not only in Canada but also across borders, the government approach on risk management programs has to address issues that touch on foreign governments, such as the closure of borders given that such moves directly hamper the productivity of the agribusiness.
In essence, the article expounds on the need for initiating risk management programs in the agribusiness sector. I agree with the piece of writing in outlining the market failures, diseases, natural disasters, and weather as some of the drastic risks that can affect the income of businesses.
Small businesses can also find it useful to determine the types of risks that they can address without the support of the government, as well as those that the government can offer assistance. The article addresses the stability concept in the agribusiness, which small business owners will find worth to read and apply in their businesses to increase productivity.
Although the article enumerates some of the aspects that require improvement in the AgriStability program, it fails to put customer service ratings among key aspects that need urgent improvement. In businesses, customer satisfaction has always been key in determining the success of any initiative. Therefore, stakeholders in the agribusiness have to inculcate feedbacks from customers when making decisions on how to enhance productivity.
On the other hand, it is illogical for producers to spend $1,984 to take part in the AgriStability program, and still record a high level of discontent among participants. In comparison, the 2005 CAIS program required producers to spend half the amount of money that they used in the AgriStability program. A vivid cost-benefit analysis reveals the need to cut on the cost of participating in the latter program to minimize the aggravation.
As it is, the AgriStability program takes a lot of money from producers but does not assist them in coming out of the ardent challenges. A program that requires more funding makes it difficult for small business owners to participate since they are not able to realize the benefits of the program in the end. As a result, such a program remains attractive to large businesses, as they enjoy economies of scale.
To minimize frustration and despair in agribusiness, ardent financial support has to be predictable. When many farmers and other key stakeholders comprehend the procedures that they follow in calculating their payments, predictability becomes easy. Through effective farm management techniques, farmers can easily guess the resulting payment, as well as the response of the entire program.
With the ability to predetermine the results of the programs, planning becomes easy in itself. The article has provided basic frameworks that the Federal, Provincial, and Territorial governments have to consider and implement to increase stability in the agribusiness industry to eliminate aggravation that has been common in the industry.
Small business owners have to comprehend in details the entire concept of the AgriStability program to apply the numerous risk mitigation techniques that can enhance overall productivity. In areas that require expertise, such as financial calculations, business owners can rely on outside professionals to ensure transparency and consistency in calculations.