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What keeps Canadian farmers up at night? Many will answer: risk. In Ryan Riese's experience, producers are keenly aware that their success depends on many factors, not all of which they can control.

"You can be the best producer in the world, but some things are simply out of your hands," says Riese, National Director, Agriculture Strategy, RBC. "Weather, commodity prices, interest rates and foreign exchange can all have a big impact on your bottom line."

Even though an individual farmer can't control these factors, many risks can be managed to one degree or another. Crop insurance, fixed versus variable rates on farm loans, currency hedging and forward-contracting, swaps or options for commodity pricing can all help.

"Some of these tools used to seem quite exotic, and some people just didn't feel comfortable with them," says Riese.
"Today, farmers are getting accustomed to strategies like hedging and forward–contracting, and they're being used more widely."

Some traditional risk management strategies still work well. Think of diverse crop rotations, installing tile drainage to mitigate excess moisture and growing both crops and livestock. Even so, the risks that must be managed and the tools available to do so are changing. As Riese explains, a chat with your local RBC Agriculture Account Manager is a great place to start.

"Our account managers know the industry intimately and can steer you in the right direction," he says. "If you want to take a fresh look at risk management, we can help."

What's your next move? We're ready to help.
 
Have an RBC Agriculture Account Manager contact you
Learn more about farm business risk management and how RBC can help.
 


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* NO PURCHASE NECESSARY. Contest is open to Agricultural Producers in Canada. Contest ends April 8, 2019 at 5:00 PM EST. One prize available to be won (approx. value $50,000). Correct answer to skill-testing question required. Complete Contest Rules available at rbc.com/feastinthefield.

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