Canada’s agriculture industry is evolving rapidly. As operations grow, diversify, and adopt new technologies, traditional insurance approaches are no longer enough.
Recognizing the changing risk landscape, Axis has reassessed its approach to agribusiness insurance and risk management. Our refreshed Agribusiness Program is designed to meet the needs of modern agricultural businesses across the value chain, providing specialized expertise, tailored risk solutions, and strategic guidance that extends beyond policy placement.
A specialized, value-chain-focused approach to risk management is becoming essential for agricultural organizations looking to protect profitability, build resilience, and support long-term growth.
Agriculture’s Economic Impact Continues to Grow
Agriculture remains one of Canada’s most important economic sectors. The Canadian agri-food system contributed approximately $149.2 billion to GDP in 2024, employed 2.3 million people, and supported roughly one in nine jobs nationwide. Primary agriculture generated $31.7 billion in GDP, while food and beverage processing added another $35.8 billion.
The opportunity is particularly significant in Western Canada. Alberta alone accounted for approximately 25.5% of Canada’s farm revenues, with large commercial operations driving the majority of industry growth. Notably, farms generating more than $2 million in annual revenue represent only a small percentage of operations yet contribute the majority of farm revenue.
The Modern Agriculture Value Chain Is More Complex Than Ever
Agriculture is no longer limited to planting crops and raising livestock. Today’s sector spans the entire value chain, including:
- Crop and grain production
- Beef, dairy, poultry, and feedlot operations
- Feed manufacturing
- Food processing and packaging
- Equipment dealerships
- Agricultural societies and auction facilities
- Fertilizer and fuel suppliers
- Direct-to-consumer retail channels
- Ag-tech and automation providers
Each segment carries unique exposures, regulatory requirements, and operational risks. A processing facility, for example, may need protection against product recall, contamination, equipment breakdown, cyber threats, and supply-chain disruption. A livestock producer, meanwhile, may be more concerned with animal health, biosecurity, environmental liability, and weather-related losses.
This diversity highlights the need for specialized expertise rather than a one-size-fits-all insurance program.
Weather Volatility Is Driving New Challenges
Extreme weather remains one of the most significant threats facing agricultural businesses. Drought, flooding, hail, heat events, excessive rainfall, and severe storms can disrupt production and significantly impact profitability. Recent examples, including major hail events in Alberta and growing climate variability across Western Canada, demonstrate how quickly weather losses can escalate.
Organizations increasingly need a broader risk strategy that includes:
- Insurance program reviews
- Weather and hail exposure assessments
- Business continuity planning
- Supply-chain contingency measures
- Risk mitigation recommendations
Real-World Example: Alberta’s 2024 Hailstorm
The impact of weather volatility was evident in August 2024, when a severe hailstorm swept through the Calgary region, causing billions of dollars in insured losses and significant crop damage across southern Alberta. Hundreds of producers reported losses, with some experiencing extensive damage and reduced harvest yields. Events like these demonstrate how quickly weather-related disruptions can affect profitability, operations, and business continuity. They also highlight the growing importance of proactive risk management, resilience planning, and insurance strategies designed to respond to increasingly unpredictable weather patterns. (1)
Cyber Risk Has Arrived
Modern farms are becoming highly connected businesses. Precision agriculture tools, automated feeding systems, cloud-based management platforms, smart sensors, and digital payment systems have introduced new efficiencies but also new vulnerabilities.
Cyber incidents can disrupt operations, compromise sensitive business data, impact customer trust, and lead to significant financial losses. Yet many agricultural organizations still view cyber insurance as a concern primarily for urban businesses.
Real-World Example: The JBS Cyberattack
One of the most significant examples occurred in 2021 when a ransomware attack on JBS, one of the world’s largest meat processors, disrupted operations across North America and Australia, including the company’s beef-processing facility in Brooks, Alberta. Plant operations were temporarily affected, demonstrating how cyberattacks can interrupt food production and create supply-chain concerns throughout the agricultural sector. (2)
As digital adoption accelerates, cyber readiness will become a critical component of agricultural risk management.
Value-Added Agriculture Creates New Exposure
The growth of food processing, direct-to-consumer sales, and vertically integrated operations is creating larger revenue opportunities for agricultural businesses. However, these opportunities come with increased complexity.
Organizations expanding into value-added agriculture may face risks such as:
- Product recall
- Product liability
- Refrigeration failures
- Business interruption
- Environmental liability
- Supply-chain disruption
- Data security concerns
Real-World Example: Food Safety and Product Recalls
As agricultural businesses expand into food processing and value-added operations, risks such as contamination and product recalls become increasingly significant. In 2024, a national food safety investigation led to the recall of various refrigerated plant-based beverages sold across Canada due to potential Listeria monocytogenes contamination. The incident highlighted how quickly a food safety issue can trigger operational disruption, regulatory scrutiny, product withdrawal costs, and reputational damage. For organizations involved in processing and manufacturing, these events reinforce the importance of robust quality controls, recall preparedness, and insurance programs designed to address evolving food safety risks. (3)
Why Specialized Agricultural Expertise Matters
Many brokers and insurance providers can offer agricultural coverage. Fewer can provide strategic guidance across the entire agricultural value chain.
A specialized agricultural practice brings value through:
Industry-Specific Risk Reviews
Rather than applying generic commercial solutions, advisors can tailor recommendations to individual sectors such as feedlots, grain operations, poultry producers, processors, or equipment dealers.
Carrier Alignment
Different insurers have different appetites, strengths, and underwriting approaches. Matching clients with carriers that understand their specific industry segment can improve coverage outcomes and pricing competitiveness.
Advisory-Led Relationships
The future of agricultural insurance is not simply about policy placement. It is about helping clients understand emerging risks, improve resilience, and make informed business decisions. Areas such as weather resilience, cyber preparedness, and operational risk assessments are increasingly becoming part of the conversation.
Building the Future of Agricultural Risk Management
Agriculture remains one of Canada’s most dynamic industries. As businesses become larger, more sophisticated, and more connected, their risk profiles are changing just as quickly.
At Axis, we recognize that today’s agricultural organizations need more than a traditional insurance broker. They need a strategic partner that understands the complexities of the modern agricultural value chain and can help navigate evolving risks across production, processing, distribution, and emerging technologies.
That’s why we reassessed our approach to agribusiness risk management and developed a dedicated Agribusiness Program designed to deliver specialized expertise, tailored insurance solutions, and proactive risk advisory services. By combining deep industry knowledge with access to leading insurance markets, we help clients identify exposures, strengthen resilience, and make informed decisions that support long-term growth.
Whether you’re a producer, processor, feed manufacturer, equipment dealer, or ag-tech innovator, Axis provides the insight and support needed to protect your business at every stage of the value chain.
As the industry continues to evolve, organizations that take a proactive approach to risk management will be best positioned to navigate uncertainty and capitalize on new opportunities. Axis is committed to helping agricultural businesses build resilience, protect profitability, and grow with confidence.
Get Agribusiness InsuranceShare post:
Russ Stewart
Assistant Vice President, Agribusiness
Russ Stewart is Assistant Vice President of Agribusiness at Axis Insurance, bringing more than 20 years of experience in commercial insurance, employee benefits, and risk management. He specializes in helping agricultural and complex commercial businesses navigate evolving risks through strategic insurance and advisory solutions. Drawing on both industry expertise and his connection to family farming, Russ helps clients build resilience and support long-term growth.
VIEW BIOGRAPHY
