Agric

Question 1

what is GF2 (going-forward 2)

Answer 1

GF2 is a comperhensive federal-provincial-territorial framework for Canada’s agriculture sector

Question 2

6 Business Risk Management Programs under GF2

Answer 2

1. Agri-Insurance - protect against production loss - funded by producer-prov-fed
2. Agri-Stability - proctect against margin decline - funded by producer-prov-fed
3. Agri-Investment - investement fund for small losses - funded by producer-prov-fed
4. Agri-Recovery - protects against disaster - funded by prov-fed
5. Advance Panyments Program - low-interest loans for CFs management - funded by fed
6. Western Livestock Prodcution Insurance Program (WLPIP) - proctect against flucutuations in livestock prices - funded by producer-prov-fed

Question 3

Define Probable yield

Answer 3

expected yield per unit of exposure for a given producer, agricultural product and crop year

Question 4

Uncertainty load

Answer 4

a load in rates to account for limitations in data, assumptions and methods

purpose of the load: cover future contigencies

Question 5

Self-sustainablility load

Answer 5

a load in rates to recoup any deficits from past operations

or

a load in rates to recover deficits & maintain surplus

purpose of the load: cover past deficits

Question 6

Risk-splitting benefits

Answer 6

indemnity based on a subset of production for a given agricultural product

Question 7

Balance-back factor

Answer 7

factor applied to aggregated premium to correct for individual discounts or surcharge