Tariffs aren’t just a trade issue anymore; they’re now a kitchen table conversation between Ontario farmers and their brokers. Insurance is becoming one of the few lifelines farmers can still control.
The pressure is mounting from all sides. Inflation is driving up replacement costs, and trade tensions are destabilizing long-standing markets. Farmers are adapting, but without coverage for losses tied to global policy shifts, they’re often left exposed.
“There is a lot of conversation going on at the kitchen table between us and our clients at this time about what's going on,” said Scott Smith (pictured), a broker at Zehr Insurance.
Those conversations have grown more urgent. “Even though rates are going up, this is what we can offer you,” Smith said. “It’s about flexibility – not cutting corners.” With no protection for tariff-related losses, brokers are adjusting deductibles, fine-tuning limits, and relying on carrier relationships to keep policies viable.
In supply-managed sectors like dairy and poultry, some stability remains. “They're at least protected at this point with the stability of a paycheck,” Smith said.
But others, especially in the swine industry, are feeling the pressure. “Some growers are looking to limit what they're shipping south of the border and see if they can get it processed up here instead,” he said.
That’s no easy task. With inflation driving up replacement costs for buildings and equipment, clients are walking a fine line between affordability and adequate coverage.
“The conversation being had at the kitchen table is, what can we do to make our insurance coverage still adequate but cost-effective at the same time?” Smith said. “We’re definitely not looking to sacrifice coverages or limits right now.”
Some farmers are considering higher deductibles or self-insuring smaller risks, but when it comes to business interruption coverage, the options are limited. "In our industry, there is no disruption insurance,” Smith said. “The only insurance we can offer for loss of income is due to an insured peril – fire, wind, that sort of thing.”
For broader economic risks, including market collapses or tariff fallout, farmers are largely on their own. And while crop insurance offers some relief, brokers like Smith don’t handle it directly. “We as an independent broker do not sell crop insurance. That's through the government, of course, through Agricorp,” he said.
While he recommends it to clients who can afford the rising premiums, others choose to self-insure – especially in areas they believe are low-risk. “I've seen it firsthand, where they'll insure farms in certain areas because they’re known for hail or bad winds. Other spots where they feel more secure, they won't insure the crops,” Smith said.
Even within a single province, the landscape is shifting. Zehr Insurance focuses on Ontario, and Smith has seen a wave of clients turning to diversification as land values soar – reaching up to $40,000 an acre in some areas.
“We are noticing ways of folks trying to diversify what they're able to do with their property and that large asset,” he said. That includes everything from agritourism ventures to specialty food production.
“There’s another farm not too far that provides meat and cheeses from water buffalo,” Smith said. “There's diversification even in crops – if we can get our winter wheat in the ground soon enough, can we get it off in time and even try to get a round of soybeans in behind it?”
Asked whether government incentives could help farmers produce more locally and reduce reliance on US markets, Smith didn’t downplay the scale of the challenge.
“It'd be awesome if there were additional incentives,” he said. “But you're talking an average farm of $4 million plus. You really got to have the backing – and the dreams and ambition – to make that work.”
In the meantime, brokers are being pushed to innovate. With input costs rising and commodity prices in flux, Smith said resilience depends on adaptability and strong carrier relationships.
“It comes back down to being a broker and having good relationships with the markets that you have, or even establishing new relationships,” he said. “Even though rates are going up, this is what we can offer you – and it’s in their best interest.”
For Smith, the goal isn’t cutting corners – it’s giving farmers the flexibility to keep going, even in one of the most turbulent financial periods the sector has faced in decades.
