However, economic returns to farmers, especially in years of climatic extremes, are influenced by various forms of government compensation, subsidy and assistance. The ultimate financial effect of extreme climatic conditions on farms is greatly influenced by the economic role of government programs. Nature of Government Programs Governments have a huge influence on the economics of agriculture in light of climatic variability. A wide array of programs relating to commodities, trade, income stabilization etc. have indirect effects on how farm economics are impacted by climate events and how they adapt. In addition there are numerous established and ad hoc programs directly related to climate.
Provinces also provide financial assistance to farmers susceptible to climatic variations.
This suggests that taxpayers, via government programs, are absorbing more of the climate - related risks in farming. The role of government subsidies as a response of the broad agricultural system to climate-related impacts is illustrated in Figure 3 . At the level of individual farms there are differences in participation in programs from farm to farm, region to region, and from year to year. Figure 4 shows changes over time for Saskatchewan crop insurance. Figure 4 illustrates a strong one-year lag in investment in insurance following variations in climatic conditions.