One could view these extra payments as necessary to stabilize the sector. I won't spend any more time on GRIP or NISA, since we are talking about climate. The primary vehicle in that context now for governments is yield insurance. There had been attempts previous to that by private-sector insurance companies to meet the need, but unfortunately, with the high variability, these didn't last too long. That is why government became involved.
Provinces have the jurisdiction over insurance, but for agriculture responsibility is split.
There is a deductible in the range of 20 to 30 percent of long-term yields. There are three main requirements to obtain federal premium assistance. Premium rates must be certified by an actuary, who must also attest to the self-sustainability of the insurance scheme, and the annual yields must reflect production capabilities of producers. There is a high degree of flexibility within a province in terms of design and distribution of the risk. There can be individualized or area-based coverage.