In an era of disruption, risk management will harvest success.
Learn about agribusiness market trends and insurance rate changes for 2023.
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Agribusiness
HUB 2023 Outlook
What's covered...
Setting the Scene
What to Expect in 2023
Make a Plan
About HUB
Profitability
Vitality
Resiliency
Safety and Security
Protect employees
Emphasize safety
Meet the Experts
HUB Agribusiness
Setting the Scene
Shortages and rising costs will frame risk.
Agribusiness must deal with risk perhaps more than any other industry. Soaring input costs, extreme weather, staff shortages and increasing cyber risks will threaten profitability, vitality and resiliency in 2023.
What to Expect in 2023
Farms and food manufacturers will need to manage costs while remaining flexible enough to take advantage of opportunities and market trends. Given the additional risks of catastrophic weather events and chronic labour shortages, a best-in-class risk management and insurance strategy — and nimble HR — will be key for agribusinesses to thrive in 2023.
Make a Plan
Download our 2023 Agribusiness Outlook and Insurance Market Rate Report to see what to expect in the coming year.
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Be Prepared
Emphasize onboarding and training.
Employees expect you to support their health, safety and wellbeing. Give them the ability to personalize their benefits without increasing costs, giving you a competitive advantage.
Understand your loss trends.
Close claims quickly at the lowest possible cost.
Protect employees.
Protect employees.
With many employers hiring less-experienced workers, it’s more important than ever to focus on onboarding and training to set the right expectations and avoid costly accidents and injuries.
Emphasize onboarding and training.
Understand the root cause of your large losses and explain to carriers what you’re doing to prevent future losses. Develop a strategy with HUB to determine the best time and frequency to review alternative markets.
Understand your loss trends.
Understand your loss trends.
Close claims quickly at the lowest possible cost.
Protect employees.
Emphasize onboarding and training.
Close claims quickly at the lowest possible cost.
Claims that take months or years to resolve will affect your long-term loss experience. Ask your broker for a claims management specialist who can help close claims quickly and with the best possible outcome.
Protect employees.
Emphasize onboarding and training.
Close claims quickly at the lowest possible cost.
Understand your loss trends.
Meet the Experts
Practice Leader
Agrbibusiness Practice
Josh Smart
Linkedin Profile
Risk Advisor
David Laks
Agribusiness Practice
Linkedin Profile
Expert
Ryan Matthews
Agribusiness Practice
Linkedin Profile
Expert
Scott Rasor
Agribusiness Practice
Linkedin Profile
Agribusiness
When you partner with us, you’re at the centre of a vast network of experts who will help you reach your goals. For more information on how to manage your insurance costs, reduce your risk and take care of your employees, talk to a HUB agribusiness insurance specialist.
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insurance policies managed
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wheat. Although double cropping isn’t always viable, taking advantage of such opportunities are critical for agribusiness profitability.
Vertical integration and commodity futures to lock in prices are time-tested ways to help tame input costs and improve efficiency. But many threats to profitability in 2023 will be largely out of producers’ control, requiring strong risk, insurance and financial strategies to remain profitable.
Managing input costs and risk will drive profitability in 2023.
Russia’s invasion of Ukraine in February 2022 and China’s zero-COVID policy exacerbated global supply chain disruption. Sharp reductions in fertilizer, seed and fuel production have resulted in price spikes of inputs and higher product costs.
Food prices jumped nearly 10% from August 2021 to August 2022, including basic staples such as fruit, vegetables and meat. A likely drop in the global wheat harvest due to the war in Ukraine — which produces 20% of the world's high-grade wheat and 7% of the global total — will inflame price hikes, stunting demand.
Staying profitable in this environment demands flexibility. For example, several farmers in Ontario took advantage of weather and market conditions to double crop their land in late 2021, harvesting soybeans on acreage that had yielded winter
1. Statistics Canada, “Rising prices are affecting the ability to meet day-to-day expenses for most Canadians,” June 9, 2022.
Safety and Security
Resiliency
Vitality
Profitability
Safety and Security
Resiliency
Vitality
Profitability
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It's important that companies reallocate
dollars to the benefits that are most important
to employees.
Leveraging data to create personalized benefits may sound like a distant possibility for most agribusinesses. But personalizing benefits leads to positive employee experiences — and a benefits strategy centred on delivering quality experiences helps meet employees’ evolving needs and builds a workplace that attracts and retains workers.
Investing in employees will help tame the labour shortage.
As workers have re-evaluated their priorities and goals in the wake of the COVID-19 pandemic, agribusiness, like many industries, has had difficulty in recruiting and retention.
Although the pandemic’s direct impact on labour has largely subsided, the aftershocks remain, as the agribusiness labour shortage will reach 123,000 workers by 2029. Today, nearly half of food manufacturers are unable to fill needed positions, and worker shortages are likely to continue throughout 2023.
To reduce turnover and the number of workplace injuries, agribusinesses will need to emphasize worker training and onboarding.
Agribusinesses also are re-evaluating their compensation and benefits packages.
4. Canadian Agricultural Resource Council, “Agriculture business case competition engages post-secondary students on campuses across Canada,” November 25, 2021.
Take steps to make yourself a better risk
Take steps to make yourself a better risk
Take steps to make yourself a better risk
Take steps to make yourself a better risk
Safety and Security
Resiliency
Vitality
Profitability
Given this environment in 2023, staying resilient is directly tied to strong risk management. The cost of crop insurance will increase, as premiums are directly related to commodity prices. Farmers need to determine the level of risk they’re willing to tolerate in an era of more catastrophic weather events. For agribusinesses as a whole, rates will rise across the board, with heightened pressure on excess liability coverage, property and cyber liability coverage.
Given this environment in 2023, staying resilient is directly tied to strong risk management.
The cost of crop insurance will increase, as premiums are directly related to commodity prices. Farmers need to determine the level of risk they’re willing to tolerate in an era of more catastrophic weather events. For agribusinesses as a whole, rates will rise across the board, with heightened pressure on excess liability coverage, property and cyber liability coverage.
Managing catastrophes, COVID, consolidation and control systems.
Severe weather is occurring with greater frequency and impact, and 2023 will continue that trend.
Climate change-related storms, heatwaves, hail and flooding remain a challenge for farmers and food manufacturers, which must anticipate and manage these risks to remain viable. Additional risks include possible business closures from new COVID-19 variants. Tightening credit markets are likely to strain an agribusiness’ finances, which may lead to business closures and industry consolidation.
In addition, underwriters are inspecting industrial control systems before offering coverage. Without such controls set properly, food manufacturers can face substantial damage to the manufacturing line.
1. Lorem ipsum dolor sit amet, “consectetur adipiscing lorem elit” Ipsum dolor sit amet, 2022
Safety and Security
Resiliency
Vitality
Profitability
Food recalls will remain a major risk for food manufacturers. In previous years, undeclared allergens were a major cause of recalls, while 2022 has brought an increasing number of listeria concerns.7
Assess and address your areas of greatest risk. Protect food and beverage systems from cyberattack, and be prepared for cyber coverage rate increases of 10% to 20% in 2023. Product recall insurance and product liability coverage can protect food manufacturers from costs related to product recalls and liabilities, which can run into the millions of dollars.
Food recalls will remain a major risk for food manufacturers. In previous years, undeclared allergens were a major cause of recalls, while 2022 has brought an increasing number of listeria concerns.
Assess and address your areas of greatest risk. Protect food and beverage systems from cyberattack, and be prepared for cyber coverage rate increases of 10% to 20% in 2023. Product recall insurance and product liability coverage can protect food manufacturers from costs related to product recalls and liabilities, which can run into the millions of dollars.
Protection will yield results against cybercrime and safety risks.
Cyber risks will continue to be a critical security concern. Both on the farm and in the factory, agribusiness has turned to automation to cope with labour shortages and improve quality.
However, this shift has increased exposure to cyber risks, as bad actors can potentially hijack manufacturing equipment, farm machinery or computer networks. Risks include reputational damage, the financial loss of a ransomware attack and production downtime in the event of a manufacturing shutdown. Food safety also becomes an issue with cyberattacks.
Monitoring control systems, employee cybersecurity training, adoption of multi-factor password authentication and cyber insurance can help manage cyber risk.
7. Government of Canada, “Recall and safety concerns,” accessed October 8, 2022.
HUB agribusiness specialists will work with you to develop a tailored strategy that will protect the bottom line, support your workforce and build resiliency for 2023.
Here are some initial considerations:
HUB agribusiness insurance specialists will work with you to develop a tailored strategy that will protect your bottom line, support your workforce and build resiliency for 2023.
Here are some initial considerations:
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Be prepared.
Talk to a HUB advisor today.
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Be prepared.
Talk to a HUB advisor today.
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Be prepared.
Talk to a HUB advisor today.
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HUB
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Understand loss trends
Close claims quickly
2. The Washington Post, "Ukraine’s wheat harvest, which feeds the world, can’t leave the country," April 7, 2022.
3. Farmers Forum, “Farmers score double-crop in a year that could — soybeans followed winter wheat,” November 30, 2021.
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6. Canadian Agricultural Human Resource Council, “CAHRC Province Dashboard: Prairies,” accessed October 8, 2022.
5. HUB International, “Voluntary Benefits Help Counter Worker Shortages in Food and Beverage,” April 5, 2022.
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6
7
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1. Statistics Canada, “Rising prices are affecting the ability to meet day-to-day expenses for most Canadians,” June 9, 2022.
1. Statistics Canada, “Rising prices are affecting the ability to meet day-to-day expenses for most Canadians,” June 9, 2022.
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5
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4. Canadian Agricultural Resource Council, “Agriculture business case competition engages post-secondary students on campuses across Canada,” November 25, 2021.
5. Canadian Agricultural Human Resource Council, “CAHRC Province Dashboard: Prairies,” accessed October 8, 2022.
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1. Statistics Canada, “Rising prices are affecting the ability to meet day-to-day expenses for most Canadians,” June 9, 2022.
2. The Wilson Center, “Forty Percent of the World Food Program’s Wheat Supplies Come from Ukraine,” June 2, 2022
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4. Canadian Agricultural Resource Council, “Agriculture business case competition engages post-secondary students on campuses across Canada,” November 25, 2021.
6. HUB International, “Voluntary Benefits Help Counter Worker Shortages in Food and Beverage,” April 5, 2022.
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9.7%
Food prices rose
from August 2021 to 2022.
50%
of food manufacturers unable to fill
positions.
The number of unfilled agribusiness jobs by 2029.
123,000:
Practice Leader
Josh Smart
Agrbibusiness Practice
Linkedin Profile
Risk Advisor
David Laks
Agribusiness Practice
Linkedin Profile
Expert
Ryan Matthews
Agribusiness Practice
Linkedin Profile
Expert
Scott Rasor
Agribusiness Practice
Linkedin Profile
Practice Leader
Agrbibusiness Practice
Josh Smart
Linkedin Profile
David Laks
Risk Advisor
Agribusiness Practice
Linkedin Profile
Ryan Matthews
Expert
Agribusiness Practice
Linkedin Profile
Scott Rasor
Expert
Agribusiness Practice
Linkedin Profile
Practice Leader
Agrbibusiness Practice
Josh Smart
Linkedin Profile
David Laks
Risk Advisor
Agribusiness Practice
Linkedin Profile
Ryan Matthews
Expert
Agribusiness Practice
Linkedin Profile
Scott Rasor
Expert
Agribusiness Practice
Linkedin Profile
Practice Leader
Agrbibusiness Practice
Josh Smart
Linkedin Profile
David Laks
Risk Advisor
Agribusiness Practice
Linkedin Profile
Ryan Matthews
Expert
Agribusiness Practice
Linkedin Profile
Scott Rasor
Expert
Agribusiness Practice
Linkedin Profile
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Statistics Canada, “Rising prices are affecting the ability to meet day-to-day expenses for most Canadians,” June 9, 2022.
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