The funds will help the organization develop a comprehensive consultation process to identify all the risks associated with farming in the province.
Those risks potentially include production, financial, labour, market, transportation and climate change.
The risk assessment will form the basis for future programs and initiatives in the agriculture sector.
“We have a vibrant agriculture industry in this province, and we must identify and address the key risks that farmers are facing in order to grow our industry, revitalize our rural economy, and increase our province's food self-sufficiency,” NLFA president Mervin Wiseman said in a news release.
The investment is being made through Agriculture and Agri-Food Canada's AgriRisk Initiatives (ARI), which supports the research and development as well as the implementation and administration of new risk management tools for use in the agriculture sector.
Newfoundland and Labrador's gross farm receipts in 2016 were $130 million, up 1.3 per cent from 2012. Nationally, there was an 8.9 per cent increase in farm cash receipts for the same period.