Applications are now being accepted for a new livestock price insurance product designed to help cattle and hog producers manage unexpected price declines.
The Western Livestock Price Insurance Program (WLPIP), announced by federal and western provincial ministers on Jan. 24, enables livestock producers to purchase price protection on cattle and hogs in the form of an insurance policy. This new insurance product offers protection against an unexpected drop in prices over a defined period of time, and is available to producers in British Columbia, Alberta, Saskatchewan and Manitoba.
Administration costs are covered by the federal and provincial governments through Growing Forward 2 while premiums are fully funded by producers.
- Western Cattle Price Insurance will help reduce producers’ exposure to price and basis risk. Producers have the option of insuring their calves, feeders, or fed cattle as well as selecting only basis protection for fed cattle.
- Western Hog Price Insurance is designed to offer coverage based on current Western Canadian market conditions.
- Alberta’s Agriculture Financial Services Corporation (AFSC) will be the central administrative body for the program to maximize administrative efficiencies.
- Producers can contact their provincial AgriInsurance agency for information on how to enrol.
“This spring, western cattle and hog producers are encouraged to make livestock price insurance an integral part of their business plans,” said Gerry Ritz, Federal Agriculture Minister. “Our government will continue to work with the provinces and industry to develop new and innovative risk management tools for Canada’s world-class agriculture industry.”
“WLPIP is an important new risk management tool for Manitoba’s livestock producers,” Minister of Manitoba Agriculture, Food and Rural Development Ron Kostyshyn said. “Now that applications are being accepted, I encourage beef and hog producers to learn more about the program and how it can provide price protection on their farm.”
“I would encourage cattle and hog producers to look closely at this program and see whether it can be a part of their risk management strategy,” Saskatchewan Agriculture Minister Lyle Stewart said. “Producers can visit their local Saskatchewan Crop Insurance office to learn more and get started.”
“Alberta’s Agriculture Financial Services Corporation, along with Alberta producers, spearheaded this program,” Alberta Agriculture and Rural Development Minister Verlyn Olson said. “Expanding livestock price insurance across western Canada will benefit the livestock industry, and help producers manage price risk with flexibility and ease.”
“Livestock production insurance is one more way the B.C. government has worked with our federal and provincial partners to help ranching families and the livestock sector in our province succeed,” B.C. Agriculture Minister Pat Pimm said. “This insurance means cattle and hog producers can be prepared for price fluctuations and is something all ranchers should give serious thought to including in their business plans.”