Applications for Western Livestock Price Insurance Now Available

New insurance tool will protect livestock producers against price declines 

April 9, 2014 – Ottawa, ON – Agriculture and Agri-Food Canada                                             

cattleApplications 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 January 24, 2014, 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.

Quick Facts

  • 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 enroll.  

Quotes

“This spring, Western cattle and hog producers are encouraged to make livestock price insurance an integral part of their business plans. 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.”

–       Gerry Ritz, Federal Agriculture Minister

“WLPIP is an important new risk management tool for Manitoba’s livestock producers.  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.”

–       Ron Kostyshyn, Minister of Manitoba Agriculture, Food and Rural Development”

“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. Producers can visit their local Saskatchewan Crop Insurance office to learn more and get started ”

–        Lyle Stewart, Saskatchewan Agriculture Minister

“Alberta’s Agriculture Financial Services Corporation, along with Alberta producers, spearheaded this program. Expanding livestock price insurance across Western Canada will benefit the livestock industry, and help producers manage price risk with flexibility and ease.”

–       Minister Verlyn Olson, Alberta Agriculture and Rural Development

“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. 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.”

–       Pat Pimm, B.C. Agriculture Minister

Associated Links and Contacts

Important Dates

Products began to be sold April 8, 2014. Products are not available for sale or settlement on statutory holidays.

  • Calf Product

Purchase dates are normally February – May with settlement dates are normally September – December.
Products will be available for purchase until May 29 for the 2014 calf crop.

  • Fed Cattle and Basis Products

Products are available for purchase throughout the year.
Contracts range from 12-36 weeks in length.
Contracts could begin settling the week of July 8, 2014 at the earliest.

  • Feeder Cattle Product

Product is available for purchase throughout the year, however there are no settlement of contracts in June or July.
Contracts range from 12 – 36 weeks in length.
Contracts could begin settling the week of July 8, 2014 at the earliest.

  • Hog Products

Products are available for purchase throughout the year.
Contracts range from 2 – 10 months in length.
Contracts could begin settling the week of June 8, 2014 at the earliest.