REGINA – A new livestock price insurance tool that hit the market Wednesday should help protect livestock producers against unforeseen price declines.
The Western Livestock Price Insurance Program (WLPIP), announced late in January, will allow livestock producers to purchase price protection insurance on cattle and hogs.
“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.”
“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.”
The insurance offers protection against an unexpected drop in prices over a defined period of time and is available in B.C., Alberta, Saskatchewan and Manitoba.
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.
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