Producers praise new Saskatchewan livestock insurance program

REGINA – Cattle and hog producers are praising a new insurance program that will help bring some price consistency to a volatile market.

The Western Livestock Price Program was announced in January, but beginning Wednesday producers can apply to it.

“We worry about the price of grain, price of feed, Canadian dollar and other commodities,” said Calvin Knoss, past president of the Saskatchewan Stock Growers Association. “Then we get hit by something that we didn’t see coming that can bring our incomes down drastically.”

Livestock producers are accustomed to a volatile market such as the price drop during the BSE (mad cow disease) crisis, but this program will help smooth that ride.

“It’s a no-brainer, in this current year and going forward” said Kevin Woods, director with Saskatchewan Cattle Feeders Association. “Ever since Alberta announced their program, we’ve been looking at it with envy.”

The province says prices for cattle and hog are at a record high this year, so timing to test out the program is optimal.

“You’re going to put quite a good dollar on the table for those animals and it’s nice to have kind of a guaranteed price, or low level price, that you can have guaranteed to you in the fall,” said Paula Larson, chair of the Saskatchewan Cattlemen’s Association.

Producers will pay a premium up front, and if the selling price falls below a payment is awarded.

A similar livestock insurance program has been operating in Alberta since 2009, but it’s now been expanded to include British Columbia, Saskatchewan and Manitoba.

“I hope uptake will be fairly strong but we expect it will grow over the next few years as producers become more familiar and comfortable with the program,” said Agriculture Minister Lyle Stewart.

In Alberta, 17 per cent of the calves and fed cattle are insured through the province’s livestock insurance program as are 50 per cent of the feeders.

Prices for the western program will be based on Canadian market value: “It really is a local price. Not so much influence by us prices as some programs are,” said Stewart.

Larson said the program is especially beneficial for younger producers.

“If you’re just getting up and running and you’ve got to make payments on land and purchase those cattle. Having that insurance on that cattle is very very good opportunity,” said Larson.

Producers should contact the AgiInsurance agency for information on how to apply.

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.