I have been getting a number of calls from feedlot producers to discuss the new Cattle Price Insurance Program (CPIP) that will be launched by AFSC this summer for Albertan cattle feeders. I talked to Susan Crump, Senior Project Manager, Program Development and Policy at AFSC about some of the preliminary details of the coming program.
Shaun: What choices will the producer have? Will the feedlot have to decide 100% or none of his feedlot.
Susan Crump: The feedlot owner will have the option to insure as much as he or she wants on a lot by lot basis. Some lots could be insured while others not. This program is not mandatory.
Shaun: What is the premium per head to participate in the program?
Susan Crump: I cannot give you an accurate number at this point. I can tell you that the premium will fluctuate with the volatility of the futures market. The lower the beta of the futures price the lower the premium.
Shaun: Is this a program accessible by non-Albertans feeding in Alberta feedlots.
Susan Crump: This is a insurance program that is backed by the Alberta government and so it is only open to residents of Alberta. People from outside the province and feeding cattle in Alberta feedlots will not be able to participate in the program.
Shaun: Do you see other production based insurance riders coming in the future. For example, death loss insurance on calves.
Susan Crump: It has been something that has been talked about but the reality is that the demand would be quite low so at this time it will not be a focus.
A special thank you to Susan Crump from AFSC for taking time for the interview.
Last weeks press release discussing the programs background and future launch.