Do Ontario Livestock Producers Need a Risk Management Solution Like Alberta – Ernie Hardeman, MPP

Managing risk is a major part of running any farm or livestock operation. Alberta recently tried to aid it’s provincial livestock producers by launching the Cattle Price Insurance Program (CPIP). Recently Ontario Provincial Ag-Critic, Mr. Ernie Hardeman, MPP, questioned why the Ontario government was stalling in implementing a similar program to ensure Ontario producer competitiveness.  Hardeman is wondering why the Ontario government is not re-allocating some of the money from the recent grains and oilseeds program to create a livestock program that is similar.

According to Hardeman, Ontario producers have no mechanism to manage risk when taking into consideration cost of production and other factors.

See the ONTARIO FARMER story on Mr. Hardeman’s Comments

Ernie Hardeman, MPP is the provincial ag critic for the Ontario provincial conservatives and he is concerned that Ontario livestock producers are being left behind in comparison to Alberta.

If you cannot see the embedded video below, click here

 

Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

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2 Comments

Jennifer Wood

Hi Shaun – Interesting interview. It is important to note that the Cattle Price Insurance Program is not a cost of production program, but rather a program that is based on the CME futures, adjusted for the exchange rate and cash to futures basis. Premium is also driven by volatility that comes from CME options. Finally, premiums are producer funded, with provincial dollars only covering administrative costs (and development).

Due to this market driven nature, producers looking to protect a break even may not always find favourable coverage being offered – this fall is a good example of that with high calf prices.

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Shaun Haney

I actually asked him a couple times about the farmers ability to buy a put option and I’m not sure Mr. Hardeman was listening or had an answer to that. Maybe send his office some info on what CPIP is. Thanks for the clarification.

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