A new livestock price insurance program will be available this spring to help cattle and hog producers in Western provinces manage price risks faced by the industry, says Agriculture and Agri-Food Canada. Federal Agriculture Minister Gerry Ritz was joined by Saskatchewan, Alberta and British Columbia’s agriculture representatives to unveil the new price insurance program today. Manitoba’s agriculture minister abstained due to there being a by-election currently running in Manitoba. Manitoba producers are expected to have access to the program, however.
According to an AAFC press release, the four-year Western Livestock Price Insurance Program (WLPIP) pilot is an arrangement between the federal government and the Western provinces to enhance risk management options available to the livestock industry. The pilot will help livestock producers protect themselves against unexpected price declines by allowing them to purchase insurance on an insured price selected by the producer from the available coverage levels.
Alberta introduced price insurance in 2009 for their cattle and hog producers sectors. This initiative expands the Alberta program to a regional model, opening it up first to livestock producers in British Columbia and Saskatchewan. Livestock producers can expect to receive WLPIP information in March from their provincial agriculture offices.
Alberta’s Agriculture Financial Services Corporation will be the central administrative body for the Program to maximize administrative efficiencies. In Saskatchewan, the Saskatchewan Crop Insurance Corporation will be the lead customer service delivery agent for the Program. Federal and provincial governments will cover administration and delivery costs for the pilot WLPIP through Growing Forward 2’s AgriRisk Initiatives – Administrative Capacity Building. The federal government will also provide deficit financing for the pilot.