The Western Livestock Price Insurance Program (WLPIP) has been around for more than four years, and this year they’ve added a feature to help producers cover the premium.
New this year, the premium paid can be put on account – subject to interest. Ranchers then have until the expiration of their policy to pay their account. This will allow producers to participate in the program without having to immediately access operating capital for payment.
Prior to this, the only other three options were to pay the premium up-front, online, or in person by cheque.
WLPIP is available to those who live in the four western Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba. The insurance program helps producers when there’s an unexpected drop in in market prices by creating an insurable floor price on cattle and hogs.
“WLPIP is a good example of governments and industry working together to offer an innovative risk management tool that responds to the unique needs of the livestock sector, ensuring our hard-working farmers can continue to grow the economy and create good, middle class jobs,” Agriculture Minister Lawrence MacAulay says in a news release. “Livestock price insurance is a good complement to existing business risk management programs, offering additional protection against market volatility.”
By the numbers, approximately $405,000 was paid out to Saskatchewan cow/calf producers in the fall of 2017. In Manitoba, WLPIP has insured more than 191,000 cattle and paid $3 million in indemnities against drops in the market since the program started in 2014.