News Feed Item

New Price Insurance Product for Western Livestock Producers

Harper Government partners with provinces to launch an innovative inter-provincial approach to protect producers from price declines

CAMROSE, ALBERTA -- (Marketwired) -- 01/24/14 -- Agriculture and Agri-Food Canada

An innovative 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. Federal Agriculture Minister Gerry Ritz, Saskatchewan Agriculture Minister Lyle Stewart, Alberta Agriculture Minister Verlyn Olson, and MLA Donna Barnett (Cariboo-Chilcotin), on behalf of British Columbia Agriculture Minister Pat Pimm unveiled the new price insurance program today at the Canadian Bull Congress in Camrose.

The four-year Western Livestock Price Insurance Program (WLPIP) pilot is a unique collaborative 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. Premiums fully funded by producers.

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.

Quick Facts

--  Alberta's Agriculture Financial Services Corporation will be the central
    administrative body for the Program to maximize administrative

--  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.


"This historic initiative is a great example of collaboration among federal and provincial governments and industry to strengthen risk management options for producers. Our Government will continue to work closely with the Provinces and industry to ensure producers have access to the tools they need to grow their businesses and our overall economy."

- Gerry Ritz, Federal Agriculture Minister

"We have been committed to working with the industry to provide price insurance for our cattle and hog producers to help them better manage risk and grow the industry. This has been a top priority for our government and I am pleased to partner with the federal government and the western provinces to offer livestock price insurance."

- Lyle Stewart, Saskatchewan Agriculture Minister

"This program was pioneered in Alberta, in partnership with producers. Expanding this insurance option to other provinces will help the Western Canadian livestock industry protect itself from significant price downturns while also ensuring the program is delivered efficiently."

- Minister Verlyn Olson, Alberta Agriculture and Rural Development

"B.C. livestock producers have expressed great interest in having more tools that help them manage their price risks and the B.C. government is proud to have worked with our partners to deliver a Western Canadian program. Providing predictable and cost effective insurance products will help our cattle and hog producers manage their businesses and focus on longer term operations."

- Donna Barnett, MLA for Cariboo-Chilcotin, on behalf of B.C. Agriculture Minister Pat Pimm

"This program gives more producers access to a solid tool to manage price and basis risk, one of the more unpredictable aspects of managing an operation. Market-based risk management is key to better managing volatility."

- Martin Unrau, President, Canadian Cattlemen's Association (CCA)

Related Products

- Backgrounder - Western Livestock Price Insurance Program

Associated Links

- Program website - Western Livestock Price Insurance Program

- Growing Forward 2 - AgriRisk Initiatives

- AFSC Livestock Price Insurance Program


Western Livestock Price Insurance Program

As part of the Growing Forward 2 (GF2) framework agreement, federal, provincial and territorial (FPT) Ministers of Agriculture made a commitment to encourage the development and implementation of new risk management tools for agricultural producers, including private sector risk management tools. To this end, the federal government and Western provinces have been working in collaboration to explore the feasibility of a livestock price insurance program.

Livestock producers face a substantial risk from unexpected price declines. Unlike crop producers, who have access to production insurance under the AgriInsurance program, livestock producers have fewer risk management options available to them.

The four-year pilot Western Livestock Price Insurance Program (WLPIP) will enable livestock producers to protect themselves against unexpected price declines beyond market expectations by allowing them to purchase insurance coverage, while still being able to take advantage of favorable market conditions if livestock prices should rise. Producers will select from a range of coverage and policy options to help them manage price risk. Indemnity payments will be paid to producers if the settlement price is less than the insured price. This pilot program is actuarially sound and self-sustaining, with premiums fully funded by producers.

Alberta first introduced price insurance in 2009 for fed cattle. Since then, Alberta broadened its livestock insurance programming to include feeder cattle, calves and market hogs covering price and basis risks. Through a unique collaborative arrangement between the federal and provincial governments, Alberta's existing program will expand to a regional model, offering a voluntary, simple and easy to understand price insurance product to livestock producers across Western Canada.

Alberta's Agriculture Financial Services Corporation (AFSC) will be the central administrative body for the program, using their experience with existing programs to maximize administrative efficiencies, which will allow for a rapid implementation of the expansion to the rest of the Western provinces.

Federal and provincial governments will cover administration and delivery costs for the pilot WLPIP through GF2 AgriRisk Initiatives - Administrative Capacity Building stream, which provides assistance for the implementation of new risk management tools. Canada will also provide deficit financing for the pilot. Near the end of the four-year pilot, governments will initiate a review of program operations and management and will consider its potential beyond the GF2 framework agreement.

Western Cattle Price Insurance

Cattle price insurance is reflective of price in the producer's local market, and coverage options are designed to reflect differences in localized prices and risk for different commodities. WLPIP 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. A new settlement index will be created to represent Western regional markets for feeders and calves.

Western Hog Price Insurance

Hog price insurance is designed to offer coverage based on current Western Canadian market conditions. Producers decide on the level of coverage, policy length and the amount of weight to insure. Settlement is based on the monthly average price of hogs sold in several Western Canadian markets. If the market goes above the insured price, producers can still take advantage of the upside and sell hogs for that higher price.

Livestock producers can expect to receive WLPIP program information in March from their provincial agriculture office. Further information on the pilot Western Livestock Price Insurance Program is available at www.wlpip.ca.

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
Follow us on Twitter: @AAFC_Canada

Jeff English
Director of Communications
Office of the Honourable Gerry Ritz

Rae Groeneveld
Saskatchewan Crop Insurance Corporation
Melville, Saskatchewan

Chelsea Donahue
Agriculture Financial Services Corporation
Lacombe, Alberta

Robert Boelens
Government Communications and Public Engagement
B.C. Ministry of Agriculture

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...