Welcome!

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
    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.


Quotes

"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

BACKGROUNDER

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.

Contacts:
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
Follow us on Twitter: @AAFC_Canada

Jeff English
Director of Communications
Office of the Honourable Gerry Ritz
613-773-1059

Rae Groeneveld
Saskatchewan Crop Insurance Corporation
Melville, Saskatchewan
306-728-7595

Chelsea Donahue
Agriculture Financial Services Corporation
Lacombe, Alberta
587-877-7361

Robert Boelens
Government Communications and Public Engagement
B.C. Ministry of Agriculture
250-356-1674

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
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...