In April of 2014, Saskatchewan cattle and hog producers gained access to a new risk management tool, the Western Livestock Price Insurance Program (WLPIP). As part of a pilot program through the Growing Forward 2 Agreement, Saskatchewan along with Manitoba, British Columbia and Alberta joined together to deliver a unique risk management program for offsetting the risk of declining livestock markets. After a successful first year of operation the Saskatchewan Crop Insurance Corporation (SCIC), which delivers the program in the province, is expecting an even better second year.
WLPIP provides producers with the ability to protect a market price for their calves, feeder cattle, finished cattle or hogs. The producer will pay a premium to receive forward price coverage; if the market price falls below the coverage price, in the time frame selected, the producer receives a payment. While the first year of operation has not produced any claims, it has added a level of security allowing livestock producers to focus on successfully operating their farms knowing there is protection should something happen to the markets lowering the value of their herds.
“We are expecting more price insurance policies to be purchased in this second year as producers become more familiar with the program,” said Shawn Jaques, SCIC President and CEO. “The strong livestock market means producers can protect some very high market prices should something happen to turn the market lower.”
Producers are encouraged to review the range of coverage and premium options, finding the best fit for their operation. Even the lower coverage options for the calf program are at levels historically viewed as profitable for cattle producers and they can be purchased for a lower premium.
May 28, 2015, is the last day price protection can be purchased for spring born calves that are traditionally marketed in the fall. Price insurance for the feeder cattle, finished cattle and hogs can be purchased year-round.
Price insurance is purchased through an online process. If a producer does not have an online account they can contact their local Crop Insurance office to start the application process. Once the producer has set up their online account they can conduct the remainder of their business through the online system.
