Released on January 24, 2014
Harper Government partners with provinces to launch an innovative inter-provincial approach to protect producers from price declines
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 are fully funded by producers.
The four-year pilot WLPIP is a unique collaborative arrangement between the federal government and the western provinces to enhance risk management options available to the livestock industry. Alberta introduced price insurance in 2009 for their cattle and hog producer 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 program 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.
"This historic initiative is a great example of collaboration among federal and provincial governments and industry to strengthen risk management options for producers," Ritz said. "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."
"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," Stewart said. "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."
"This program was pioneered in Alberta, in partnership with producers," Olson said. "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."
"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," Barnett said. "Providing predictable and cost effective insurance products will help our cattle and hog producers manage their businesses and focus on longer term operations."
"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," Canadian Cattlemen's Association President Martin Unrau said. "Market-based risk management is key to better managing volatility."
Associated Links
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For more information, contact:
Agriculture and Agri-Food Canada
Ottawa
Phone: 613-773-7972
Jeff English
Office of Gerry Ritz
Phone: 613-773-1059
Rae Groeneveld
Saskatchewan Crop Insurance Corporation
Melville
Phone: 306-728-7595
Email: rae.groeneveld@scic.gov.sk.ca
