Cattle Price Insurance
Every type of beef operation faces price, basis and currency risk; however, based on the product being produced and marketed, the producer is impacted differently by each.
To provide adequate protection, each of the three cattle insurance programs is designed to target a different stage of production.
Calf Price Insurance
Producers can tailor coverage by purchasing price insurance for intended marketings from September to February. This program provides an easy-to-use risk man¬agement tool that provides beef producers the ability to manage price risk. Cow-calf producers can purchase coverage from February into June each year, with policies expiring during the fall run and into the new year from September to February.
Frequently Asked Questions
Monitoring the LPI premium tables is a prudent strategy to making sound business decisions. As the markets fluctuate, producers are able to capitalize on coverage advantageous to their operation. Additionally, purchasing multiple policies over a period of time distributes risk, as opposed to buying coverage for all animals at once.
Insuring animals with different policy expiry dates can be a beneficial way to split marketing and price risk, particularly if producers sell animals over a few weeks of time.
Feeder Price Insurance
The program is based on local markets and helps producers who background cattle better manage the risks in today’s unpredictable cattle market. Price, currency and basis risk make up a significant portion of the risk of feeding cattle and can be traditionally hard to manage. This program is designed to be market driven to reflect the risks a producer in Western Canada faces and to be simple and easy to understand.
Frequently Asked Questions
When a producer purchases a LPI insurance policy, it protects the producer’s investment on calves, feeders, fed cattle and hogs. This program allows producers to retain the increase in the market price while still having peace of mind of protection from a potential market downturn.
Fed Price Insurance
Producers pay a premium up front in order to purchase protection. Fed coverage is available for fed cattle intended for sale 12 to 36 weeks from the date of purchasing the coverage. Price insurance takes the difficulty out of managing all three risks that producers face (price, currency and basis) and combines them into one product. It directly reflects the risk of Western Canadian cattle prices and fills this gap in price risk management.
How to Participate
Purchasing livestock price insurance is a three step process:
- New LPI client, must apply for an identification number and subscription number. Producers can do this by downloading the forms from the Resource page, calling your local AFSC office or the LPI Client Contact Centre at 1.844.782.5747.
- Specify which program you are applying for on the form (a separate application must be completed for access to each WLPIP program). Once completed and eligibility is confirmed, you will be able to purchase the WLPIP to which you have subscribed.
- Click “Login” on the LPI home page and then “Create new web account” to get started.
If you are having any problems accessing or purchasing your LPI policy online, please contact your local AFSC office.