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 December. This program provides an easy-to-use risk management tool that provides beef producers the ability to manage price risk. Cow-calf producers can purchase coverage from February to May each year, with policies expiring during the fall calf run from September to December.
Frequently Asked Questions
Historically, the volume of calves sold outside of the fall calf run has been too low to provide the accurate market data needed to generate coverage and premium levels. Calf policies are offered from February 1 to May 30, 2019.
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
Yes, heifers can be insured under any one of the Cattle Price Insurance Programs. However, coverage and settlement of the Feeder and Calf programs are based on average weekly steer prices. Indemnity is based on a comparison between the published steer settlement price and the producer’s chosen level of insured coverage. The difference determines if there was a decline in projected cattle prices from the time the producer purchased the policy.
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 WLPIP 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 WLPIP Call 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 WLPIP home page and then “Create new web account” to get started.
If you are having any problems accessing or purchasing your WLPIP policy online, please contact your local AFSC office.