Livestock Price Insurance
Livestock Price Insurance (LPI) is a risk-management tool which allows producers to purchase price protection on cattle and hogs in the form of an insurance policy. The program is available in British Columbia, Alberta, Saskatchewan, and Manitoba and provides producers with protection against an unexpected drop in prices over a defined period of time.
Program Background
LPI is built on the experience and expertise Alberta has gained since initiating livestock price insurance in 2009. In 2012, all four western provinces with the federal government analyzed the potential for expanding the program to all Western producers. It was determined all Western producers would benefit from access to this risk management program and there were considerable cost savings and efficiencies to be gained by expanding Alberta’s existing program to the other provinces.
Agriculture Financial Services (AFSC) administers Livestock Price Insurance for the province of Alberta. AFSC staff can guide you through the program’s benefits and help you pick the coverage that is best for your risk tolerance and financial goals.
LPI provides protection against fluctuating markets
Every type of beef operation faces price, basis and currency risk; however, the producer is impacted differently by each risk based on the product being produced and marketed.
Learn MoreHog price insurance is designed to provide producers with protection against declining hog prices.
Learn MoreFrequently 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.
