Western Livestock Price Insurance Program

 
 
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Program Information
 
 
 

Agency:

AFSC

For Further Information Contact:

Tel: 1-877-899-2372
Web: http://www.afsc.ca
Email: afsc.webmaster@afsc.ca
 
 

 
Program Details
 
 
  The Western Livestock Price Insurance Program (WLPIP) is a risk management tool, allowing producers to purchase price protection on cattle and hogs, in the form of an insurance policy. Available in British Columbia, Alberta, Saskatchewan and Manitoba, the program provides producers with protection against an unexpected drop in prices over a defined period of time.

Visit the AFSC website for further information about the Western Livestock Price Insurance Program

Western Cattle Price Insurance Program (WCPIP)

The Western Cattle Price Insurance Program is designed to be a simple and easy to understand tool Alberta beef producers can use to help manage risks they face feeding cattle. Reflective of the Alberta market, the program is a ‘made in Alberta’ solution to price, basis and currency risk. Through the Western Cattle Price Insurance Program, three products are offered tailored to every aspect of the beef production chain.

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.

WCPIP-Fed:The Western Cattle Price Insurance Program (WCPIP) for fed cattle offers two types of policies: one for price risk and the other for basis risk. Producers pay a pre­mium up front in order to purchase WCPIP protection. WCPIP - Fed coverage is available for fed cattle intended for sale 12 to 36 weeks from the date of purchasing the coverage.

WCPIP-Feeder: WCPIP - Feeder is an easy to use risk management tool that provides beef producers with protection against price risk, currency risk and basis risk. The program is based on local markets and will help producers who background cattle to better manage the risks in today’s unpredictable cattle market.

CPIP-Calf: The Western Cattle Price Insurance Program (WCPIP) for calves is an easy to use risk man­agement tool that provides beef producers the ability to manage price risk. WCPIP - Calf is designed for the cow - calf producer to purchase coverage from Feb­ruary to May each year, with policies expiring during the fall calf run from September to December.

Western Hog Price Insurance Program (WHPIP)

The Western Hog Price Insurance Program is designed to provide producers with protection against declining hog prices. Hog producers have the option to purchase an insurance policy based on a forecasted hog price. When the policy expires the coverage purchased is compared to a settlement price. If the settlement price is below the insured price, a payment of the difference is made.

WHPIP is a simple and easy to understand risk management tool for Western Canada's hog producers. The program strives to be timely and market driven. Hog producers have the ability to choose an insured price, providing them with a "floor" price that acts as protection against drops in the market for the month insurance is purchased for.

The Western Hog Price Insurance Program (WHPIP) was developed with the aim of enhancing Western Canadian hog producers’ ability to manage price volatility in the hog market. WHPIP offers a risk management alternative to futures and options, with a highly transparent, fixed cost to the producer. There is no minimum weight to insure; as such it is is a tool available to both large and small producers. Participation is voluntary and flexible as there are a range of coverage levels and policy lengths offered, allowing producers to tailor coverage to their own operations and risk preferences.

Under the Hog Price Insurance Program, producers will have the option to purchase an insurance policy based on a forecasted hog price. When the policy expires the coverage purchased is compared to a settlement price that reflects the monthly average price of market hogs. If the settlement price is below the insured price, a payment of the difference is made.

By offering WHPIP continuously throughout the year, producers will have the flexibility to match coverage in relation to their own hog operation and anticipated marketings.

 
 
 
 
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Last Reviewed/Revised on September 5, 2014.