Posted Sep. 09, 2019
Saskatchewan producers are entering fall with uncertainty about their livestock operations. Due to the impacts of a dry summer, high feed costs and potential for a lengthy fall/winter feeding season, their breakeven point and risk levels are unclear. The Saskatchewan Crop Insurance Corporation (SCIC) would like to remind producers they can reduce the risk of market uncertainty and protect the value of their cattle with The Western Livestock Price Insurance Program (WLPIP). In the past five years, over $12.7 million has been paid in claims through WLPIP.
Producers can purchase price insurance for their feeder and/or fed cattle year-round. A range of coverage options are available every Tuesday, Wednesday and Thursday. Policies range from 95 to 75 per cent of the calculated forecast price. The WLPIP directly reflects the risk of Western Canadian cattle prices and fills the gap in price risk management.
As of July 31, 2019, the fed price insurance program has paid approximately $600,000 in claims for the 2018-19 year. The feeder price insurance program has paid approximately $200,000 to producers for the 2018-19 year. Many feeder policies will reach their settlement period over the upcoming two months. Producers are encouraged to watch their policies and settlement indexes over this time.
This spring, calf price insurance policies were purchased, insuring approximately 17 per cent of marketable calves in the province. Starting today, settlement indexes will be available to producers who have an existing calf policy. The claim window is the final four weeks of the price insurance policy. Each Monday, settlement indexes for the week are published. If the settlement index is below the producer’s insured coverage the producer can make a claim. The producer may claim a portion or all of their insured weight on any Monday during the claim window. During the last week of the claim window, the producer does not need to take any action as the policy will automatically be calculated on any remaining insured weight. The settlement index for that week will be compared to the producer’s insured coverage. If it is lower, a claim will be made for the difference between the insured coverage and the settlement index. There is no requirement to sell livestock at the time the policy expires. Price insurance for calves will be available for purchase again in February 2020.
Since the fall of 2018, hog producers have faced marketing challenges. WLPIP also offers price insurance to Saskatchewan hog producers. Hog price insurance 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 index. If the settlement index is below the insured coverage, producers are eligible to submit a claim. This program is available for purchase year-round for Saskatchewan hog producers.
For more information about WLPIP, please contact a local SCIC customer service office, call 1-888-935-0000 or visit wlpip.ca.
For more information, contact:
Tessa Krofchek, Marketing and Communication Specialist
Saskatchewan Crop Insurance Corporation
Saskatchewan Crop Insurance Corporation (SCIC) is a provincial Treasury Board Crown Corporation under the portfolio of the Minister of Agriculture. The Corporation provides local service to Saskatchewan producers and continues to focus on its progress to meet the changing needs of the province's farmers and ranchers. SCIC is responsible for administering a suite of business risk management programs: Crop Insurance, AgriStability, Wildlife Damage Compensation Program and the Western Livestock Price Insurance Program. There are 21 SCIC Customer Service Offices throughout Saskatchewan. www.scic.ca