Manage Your Risk with Livestock Price Insurance

With the 2021 spring calving season underway, the Saskatchewan Crop Insurance Corporation (SCIC) would like to remind producers they can protect their operation against market volatility and unexpected price declines with Livestock Price Insurance (LPI).

Posted Apr. 21, 2021

Many market-driven factors impact price fluctuations. Currently, there are few risk management programs available to Canadian livestock producers. The Livestock Price Insurance Program is market driven, taking into account three areas of risk specific to Canadian cattle producers: price, currency and basis risk.

Producers can utilize the Livestock Price Insurance Premium Tables to guide their purchasing decisions. The premium tables provide a snapshot into the future. When producers purchase coverage to establish a floor price, they can maximize market potential. In the final four weeks of the policy, if the market falls below the coverage purchased, Livestock Price Insurance will pay the difference. If the market is above the coverage purchased, they can benefit by selling livestock into the higher market. To access more information, reference the LPI Buyer's Resource Guide.

To purchase a policy or register a claim, producers can contact their local SCIC office or call toll-free 1-888-935-0000.

 

For more information, contact:

Tessa Krofchek, Marketing and Communications Specialist
Saskatchewan Crop Insurance Corporation
Phone: 1-639-398-2268
Email: tessa.krofchek@scic.ca

 

About Livestock Price Insurance

Livestock Price Insurance (LPI) is a risk management program available in British Columbia, Alberta, Saskatchewan and Manitoba. The Program provides producers with coverage against market volatility, including an unexpected drop in prices over a defined period of time. Producers can purchase price protection on calves, feeder and fed cattle and hogs, in the form of an insurance policy. Policies are based on a forward market price. If, at the end of the policy the insured price is higher than the market price, the producer will receive a payment for the difference. The program is continuing under the federal-provincial policy framework agreement: the Canadian Agricultural Partnership.