Posted Sep. 07, 2021
Feeder and Fed cattle price insurance is an important piece of a producer's business risk management where producers can purchase price protection on livestock. In 2020, the Feeder and Fed Programs supported producers by paying over $6 million in indemnities. The Program helps producers to reduce the risk of market uncertainty and protect the value of cattle.
When producers purchase a policy, they establish a floor price. In the final four weeks of the policy, if the market falls below the coverage purchased (floor price), Livestock Price Insurance will pay the difference. If the market is above the coverage purchased, producers can benefit by selling livestock into the higher market. Producers can learn more about Livestock Price Insurance by visiting the LPI Buyer Resource Guide.
Producers are invited to register for a Virtual Information Session to learn more about Feeder and Fed Livestock Price Insurance on September 16, 2021 at 7:00 p.m. The session will be hosted by Jodie Griffin, Livestock Price Insurance Coordinator. At the session, producers can learn more about the purpose of Livestock Price Insurance, how to participate and understand premium tables and claim windows. To register for a session, click here.
To purchase a policy, producers can contact their local SCIC office or call toll-free 1-888-935-0000. To access more information, visit 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.