Cattle producers know all too well how factors beyond their control can wreak havoc with the markets and cause financial hardship. The value of the Canadian dollar, Mother Nature, international trade and food safety issues have had a great impact on markets and producers have been left to deal with these challenges on their own. With the Western Livestock Price Insurance Program (WLPIP), producers can protect themselves against the negative impact of these events.
The effectiveness of WLPIP has been demonstrated recently. In the last three years over $12 million has been paid to Saskatchewan producers who purchased price insurance, compensating for the downturn and volatility that was experienced in the livestock market. Producers also responded this past spring as over 22 per cent of the marketable calf crop was insured, the highest amount since the program started in 2014.
As a result of the introduction of WLPIP, producers have a way to manage price risk and remove some of the uncertainty in the market place.
Price insurance is offered year-round for feeder cattle, fed cattle and hogs. Calf price insurance can be purchased between February and the end of May each year, as this coverage is for spring born calves which are normally marketed in the fall.
Producers who purchased calf price insurance in the spring of 2017 are reminded that settlement prices for their claim window will be occurring throughout the fall.
Each producer鈥檚 claim window will be different depending on the length of the policy. It is important producers review their policies to determine when their claim window begins. Producers can then monitor the settlement prices during their claim window and decide whether to make a claim.
For more information contact any of the 21 Crop Insurance offices across the province, call 1-888-935-0000 or visit saskcropinsurance.com.
