Livestock producers will have a new option to help cash flow program participation
By Kate Ayers
Producers who use the Western Livestock Price Insurance Program (WLPIP) now have the option for payment on account.
This option permits farmers to carry WLPIP premium payments until 30 days after their policy expires, a Manitoba government release said on Wednesday.
The risk management tool allows producers to take part in the program without having to access operating capital for payment upon purchase, the release said. This deferred payment is subject to interest.
“WLPIP is a good example of governments and industry working together to offer an innovative risk management tool that responds to the unique needs of the livestock sector, ensuring our hard-working farmers can continue to grow the economy and create good, middle-class jobs,” Lawrence MacAulay, minister of agriculture and agri-food, said in a Government of Saskatchewan release on Wednesday.
“Livestock insurance is a good complement to existing business risk management programs, offering additional protection against market volatility.”
The WLPIP program is designed to protect cattle and hog producers against unexpected drops in market prices over a certain period. It is available to producers in British Columbia, Alberta, Saskatchewan and Manitoba.
Producers buy insurance based on the market-driven ensured price and a producer-selected coverage level, the Manitoba release said. Indeed, provincial financial organizations, such as the Manitoba Agricultural Services Corporation and the Saskatchewan Crop Insurance Corporation, derive settlement prices from the Western Canadian livestock markets.
Producers can purchase price insurance year-round for their feeder cattle, finished cattle or hogs, the release said. Calf policies will be available in February.
More information on the program can be found here.