Livestock Insurance Programs On The Way

The federal and provincial agriculture ministers say long-awaited livestock insurance programs will be rolled out under Growing Forward 2.

The new five year agricultural policy framework that started on April 1st features an increased emphasis on insurance-based business risk management programs.

"There are some great discussions moving forward on livestock insurance. I think we'll see some pilot projects move forward, other than just Alberta, in the latest go-around," says federal Ag Minister Gerry Ritz. "I would hate to see it take the full five years to come into play, so we're putting all the pressures we can on to make sure we have good discussions based on sound-science and what economies really need to insure themselves."

Provincial Ag Minister Ron Kostyshyn says an insurance program for beef producers could be in place for next year.

"2014 should be the start of the price protection in the beef industry. We're also talking about potentially having hog mortality insurance for the hog industry," he says. "It's an ongoing consultation about insurance-based programs."

Ritz notes the programs need to be designed so they don't upset Canada's international trading partners. He says Alberta's cattle price insurance program is a model that could be expanded to other provinces.

"We need to come to grips with how we do it. Everything like this has to be done with a lens to countervail potential," he says. "If it's a true insurance-based program like in Alberta, where producers are paying the premium and the governments are helping out with administration and the initial backstop until they get the economies-of-scale, I certainly see that as a workable model."