Weak cattle prices highlight need for livestock insurance

Weak cattle prices highlight need for livestock insurance

Weak cattle prices highlight need for livestock insurance The WLPIP started operating in Manitoba in spring 2014 as a four-year pilot project, but has been in operation in Alberta since 2009 and has close to 900 Manitoba farmers enrolled so far. The program is designed to help Manitoba’s beef and pork producers insure their herds against unexpected price drops.
 
A report in the Manitoba Cooperator last week said that recent price drops have begun triggering payouts. Under the program, farmers select the price they want to insure, based on weight not number, and when they intend to sell, which sets a floor price. A payout is triggered when the weekly average sale price falls below the insured price
 
According to the news report, strong prices in the past have made farmers sceptical and there is some confusion over the various coverage levels because the premiums are based on volatility. However, those farmers that have signed up are now getting paid out.
 
At the time of the program's launch, Heinz Reimer, president of Manitoba Beef Producers, said price insurance has been a long standing request from beef producers and this new risk management tool will help the industry develop the confidence needed to re-build Manitoba’s beef herd.
 
“Beef producers require strong, bankable risk mitigation tools,” he said. “The combination of this price insurance and the revisions to forage insurance announced this past fall will give beef producers a strong and bankable risk management package, which could fundamentally change beef production in this province.”