Sask. ag minister optimistic the Livestock Price Insurance program will eventually go national as more provinces join
UPDATED – March 20, 2024 – 1530 CST – new Livestock Price Insurance graphic added.
Saskatchewan agriculture minister David Marit has said he remains hopeful that the Livestock Price Insurance program will someday be truly national.
LPI is currently available in the prairie provinces and British Columbia.
In the LPI program, a producer pays a premium for forward price coverage.
“If the market price falls below the insured index (coverage price) in the time frame selected, the producer receives a payment,” says the SCIC website.
“When a producer purchases coverage, a floor price within the market is established.”
Marit encouraged livestock producers to sign up for the insurance program.
“Producers who enrol in LPI have no obligation to purchase but are set up to purchase a policy when it is right for their operation.”
He added that other regions of Canada are signing on to Livestock Price Insurance, so it could become a national program.
In early February, the Canadian Cattle Association announced the LPI will likely be available for livestock producers in Atlantic Canada this year.
That leaves Ontario and Quebec as the remaining provinces that aren’t part of the program.
“And Ontario has said they’re ready to come on board. They just have to work out some details with the federal government,” Marit said.
“I’m really hopeful that the Livestock Price Insurance will become a national program within the next few years…. It’s something the province of Saskatchewan led. Alberta came right to the table with us, Manitoba as well.”
Marit spoke during an early March call with media about the Saskatchewan Crop Insurance Corp.’s programs for 2024, at which time SCIC president Jeff Morrow encouraged more livestock producers to use its products.
He said the corporation has made changes to its insurance programs and is taking action to connect with livestock producers.
“We (have) hired more program advisers, and one of their priorities is to get out and talk to livestock producers about the programs and the improvements,” Morrow said.
“(We are) creating more awareness about how the livestock programs can work for producers.”
On March 5, the province and SCIC announced the details of crop insurance programs for the upcoming growing season.
The corporation is now offering coverage for mixed forage, greenfeed and silage and has enhanced the Forage Rainfall Insurance Program.
“Coverage levels (Forage Rainfall Insurance) now better reflect the productive capacity of the insured acres and increased transportation allowance (which recognizes the costs associated with replacing lost feed),” the province said in a release.
“Producers can select from three levels of coverage: low, medium and high, offering flexible risk management and related premium cost options.”
Low uptake of livestock price insurance
From March 2022 to March 2023, a small percentage of Saskatchewan farmers used the Livestock Price Insurance program:
- Around 3.7 percent, or 29,557 calves, were insured.
- Four percent, or 31,720 feeder cattle, were insured.
- More than three percent, or 3,095 fed cattle, were insured.
- No hogs were insured in Saskatchewan.
- Approximately $1,300 was paid to cattle producers through 2022-23.
Source: Saskatchewan Crop Insurance Corp. annual report
As well, SCIC has added 38 weather stations to its network.
Most farmland is now located within 30 kilometres of a station.
“We closed those gaps to give producers more choice for selecting a weather station for their forage rainfall coverage, for example,” Morrow said.
“We want to make sure that our livestock programs are relevant.”
The enhancements to livestock insurance show that the SCIC is listening to producers, said Grant McLellan, CEO of the Saskatchewan Cattlemen’s Association.
“Particularly in the improvements to the forage rainfall program, as well as the acknowledgement of including silage in the insurable groups … there was a clear response (from SCIC),” McLellan said.
“From our organization … we are pleased to see these improvements.”
