Alberta cow-calf producers have a new insurance option to guard against price risk.
Alberta Agriculture released details of the Cattle Price Insurance Program for calves (CPIP-Calf) this week.
It is the third cattle insurance program developed and implemented by the department. The other two programs insure price risk for fed and feeder cattle.
“We can now insure the whole production cycle,” CPIP co-ordinator Jennifer Wood said yesterday during a presentation to cattle producers.
The calf program is slightly different from the fed and feeder insurance programs in its length. It is designed for producers to sign up in spring to protect against price drops when they sell those same calves in fall, at an estimated weight of 550 to 650 pounds, said Wood.
CPIP-Calf is available from February to May and policies expire during the fall calf run from September to December.
Producers register for a floor price that they expect to receive for their calves. A payment can be triggered if the price does not reach that point.
However, producers are not limited in their ability to sell at higher prices if the market is higher.
Wood said insurance premiums vary depending on the length of term that producers choose, but are generally $10 to $30 per head.
To use the program, producers must first register with Alberta Agriculture’s Financial Services Corp.
