The government of Alberta is now offering beef producers a new form of risk management with the introduction of the Cattle Price Insurance Program (CPIP) for feedlot operators, reports a release on the province’s website.
CPIP is the first of its kind in Canada and will help Alberta’s feedlot operators manage price risk on fed cattle through price insurance and basis insurance available through Alberta’s Agriculture Financial Services Corporation.
Helping producers manage volatility
George Groeneveld, Minister of Agriculture and Rural Development, said: “Our government understands the risk and price volatility the beef industry faces and identified the need for cattle price insurance in the Alberta Livestock and Meat Strategy.”
He went on to say that the program is a “made-in-Alberta solution that reflects industry needs and allows producers to customize coverage levels and policy length to suit their operation.”
The coverage sets a guaranteed price for fed cattle intended for sale 12 to 36 weeks from the policy purchase date. Program coverage levels and premiums react to market factors on a daily basis, with policies settled against an Alberta average index.
The province says CPIP reflects industry needs and effectively fills an area of risk management that did not previously exist.
The program was developed in consultation with industry, including the Alberta Beef Producers and the Feeder Associations of Alberta who were key in its development.