The Western Livestock Price Insurance Program (WLPIP) provides livestock producers with a range of coverage options to help manage price risk. The program provides an insurable 'floor' price on cattle and hogs for livestock producers in Manitoba.
You can now purchase WLPIP-Calf policies for settlement in Fall 2020. The period to purchase WLPIP-Calf policies runs from February 4 - May 28, 2020.
Livestock Price Insurance is a simple risk management tool that allows producers to purchase price protection on cattle and hogs in the form of an insurance policy.
Producers purchase coverage for one up-front premium on a 'floor price' for livestock. Coverage is based on the market-driven factors, and settlement of policies is based directly on average Western Canadian cattle/hog markets (not on the individual's selling price).
The insured 'floor price' protects against the market being lower than the insured price when the policy expires. If the market goes above the insured price, producers can still sell livestock for that higher price.
There is NO obligation to sell livestock after the WLPIP policy expires.
Settlement prices are calculated weekly for each cattle program (monthly for the hog program), and are designed to reflect current Western Canadian market prices.
WCPIP-Calf takes into account factors that impact the calf price including the futures market, the Canadian dollar, basis and the price of barley.
Designed for cow-calf producers to purchase policies from February to May
Policies expire 16 to 36 weeks after purchase of coverage, during the fall calf run from September to December
Settlement price is based on the average price of a 600 lb calf, derived from current sales data from auction markets and electronic sales data in Saskatchewan and Manitoba
WCPIP-Feeder provides flexible, market driven, simple price insurance to protect against declines in the market.
Designed to insure feeder cattle using a forecasted market-driven price
Policies expire 12 to 36 weeks after purchase of coverage
Settlement is based on the average price of an 850 lb steer, derived from current sales data from auction markets and electronic sales data in Saskatchewan and Manitoba
WCPIP-Fed takes the difficulty out of managing all three risks that producers face (price, currency and basis) and combines them into one product.
Available for fed cattle intended for sale, policies expire 12 to 36 weeks from the date of purchasing coverage
Settlement price is based on the weekly Alberta Fed Cattle Price Settlement Index established using CanFax data
WLPIP Policy as Security for the Advance Payment Program
You can use a WLPIP policy to help secure a cash advance under the Advance Payment Program. Producers can access cash advances of up to $400,000, with interest on the first $100,000 paid by the Federal government.