January 28, 2014

The Canadian government and the western provinces launched a four-year Western Livestock Price Insurance Programme on Friday (Jan 24) to help cattle and hog producers in western provinces manage price risks.

Agriculture officials say it will allow livestock producers to ensure a price for their animals by buying insurance. The idea is to protect producers against unexpected price drops.

AdvertisementAlberta introduced price insurance in 2009 for cattle and hog producers and this plan expands the concept to British Columbia and Saskatchewan.

"By providing livestock price insurance across Western Canada, we will be able to level the playing field, ensuring all producers have access to these important risk management tools," said Saskatchewan Agriculture Minister Lyle Stewart.

Officials in Alberta say about 900,000 cattle – just under one-third of the herd in that province - are insured under the programme and less than 10,000 hogs are insured.

The Canadian Cattlemen's Association welcomed the new programme, which was launched at the Canadian Bull Congress in Camrose, Alberta. The association says the programme can help with some of the most unpredictable aspects of managing cattle farms.