Livestock Price Insurance
Livestock Price Insurance (LPI) is a business risk-management program where producers purchase price protection on livestock in the form of an insurance policy. LPI is available in British Columbia, Alberta, Saskatchewan, and Manitoba and provides producers with protection against unexpected drops in prices over a defined period of time.
Offered by Ministry of Agriculture and Food
Amount
Price insurance: producers pay a premium for forward price coverage at a coverage level of 75%-95% (Calf, Fed) or up to 95% (Feeder) of the expected forward price; if the market falls below the insured index (coverage price) in the final four weeks of the policy, LPI will pay the difference (premiums are fully funded by producers)
Quick eligibility check
Who can apply
Program Participation Participation is voluntary and available to cattle producers in western Canada.
General Eligibility Requirements
In order to be eligible for LPI, producers must meet the following criteria:
- File farm income taxes in British Columbia, Alberta, Saskatchewan, or Manitoba; or if one of these
provinces is the province for which the greatest amount of income would be reportable under the Income Tax Act (Canada) for Eligible Livestock.
- Be the owner of the livestock.
- Be the age of majority.
Product Specific Eligibility Requirements (In addition to general eligibility requirements.) LPI – Calf Be able to provide proof of calf ownership for 60 continuous days throughout the policy.
LPI – Feeder Be able to provide proof of cattle ownership for 60 continuous days throughout the policy.
6 LIVESTOCK PRICE INSURANCE
LPI – Fed Producers need to finish the fed cattle in western Canada for the final four-week period immediately prior to the claim window.
LPI – Fed Cattle Price Reporting Participation is voluntary and available to all beef producers finishing cattle in British Columbia, Alberta, Saskatchewan or Manitoba. Producers do not need to be current LPI program subscribers.
About the funding
Producers pay a premium to receive forward price coverage. If the market price falls below the insured index (coverage price) in the time frame selected, the producer receives a payment. When a producer purchases coverage, a floor price within the market is established. In the final four weeks of the policy, if the market falls below the insured index (coverage price) purchases, LPI will pay the difference. If the market is above the insured index (coverage price) purchased, producers can benefit by selling livestock into the higher regional market.
Cattle - Price Insurance Features Calf Feeder Fed 1000+ Eligible Estimated 550 – 650 lbs Intended for slaughter 750-950 lbs Weight (un-weaned calves) and expected to Grade A or better Eligible Animal Types Beef heifers and steers Beef heifers and steers Beef heifers and steers Policy Lengths 16 to 36 weeks 12 to 36 weeks 12 to 36 weeks Coverage Level Range (of expected forward price 75%-95% Up to 95% 75%-95% for each policy length) Minimum Weight No weight minimums No weight minimums No weight minimums
Cost to Participate Premiums of the LPI program are fully funded by producers.
