Protecting Producers Against Risks
CANADA - Alberta beef producers have a new tool to help handle volatile market prices and uncertainty around the Canadian dollar as they prepare their cattle for market.
9 November 2010
2 minute read
Cattle Price Insurance Program (CPIP)-Feeder is the second insurance programme to become available within the CPIP suite of programmes and provides beef producers with protection against price risk, currency risk and basis risk.
“The introduction of this program for feeder cattle gives beef producers a made-in-Alberta solution to help manage those risks,” said Jack Hayden, Minister of Agriculture and Rural Development. “It reflects the needs of industry and gives beef producers a flexible programme that is much easier to use than traditional risk management tools.”
CPIP-Feeder is designed to complement the existing programme designed for finished cattle. Creating customised programmes to reflect different market requirements was done in close consultation with the Feeder Associations of Alberta and Alberta Beef Producers. The Alberta Livestock and Meat Agency (ALMA) was also instrumental in the development of CPIP. All CPIP programmes are delivered by Alberta’s Agriculture Financial Services Corporation (AFSC).
“We know any programme we develop has to be flexible and easy to understand. This program delivers on what producers in Alberta need,” added Mr Hayden. “In purchasing a policy, the producer has a known ‘floor’ price for those cattle without limiting the ability to sell them at a higher price.”
CPIP is voluntary and market-driven, with settlement data gathered from auction markets across the province. CPIP-Feeder is now available to purchase. For more information or to enroll call AFSC at 1-877-899-AFSC (2372) or visit www.AFSC.ca.
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