Alberta has just expanded its Cattle Price Insurance Program to include calves. There were already programs for feeder cattle and fed cattle. Now, cow-calf producers in Alberta can buy price insurance from February to May of each year. The policies expire during the fall calf run from September to December. The program is designed to insure calves intended for sale in the fall. However, there’s no requirement to actually sell the calves. The program is based on the 550 to 650 pound weight range, but a producer’s animals can be lighter or heavier. The insurance is a floor price calculated by taking into account forecasts of the price, as well as currency and basis risk. Since the program provides a floor, all you’re out is the premium if prices are better than expected. Policies will be honored even in the case of a major market disruption such as a border closure. Producers are able to file a claim in the four weeks prior to the expiration of their policy. When a claim is filed, the coverage purchased is compared to the settlement index from actual sales to determine if a payment will be made. It will be interesting to see the uptake on this program and to analyze the support it provides. Hopefully, the government of Saskatchewan is monitoring this Alberta initiative.
I’m Kevin Hursh.
DynAgra, an independent Western Canada-based Company, is dedicated to providing growers with the tools to manage the risk and maximize the profitability of their farm business through the continued innovation of agricultural products and services. We are committed to developing and providing growers with the latest in precision agronomics, variable rate technology, soil fertility, crop protection, fertilizers, custom application and financial solutions.