Current affairs in Winnipeg, things people are talking about. Hot button topics.
Thursday, February 13, 2014
Agriculture, Food and Rural Development Minister Ron
Kostyshyn was joined by agricultural leaders to announce the province’s
participation in the Western Livestock Price Insurance Program, a new tool to
help producers better manage risk and withstand market volatility. From left to
right: Doug Chorney, president of Keystone Agricultural Producers; Heinz Reimer,
president of Manitoba Beef Producers and Jonathan Bouw, co-owner of Edie Creek
Angus Farms, the site of the Feb. 13 announcement
February 13, 2014
PRODUCERS TO BENEFIT FROM NEW LIVESTOCK PRICE INSURANCE
Manitoba’s livestock producers will have a new tool to manage risk and
withstand market volatility. Federal Agriculture Minister Gerry Ritz and
Manitoba Agriculture, Food and Rural Development Minister Ron Kostyshyn
announced today that the province will participate in the Western Livestock
Price Insurance Program (WLPIP).
“With this new program, Manitoba’s beef and pork producers can insure their
herds against unexpected price drops,” said Minister Ritz. “Our government will
continue to work closely with the provinces and industry to make sure producers
have access to the bankable and predictable tools they need to grow their
operations and our overall economy.”
Details of the new pilot program are being finalized and will be available
for cattle and hog producers beginning this spring. It is a voluntary and
user-friendly program which will help producers manage risks related to market
volatility and unexpected price declines.
“This insurance program is new territory for the Manitoba livestock sector
and something producers have been asking the province to pursue,” said Minister
Kostyshyn. “We are pleased to partner with the other western provinces and the
federal government to make it a reality. Through WLPIP, producers will now have
a new way to manage price risk.”
The WLPIP will operate as a four-year pilot project that includes an
evaluation to assess its effectiveness as a risk management tool for livestock
producers. The program is intended to be actuarially sound, with premiums fully
funded by producers.
"Price insurance has been a long standing request from beef producers and
this new risk management tool will help the industry develop the confidence we
need to re-build Manitoba’s beef herd,” said Heinz Reimer, president of Manitoba
Beef Producers. “Beef producers require strong, bankable risk mitigation
tools. The combination of this price insurance and the revisions to forage
insurance announced this past fall will give beef producers a strong and
bankable risk management package, which could fundamentally change beef
production in this province.”
Alberta’s Agriculture Financial Services Corporation is providing program
administration across Western Canada, with the Manitoba Agricultural Services
Corporation acting as the insurer for Manitoba producers who participate in the
The federal and provincial governments will cover the administration and
delivery costs through Growing Forward 2’s AgriRisk Initiatives – Administrative
Capacity Building. The federal government will also provide deficit financing
for the pilot.
More detailed information about the WLPIP will be available in March and
shared with producers online at www.wlpip.ca or at 1-877-899-2372 (toll-free).
Information will also be available at the Manitoba Agricultural Services
Other GF2 Investments
In Manitoba, the federal and provincial governments are investing $176
million under Growing Forward 2, a five-year, federal-provincial-territorial
policy framework to advance the agriculture industry, helping producers and
processors become more innovative and competitive in world markets.