Manitoba Producers to Benefit from New Livestock Price Insurance Program

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 program.

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 Corporation.

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.

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