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Calf Price Insurance Deadline

31 May 2012

CANADA - Today, Thursday, May 31st, is the deadline for cattle producers to purchase price insurance on the calves they will be marketing this fall.

The policies purchased at this time will expire during the fall calf run from September to December of this year. Calf price insurance is one component of Alberta’s Cattle Price Insurance Programme (CPIP), a voluntary and easy to use risk management tool that helps cattle producers manage price risk. Under CPIP, producers also are able to purchase price insurance on feeder cattle and fed cattle. This innovative programme is administered by Agriculture Financial Services Corporation (AFSC) and was developed from a project done by Gibson Capital with support from Alberta Beef Producers (ABP).

The CPIP-Calf programme is designed for producers to insure calves using a forecasted market-driven price. By matching policy length to the expected time of sale of the calves, producers will have a known “floor” price on the calves without limiting their ability to sell them at a higher price.

For a small premium, producers can protect themselves from a huge drop in prices that might occur in the event of major market disruptions such as a border closure. For a larger premium, producers can insure their calf prices at a level closer to the price they would need to meet their financial commitments or business plans.

As provincial and federal governments try to deal with budget deficits, they are looking closely at setting priorities for investments in the agriculture industry. We want to insure that governments maintain or increase their investments in agriculture, with a primary focus on research, export market access, and marketing programs. In setting priorities, governments also will be looking for producers to take a more active role in business risk management through programs such as the CPIP, instead of relying on income support programmes. ABP encourages all cattle producers to learn about CPIP and consider whether this programme could help them meet their risk management needs.

Producers can complete an application and purchase price insurance at an AFSC District Office or online. More information is also available by contacting AFSC through a toll-free number at 1-877-899-2372.

TheCattleSite News Desk



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