Livestock Price Insurance (LPI) provides livestock producers with a range of coverage options to help manage price risk. The program provides an insurable 'floor' price on cattle and hogs for livestock producers in Manitoba.
Livestock Price Insurance is a simple risk management tool that allows producers to purchase price protection on cattle and hogs in the form of an insurance policy.
Producers purchase coverage for one up-front premium on a 'floor price' for livestock. Coverage is based on the market-driven factors, and settlement of policies is based directly on average Western Canadian cattle/hog markets (not on the individual's selling price).
The insured 'floor price' protects against the market being lower than the insured price when the policy expires. If the market goes above the insured price, producers can still sell livestock for that higher price.
There is NO obligation to sell livestock after the LPI policy expires.
Settlement prices are calculated weekly for each cattle program (monthly for the hog program), and are designed to reflect current Western Canadian market prices.
LPI-Calf policies take into account factors that impact the calf price including the futures market, the Canadian dollar, basis and the price of barley.
- Designed for cow-calf producers to purchase policies from February to June
- Policies expire 16 to 36 weeks after purchase of coverage
- Settlement price is based on the average price of a 600 lb calf, derived from current sales data from auction markets and electronic sales data in Saskatchewan and Manitoba
LPI-Feeder policies provide flexible, market driven, simple price insurance to protect against declines in the market.
- Designed to insure feeder cattle using a forecasted market-driven price
- Policies expire 12 to 36 weeks after purchase of coverage
- Settlement is based on the average price of an 850 lb steer, derived from current sales data from auction markets and electronic sales data in Saskatchewan and Manitoba
LPI-Fed policies take the difficulty out of managing all three risks that producers face (price, currency and basis) and combines them into one product.
- Available for fed cattle intended for sale, policies expire 12 to 36 weeks from the date of purchasing coverage
- Settlement price is based on the weekly Alberta Fed Cattle Price Settlement Index established using CanFax data
LPI-Hog policies are designed as a risk management tool for hog producers in Western Canada.
- Designed to provide producers with protection against declining hog prices
- Settlement price of hog insurance policies is based on the USDA spot cash price (converted to Canadian dollars) and adjusted for a Manitoba factor.
How to Apply
To apply for LPI in Manitoba:
- Complete the Application for Identification and Subscription Numbers form (available at www.LPI.ca or a ).
- Return the completed application to a .
- Set up your online account, then visit the www.LPI.ca site to purchase policies and file claims.
Having problems accessing your LPI policy online? No online access?
Contact the LPI Call Centre at 1-844-782-5747 (toll-free).
Premium Coverage Tables, Purchasing Policies, and Payment Options
Premium Coverage Tables
Receive the most current LPI premium coverage tables by fax, email, or by calling the LPI Call Centre at 1-844-782-5747 (toll-free).
LPI policies can be purchased online, or by completing a Request to Purchase paper form (available at www.LPI.ca ).
To submit your Request to Purchase:
After submitting a Request to Purchase, you have up to 15 days to provide payment, by cheque, online banking or telephone banking.
Defer your LPI Premium Payments to Account
Livestock producers now have the option to defer their policy premiums for up to 30 days after the policy expires.
Set up a LPI account, purchase a LPI policy and you can defer your premium payments for the entire length of the policy – and up to 30 days after it expires!
The LPI Frequently Asked Questions answers producers' most common questions.
LPI Policy as Security for the Advance Payment Program
You can use a LPI policy to help secure a cash advance under the Advance Payment Program . Producers can access cash advances of up to $400,000, with interest on the first $100,000 paid by the Federal government.