Livestock Price Insurance

Overview

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.

LPI-Calf

Purchase LPI-Calf policies for settlement in Fall 2021. The period to purchase LPI-Calf policies runs from February 2 - June 10, 2021.

LPI-Calf Program Updates:

Extension of Purchase and Settlement Hours: Livestock producers can now purchase LPI-Calf policies from 3 p.m. to 12 a.m. on Tuesday, Wednesday, and Thursday. Settlement hours on Monday are now offered from 3 p.m. to 12 a.m.
Extension of Sales and Settlement Window: Deadlines to purchase LPI-Calf policies have been permanently extended into June, with settlement dates now available in January and February. For 2021, producers can purchase LPI-Calf policies until June 10, 2021, with expiry dates available until February 21, 2022.

About LPI

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 Programs

Calf

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

Feeder

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

Fed

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

Hogs

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.

Application

How to Apply

To apply for LPI in Manitoba:

Complete the Application for Identification and Subscription Numbers form (available at www.LPI.ca or an ARD and MASC Service Centre).
Return the completed application to an ARD and MASC Service Centre.
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).

Purchasing Policies

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:

Email, fax or visit an ARD and MASC Service Centre.
Email ( info@lpi.ca ) or fax ( 1-844-782-8339 ) the LPI Contact Centre.

Payment Options

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!

More Information

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.

For more information, please visit Manitoba Livestock Cash Advance or call 1-866-869-4008.