Western Livestock Price Insurance

Western Livestock Price Insurance Program

Overview

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The Western Livestock Price Insurance Program (WLPIP) 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.

First developed as a producer-driven initiative under the guidance of Alberta Beef Producers, WLPIP has since expanded to all of Western Canada. As part of the Growing Forward 2 initiative, the WLPIP is now being offered to livestock producers in Manitoba.

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Important WLPIP Information

WLPIP Web Help Guide

The WLPIP Web Help Guide PDF shows you the basics of WLPIP, how to access the WLPIP site, how to purchase policies, and how to file a claim.


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WLPIP Policy as Security for the Advance Payment Program

You can use a WLPIP 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 them at 1-866-869-4008.

About WLPIP

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WLPIP is a complete risk management program that accounts for the risks associated with future livestock market prices, fluctuations in the Canadian dollar, the basis that reflects the impact of trade issues, cost of feed, and transportation. Producers purchase coverage for one up-front premium, and while coverage is based on the market-driven factors, settlement of policies is based directly on average Western Canadian cattle/hog markets (not on the individual's selling price).

Selecting an insured price provides a 'floor' price, which acts as protection against the market being lower than the insured price when the policy expires. If the market goes above the insured price, producers can still take advantage of the upside and sell livestock for that higher price. In either case, there is no obligation to sell livestock when the policy expires.

Settlement prices are calculated weekly for each cattle program and monthly for the hog program, and are designed to reflect current Western Canadian market prices, which ensures the program is responding to market conditions that producers are actually facing in their home market.

WLPIP Insurance Policies are Available for Purchase
WLPIP Call Centre: 1-844-782-5747 (toll-free)
www.WLPIP.ca
Manitoba Contract and Forms

For more information, contact your local MASC Insurance Office.

How WLPIP Works

  1. A producer purchases insurance based on the expected future sale weight of the livestock.
  2. The producer chooses the insurance policy length to match the time period when they expect to sell.
  3. The producer chooses a coverage level and pays the associated premium by credit card through a secure online portal. A producer may also pay by cheque, online banking or telephone banking. For more details, see the 'Notification, Purchase and Payment Options' section (below).
  4. The producer now has a protected floor price.
  5. In the Calf, Feeder and Fed programs, if the settlement price is below the selected coverage during the last four weeks of a policy, the producer can make a claim.
    • In the Hog program, if the settlement price is below the selected coverage at the expiration of a policy, the producer will receive an indemnity automatically.
  6. There is no obligation to sell livestock at the time the policy expires.

WLPIP Programs

WLPIP Programs

Western Cattle Price Insurance Program (WCPIP)

WLPIP for cattle (WCPIP) is designed as a simple risk management tool that beef producers in Western Canada can use to help manage some of the risks associated with owning cattle. Reflecting the price in their local market, the program helps reduce a producer's exposure to price, basis and currency risk.

Three WCPIP programs have been developed to reflect the risk of feeding cattle at various stages in the production cycle: WCPIP-Calf, WCPIP-Feeder and WCPIP-Fed

WCPIP-Calf

takes into account factors that impact the calf price including the futures market, the Canadian dollar, basis and the price of barley.

  • Offered each spring
  • Designed for cow-calf producers to purchase policies from February to May
  • Policies expire 16 to 36 weeks after purchase of coverage, during the fall calf run from September to December
  • Settlement price is based on the average price of a 600 lb calf, derived from current sales data from auction markets in Saskatchewan and Manitoba
The period for purchasing WCPIP-Calf policies for settlement in Fall 2017 expired on May 31, 2017.

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WCPIP-Feeder

provides flexible, market driven, simple price insurance to protect against declines in the market.

  • Offered year-round
  • 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 in Saskatchewan and Manitoba

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WCPIP-Fed

takes the difficulty out of managing all three risks that producers face (price, currency and basis) and combines them into one product.

  • Offered year-round
  • 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

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Western Hog Price Insurance Program (WHPIP)

is designed as a risk management tool for hog producers in Western Canada.

  • Offered year-round
  • Designed to provide producers with protection against declining hog prices
  • Provides an alternative to futures and options. WHPIP allows producers to take advantage of any market upside when prices increase above a locked-in price
  • Settlement price of hog insurance policies is based on the USDA spot cash price (converted to Canadian dollars) and adjusted for a Manitoba factor.

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How to Apply

How to Apply

How to Apply

To access WLPIP in Manitoba, follow the steps below:

  1. Contact your local MASC Insurance office to complete the Application for Identification and Subscription Numbers. This form is also available online at www.WLPIP.ca/ManitobaForms.
    • Applicants must be 18 years of age or older, and file or intend to file farm income for tax purposes in the Province of Manitoba.
  2. You will receive an Activation Key by email once your eligibility is confirmed. With your Activation Key, logon to mywlpip.wlpip.ca to create a unique username and password. Once your online account is set up, use mywlpip.wlpip.ca to purchase policies, monitor premiums and coverage levels, pay your premiums, and file claims. You must log-in within 30 days to activate your account.
Having problems accessing your WLPIP policy online?
Contact the WLPIP Call Centre at 1-844-782-5747.

Notification, Purchase, and Payment Options

The most current WLPIP premium coverage tables can be provided by fax, email, or by calling the WLPIP Contact Centre at 1-844-782-5747.

WLPIP policies can be purchased online at mywlpip.wlpip.ca , or by filling out a 'Request to Purchase' form (provided at mywlpip.wlpip.ca ). Once filled out, a 'Request to Purchase' form can be submitted by email (with scanned attachment of the Request to Purchase form) or by fax or photograph.

If a 'Request to Purchase' form is submitted via fax or email, a notice of confirmation is sent by the same method, and an additional confirmation is mailed the following day.

If a producer has submitted a 'Request to Purchase' form, the producer has up to 15 days to provide payment. Currently a producer can pay by cheque, online banking, or telephone banking.

WLPIP Events in Manitoba


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Host Your Own WLPIP Event

MASC's Livestock Price Insurance Coordinator is available (at no cost) to speak at producer meetings, business events and more. Presentations can accommodate producer club meetings, breakfast meetings, or one-on-one farm visits where the program is explained at your kitchen table or the shop bench.

To arrange a presentation, call the MASC Livestock Price Insurance Coordinator at (204) 239-3084.

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