Payment On Account Now Available for Saskatchewan Producers Through WLPIP
Today, federal Agriculture and Agri-Food Minister Lawrence MacAulay and Saskatchewan Agriculture Minister David Marit announced Payment on Account will now be available to livestock producers in Saskatchewan purchasing a policy through the Western Livestock Price Insurance Program (WLPIP).
WLPIP provides producers with protection against an unexpected drop in market prices over a defined period of time. This risk management option is delivered in conjunction with the Government of Canada and the four western Canadian provinces of British Columbia, Alberta, Saskatchewan and Manitoba.
“WLPIP is a good example of governments and industry working together to offer an innovative risk management tool that responds to the unique needs of the livestock sector, ensuring our hard-working farmers can continue to grow the economy and create good, middle class jobs,” said MacAulay. “Livestock price insurance is a good complement to existing business risk management programs, offering additional protection against market volatility.”
“Saskatchewan livestock producers need the flexibility to make the best decisions for their cattle or hog operations,” Marit said. “Saskatchewan producers can now take advantage of this needed option of deferring a payment while continuing to participate in the price insurance program. Producers should consider this valuable risk management tool for their operation.”
The Saskatchewan Crop Insurance Corporation (SCIC) introduced WLPIP to Saskatchewan producers in April 2014. WLPIP gives producers the opportunity to purchase price protection on cattle and hogs, in the form of an insurance policy.
When purchasing a policy through WLPIP, Saskatchewan livestock producers can pay their premium up-front, online or in person by cheque at their local SCIC office. With Payment on Account, producers now have until the expiration of their policy to complete their premium payment, subject to interest terms of the purchase.
SCIC continues to work with producers and industry to ensure the program meets the needs of producers. Today’s initiative was developed in consultation with producer groups representing the livestock industry. Saskatchewan producers now have the same payment options as Alberta and Manitoba.
“I am pleased to see the update to allow for payment on account for Western Livestock Price Insurance Program. This new flexibility keeps Saskatchewan cattle producers on an even footing with our neighbours to the west,” Saskatchewan Cattlemen’s Association Chairman Rick Toney said. “What many producers may not know is the good working relationship the Saskatchewan Cattlemen’s Association has with Saskatchewan Crop Insurance who administer livestock price insurance. Pay on account is another check mark made on a long list of improvements that have come from Saskatchewan Cattlemen’s Association and Crop Insurance working together to keep improving programs.”
“It bridges the gap between Saskatchewan and Alberta producers on payment options,” Saskatchewan Cattle Feeders Association President Jordan Kowal said. “It gives producers more payment options that fit the needs of their operations.”
The 2017-18 year saw the largest participation in the program, to date. As of March 31, 2018, a total of 2,959 producers had signed up to participate in WLPIP. Twenty-two per cent or approximately 176,000 calves were insured during the spring of 2017; two and a half per cent or approximately 19,690 of the province’s feeder cattle were insured; and four and half per cent or approximately 4,463 fed cattle were insured.
Approximately $405,000 was paid out to cow/calf producers in the fall of 2017. WLPIP has experienced strong interest in the program to date. With the implementation of Payment of Account, SCIC expects this interest to continue into the 2018-19 program year.
Producers can purchase price insurance year-round for their feeder cattle, finished cattle or hogs. Coverage is available for cattle intended for sale 12 to 36 weeks from the day of policy purchase.
Policies are available for purchase every Tuesday, Wednesday and Thursday with coverage levels ranging from 95 to 75 per cent of the calculated forecast price. Price insurance for calves will be available for purchase again in February 2019.
For more information, contact SCIC at 1-888-935-0000 or visit www.wlpip.ca.
SCIC is a provincial Treasury Board Crown Corporation under the portfolio of the Minister of Agriculture. The Corporation provides local service to Saskatchewan producers and continues to focus on its progress to meet the changing needs of the province's farmers and ranchers. SCIC is responsible for administering a suite of business risk management programs: Crop Insurance, AgriStability, Wildlife Damage Compensation Program and the Western Livestock Price Insurance Program. There are 21 SCIC Customer Service Offices throughout Saskatchewan. Please visit www.saskcropinsurance.com or @skcropinsurance.