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Insurance Programme Benefits Alberta Producers

by 5m Editor
28 July 2011, at 12:37pm

ALBERTA, CANADA - A new risk management tool will help Alberta hog producers weather volatile market prices as they prepare their hogs for market.

The Hog Price Insurance Programme (HPIP) will help provide hog producers with protection against an unpredicted decline in Alberta hog prices over a defined time period. HPIP is delivered by Alberta’s Agriculture Financial Services Corporation (AFSC) and is part of the larger suite of Livestock Price Insurance Programmes (LPIP) that includes three programmes for cattle.

"The Hog Price Insurance Programme is another example of government’s support for producers who have been impacted by volatile market prices. We have seen good success with the Cattle Price Insurance Programmes and wanted to bring those benefits to hog producers as well," said Jack Hayden, Minister of Agriculture and Rural Development. "This programme reflects the needs of our hog producers and provides them with a simple and bankable way to manage risk."

Creating a customized programme to reflect the unique requirements of the hog market was done in close consultation with industry, including Alberta Pork and the Western Hog Exchange. Also instrumental in the development of HPIP was the Alberta Livestock and Meat Agency (ALMA).

"We have worked closely with the hog industry on developing this programme. As such, HPIP is flexible and reflective of the market and will deliver on what producers in Alberta require," explains Mr Hayden. "In purchasing an HPIP policy, the producer has a known ‘floor’ price for those hogs without limiting the ability to sell them at a higher price, which is important in creating a sustainable industry."

HPIP is voluntary and available to purchase year round, with insurance settlement reflecting the monthly average Alberta hog price. HPIP is now available to purchase. For more information or to enroll call AFSC at 1-877-899-AFSC (2372) or visit www.AFSC.ca