Can I still purchase calf price insurance? What program improvements is CCA advocating for?
The deadline to purchase coverage under the Western Livestock Price Insurance Program (WLPIP) for calves has been extended to June 18, 2020.
The industry has been lobbying for governments to cost share premiums on WLPIP in an effort to bring them down to pre-COVID levels. While this unfortunately was not included in the first round of federal funding, the Saskatchewan Government announced an investment of $5 million to partially offset higher premium costs under the WLPIP for producers in the province. The Saskatchewan Government will provide 40 per cent of the increased premium costs, dating back to February 25, 2020.
You can watch the CCA’s Virtual News Roundup featuring Saskatchewan Cattlemen’s Association CEO, Ryder Lee, for more details on the announcement made on May 14, 2020. Saskatchewan producers can contact their local Saskatchewan Crop Insurance Corporation office for more information or visit their website by clicking here.
The CCA will continue to advocate for improvements to the WLPIP, as well as the need to expand the Livestock Price Insurance Program into Eastern Canada.
Will revenue from WLPIP payments be counted as income for AgriStability calculations?
Effective for the 2020 program year, indemnities received from private insurance, such as the Western Livestock Price Insurance Program (WLPIP), will not be considered allowable income in the calculation of the program year margin. Premiums will still be considered allowable expenses in the program year, as well as both premiums and indemnities will be treated as allowable in the reference period.
Is AgriStability based on a whole-farm format?
Yes. AgriStability is a whole-farm risk management tool that is designed to protect your farm income based on all of your commodities.
Where do I find more information about funding available to hire young people on my farm?
On May 26, 2020, the Government of Canada (GoC) announced an investment of up to $9.2 million to enhance the Youth Employment and Skills Program (YESP) and fund up to 700 new positions for youth in the agriculture industry between the ages of 15 and 30.
The YESP will provide agriculture employers, including beef cattle producers, up to 50 per cent of the cost of hiring a Canadian youth up to $14,000.
What effects have we seen on the cattle markets due to COVID-19?
COVID-19 has had a significant impact on the North American cattle/beef supply chain, and the cattle markets. Cattle prices dropped significantly as packing plants were forced to scale back production or temporarily close as a result of the labour force being impacted by COVID-19. Producers were unable to sell cattle and prices dropped dramatically, hitting some of the lowest prices in over eight years.
Packing plants have made significant investment in their plants for the safety of their work force, processing rates have picked up and prices have improved as well. With that being said, the backlog of cattle as a result of COVID-19 will weigh on the markets for much of 2020. These market impacts also impacted other cattle in the supply chain, resulting in lower feeder and cull-cow prices. Cull cows started to be exported in larger numbers to the U.S. which acted as a relief valve for that market.
In addition to the supply issues, medium- and longer-term demand uncertainty remains, as the North American economy has taken a hit. That said, international demand continues to be a supportive market factor.
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