FAQs

Livestock Price Insurance

• What insurance is available for my livestock?
  Glad you asked...

  SCIC is pleased to offer a wide variety of insurance options for livestock producers – including Crop Insurance (forage coverage and weather-based forage programs), AgriStability, and the Livestock Price Insurance Program. Plus, the Wildlife Damage Program is also available to all Saskatchewan producers to provide compensation for wildlife damage to your crop in the field, stacked hay or greenfeed in the yard, or predator attacks on your livestock.

• What is Livestock Price Insurance?
  Glad you asked...

  Livestock Price Insurance (LPI) is a Western Canadian program involving the federal government, Alberta, British Columbia, Manitoba and Saskatchewan. SCIC administers LPI for Saskatchewan producers.

  For protection against unexpected price drops and uncontrollable factors influencing the market, producers can purchase a LPI policy that guarantees a forward market price for your calves, feeders or fed cattle. Even if you are in a claim position, you can still choose to sell or keep your livestock.

• How can Livestock Price Insurance help my operation?
  Glad you asked...

  Livestock Price Insurance (LPI) can help you protect your operation against unexpected price declines. Select from a variety of price insurance coverage options, every Tuesday, Wednesday and Thursday, to find the best fit for your livestock operation. For Saskatchewan producers, there are two regional premium tables to choose from with a wide range of coverage indexes.

  Calf policies are available to purchase annually from February until mid-June, with coverage based on an average 600-pound steer calf. Feeder policies are available year-round for all weaned calves not intended to be finished, with coverage based on an 850-pound steer. Fed policies are also available year-round for cattle on full feed to be finished.

• Why should I buy Livestock Price Insurance?
  Glad you asked...

  Livestock Price Insurance can help protect your operation against market volatility and unexpected price declines. Many factors impact price fluctuations. Currently, there are few risk management programs available to Canadian livestock producers. The Livestock Price Insurance program is flexible and market driven, taking into account three areas of risk specific to Canadian cattle producers: price, currency and basis.

• How can I purchase a LPI policy?
  Glad you asked...

  Take advantage of added convenience and flexibility through Payment on Account and over-the-phone purchasing options. Enrolment is free.

  Please visit any SCIC office or call 1-888-935-0000 to purchase LPI policies and make claims.
  

• How do I use the Livestock Price Insurance Settlement Index?
  Glad you asked...

  Producers who purchased a Livestock Price Insurance policy enter their claim window in the final four weeks of the policy. Settlement values reflect weekly market conditions and are determined using data collected from various auction markets across western Canada. During the first three weeks of the claim window, producers are in a claim position when the settlement index is lower than the insured coverage. The policy holder must manually manage their claim in those first three weeks. If the settlement index for the fourth and final week is lower than the producer’s insured coverage, a claim will automatically calculate using any remaining insured weight on the policy. Settlement indices are published on Mondays.

  To sign up to receive the LPI premiums and settlements indices by email, click here.

• What is a Livestock Price Insurance premium table?
  Glad you asked...

  The Livestock Price Insurance premium tables provide a snapshot into the future. Becoming familiar with the premium tables and how they fluctuate day-to-day will assist when making purchasing decisions. When you purchase coverage to establish a floor price, you can maximize market potential. In the final four weeks of the policy, if the market falls below the coverage you purchased, Livestock Price Insurance will pay the difference. If the market is above the coverage purchased, you can benefit by selling livestock into the higher market.

  For Saskatchewan producers, there are two regional premium tables to choose from with a wide range of coverage indexes.

• How do I know if I'm in a claim position for my livestock insurance?
  Glad you asked...

  When you purchase livestock price insurance, your settle period (claim window) opens during the last four weeks of your policy. You can determine if you're in a claim position by monitoring weekly settlement prices during this period.
  

  Each Monday, the settlement prices for the previous week are published online. If the settlement price is below the insured price of your policy, you're eligible to submit a claim for a portion or all of your insured weight during claim hours.

  If you decide not to make a claim in the first three weeks of your claim window, the system will automatically settle your policy in the fourth and final week using that week's settlement prices. We encourage producers to check their policy and settlement prices before the expiration date.