From ABP’s Government Desk

The cattle market is strong right now, and that’s a relief to a lot of cattle producers. But why don’t we have new producers flocking to the industry?

A major barrier is the lack of effective agri-insurance. Cattle producers have managed through drought in the last five years, and that’s something current insurance options don’t adequately cover.

Cattle producers have experienced two AgriRecoveries in the last three years, signifying extreme opportunities for improvement. A quick look across the fence at the cropping sector shows the industry impact of responsive insurance programming.

Livestock Price Insurance (LPI) and Moisture Deficiency Insurance (MDI) provide support to producers in certain scenarios. LPI provides disaster insurance in case of a price crash, and MDI now includes more parameters than just rainfall, such as heat.

I would like to clearly state that MDI did pay out very well in 2023 and the improved program has shown
itself as more responsive for producers. Big thank you to Agriculture Financial Services Corporation (AFSC) for listening to producers and improving the program.

Both MDI and LPI meet their program design; however, the beef industry is complex. It needs an agri-insurance suite that supports a variety of management styles and insurance scenarios. With the right improvements, AgriStability, or a similar margin insurance program, could contribute to a more equitable agricultural industry.

Alberta Beef Producers (ABP) is working with AFSC to enhance insurance offerings. Margin insurance programs, like AgriStability, continue to be the focus, as they give protection for production, price and inputs, thus giving the most stability to producers.

The beef industry isn’t looking for a subsidy advantage; we are just looking for programming that provides similar levels of support to other agricultural sectors. It is not likely the beef sector will get another AgriRecovery in the near future so we need further improvements.

Get involved with changing the business risk management (BRM) program by contacting AFSC.

This article was first published in Volume 3 Issue 4 of ABP Magazine (December 2023). Watch for more digital content from the magazine on ABP Daily.