Sources -Government Of Alberta
Edmonton… 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 Program (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 Programs that includes three programs for cattle.
“The Hog Price Insurance Program 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 Programs and wanted to bring those benefits to hog producers as well,” said Jack Hayden, Minister of Agriculture and Rural Development. “This program reflects the needs of our hog producers and provides them with a simple and bankable way to manage risk.”
Creating a customized program 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 program. As such, HPIP is flexible and reflective of the market and will deliver on what producers in Alberta require,” explains 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.”