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Livestock insurance program coming for Alberta beef producers: AFSC

First-in-Canada program will help protect producers against market risks

December 3, 2008 - Edmonton... A livestock insurance program, the first of its kind in Canada, will soon be offered to Alberta beef producers to help protect their operations from fluctuating market prices.

The Cattle Price Insurance Program (CPIP) will be offered by Agriculture Financial Services Corporation (AFSC) in addition to its suite of crop insurance programs. Alberta’s beef producers will be the first of the province’s livestock industries to be able to access the insurance program.

CPIP is an Alberta-made livestock insurance product tailored to provide price protection for Alberta cattle producers. The program was developed through a partnership with the federal government, the Government of Alberta and the Alberta Beef Producers.

“This type of insurance doesn’t currently exist in Canada and will be another tool our producers can use to help protect them from fluctuating cattle prices,” said George Groeneveld, Minister of Agriculture and Rural Development. “Livestock insurance will help support the livestock industry over the long term. The Cattle Price Insurance Program is one of the key initiatives highlighted in the Alberta Livestock and Meat Strategy.”

The Alberta Livestock and Meat Agency (ALMA) was instrumental in supporting this initiative and will be working closely with AFSC and the livestock industry over the next two years to increase awareness of the program.

CPIP will provide protection against drops in Alberta beef prices over a defined time period. Premiums would vary according to policy length and coverage desired. The insurance will be a voluntary, producer- funded program and will provide timely claim payments.

AFSC is targeting mid-2009 for launching a price insurance product for fed cattle and is in the design stages of a program for calves and yearlings.

About AFSC

Agriculture Financial Services Corporation (AFSC) is a provincial crown corporation with a private sector Board of Directors that provides farmers, agribusinesses and other small businesses loans, crop insurance and farm income disaster assistance. AFSC has provided Alberta farmers with hail insurance for over 60 years, and has grown into a diverse Corporation with several core businesses: crop insurance, farm loans, commercial loans and farm income disaster assistance. www.afsc.ca