Livestock Price Insurance (LPI) Strategic Review

AFSC is seeking proposals from qualified professionals to complete a strategic review third-party assessment of Livestock Price Insurance (LPI). Livestock Price Insurance is a market-driven program that allows livestock producers to purchase protection from unpredictable downward moves in the cash market for fed cattle, feeders, and calves. The program is a market-based risk management tool for producers that is voluntary to participate in and is producer funded. The program started in Alberta in 2009. In April 2014, the provinces of Alberta, British Columbia, Saskatchewan and Manitoba launched the pilot Western Livestock Price Insurance Program (LPI), with the support of Agriculture and Agri-Food Canada. In June 2024, LPI further expanded to three maritime provinces, but this expansion operates under its own specific funding agreement. Alberta provides operational and delivery services on behalf of all the other provinces (hereby known as the Service Provider or AFSC). Livestock Price Insurance is currently the only program that directly manages price for Canadian producers and is solely premium funded by producers. It represents the first of its kind of collaboration across provinces and federal governments to deliver this program. Goals of the review are to assess how the program is performing against the program objectives by: a. examining trends in loss rates and participation b. reviewing administrative efficiency c. assessing the program’s long-term sustainability and producer behaviour d. evaluating alignment of current program design with future direction This strategic review will assess the program as a whole but also review components with a product specific lens, while considering the user industry as well. This analysis will objectively inform the future direction of this program and aid in development of Multilateral Agreements.