The Saskatchewan Stock Growers Association (SSGA) welcomes Minister of Agriculture David Marit鈥檚 announcement today, (), of additional funding to help livestock producers manage the impacts of COVID-19-related market disruptions.
The $10 million in new funding includes $5 million for Saskatchewan鈥檚 share of the costs associated with the national AgriRecovery set-aside program, and $5 million to partially offset higher premium costs under the Western Livestock Price Insurance Program (WLPIP).
The WLPIP allows producers to buy insurance against price fluctuations and lock in a floor price on their calves this fall, but WLPIP premiums have tripled and even quadrupled due to uncertainty from COVID-19.
The provincial government will cover 40 per cent of the increased premium costs dating back to February 25. The SSGA is calling on the federal government to contribute the other 60 percent of the premium increase.
鈥淕iven the situation, insuring a profitable price through WLPIP is a good business decision. Producers can鈥檛 afford not to have coverage,鈥� said SSGA president Bill Huber. 鈥淕overnment assisting with premiums will make this necessary coverage more affordable.鈥�
The Saskatchewan government will also fund the 40 percent provincial contribution to the AgriRecovery set-aside program, giving Saskatchewan livestock producers access to a total of $12.5 million. The federal government announced their 60 percent contribution to this program last week.
The AgriRecovery set-aside program will compensate producers for maintaining animals while processing capacity is reduced.
Huber said with uncertainty in the packing plants, this is an important step.
鈥淲ith the COVID-19 pandemic affecting processing capacity, livestock producers are facing a serious price crunch this fall,鈥� he said. 鈥淚t is already costing the cattle industry $400,000 per day to feed cattle that normally would have been processed by now, and that number is growing every day as more animals go unprocessed.
鈥淲e are concerned because negative margins in the feeding sector and a backlog of cattle will wreak havoc with calf prices in the fall.
鈥淲e鈥檙e grateful to the minister and the government for participating in these programs and recognizing the importance of the livestock industry.鈥�
SSGA is a province-wide member driven advocacy organization representing independent self-reliant cattle producers鈥� interests for 107 years. The SSGA advocates through education, communication, and research for an economically and environmentally sustainable cattle industry where cattlemen are free to do business--within a free and open market place, free from industry limiting laws and regulation.
