Cattle Price Insurance Program (CPIP)

[ward.toma]

As for risk at the cc level? Establish a relationship to
an upstream price. The strength of the relationship
influences the cost. Stronger relationship, less cost.

[ward.toma]

I've wondered this but never looked into it. The
upstream price may not be a cattle price but perhaps
the cost of feed at the feeder level? The feeding
margin?

[smcgrath76]

My thoughts are that it is three or four
fold...
1. the canadian dollar
2. the feeding cost
3. the fed price
The challenge is that a calf born in
spring 2010 for example, may not even go
on feed until spring or even fall 2011.
They may finish anywhere between 13 - 24
months of age and a lot of
risk/change/etc. can happen in between.
I am not sure how you would forecast
that far ahead for anything like a
reasonable premium.

[charliep]

Can't comment for sure but suspect this will be handled by dividing the program into tighter time periods. Example would be a program for calves (cow calf operations), backgrounding and perhaps grassers. A rancher would make decisions about the calves/decide whether to participate or not. In the fall when the rancher decides whether to background or not, there would another CPIP program for this weight range.

Will note the original consultant that did the CPIP availalbe today is working on the feeder cattle one. ABP is the project for this project under the Private Sector Risk Management Partnership funding via the federal government.

[charliep]

ABP is the project manager.

[charliep]

Should also correct myself in that the feeder project is not funded through the PSRMP.