Designing Revenue Insurance for the Cow-Calf Industry in Western Canada

Researchers: Tomas Nilsson, University of Alberta

Research Summary

The negative impact of BSE on the cattle industry has renewed interest in developing revenue insurance to cover catastrophic risks that are not covered by other risk programs such as CAIS. Alberta Beef Producers (ABP) association is exploring issues of cattle risk insurance and how this might be integrated into the provincial risk agency (e.g. Alberta’s AFSC). The project will extend the design of cattle risk insurance to the cow-calf sector. This will evaluate the need for livestock insurance and contribute to the development of future market and/or government based insurance products as suggested under the next round of the agricultural policy framework.

Significance of Research

The outcomes will be:

1. An improved evaluation of the need for some form of cattle revenue insurance for the cow-calf sector.

2. An evaluation of approaches to the design of the insurance product and the potential benefits and costs (e.g. premiums) that can be used by the Federal and provincial governments in risk program design.

3. Policy brief on the potential for insurance at the cow-calf sector; research report on model and model results.

Summary of Research Results: Yet to come.