Beef Industry Letter: Advancing Equity in Canada's Business Risk Management through Livestock Price Insurance

CCA

19 minutes ago

4 min read

October 23, 2026

To:

Hon. Heath Macdonald Hon. Lana Popham

Federal Minister of Agriculture and Agri-Food BC Minister of Agriculture and Food

Hon. Tara Sawyer Hon. David Marit

AB Minister of Agriculture and Irrigation SK Minister of Agriculture

Hon. Ron Kostyshyn Hon. Sam Oosterhoff

MB Minister of Agriculture ON Minister of Agriculture, Food and Agribusiness

Hon. Bernard Sévigny Hon. Pat Finnigan

QC Minister of Agriculture, Fisheries and NB Minister of Agriculture, Aquaculture and

Food Fisheries

Hon. Hilton MacLennan Hon. Greg Morrow

PEI Minister of Agriculture NS Minister of Agriculture

RE: Advancing Equity in Canada's Business Risk Management through Livestock Price Insurance

Dear Federal and Provincial Ministers of Agriculture,

On behalf of the Canadian Cattle Association, Canada's provincial cattle associations, and the Canadian Cattle Youth Council, we urge governments to implement cost-shared premiums for Livestock Price Insurance and formally include the program within Canada's Business Risk Management (BRM) suite.

As farm transfers and generational renewal remains a major hurdle in Canadian agriculture, equitable and effective BRM programming is particularly important for the next generation of beef producers. These improvements to Livestock Price Insurance will help support Canada’s cattle producers in contributing to government goals of economic growth, resilience and strengthening domestic and global food security through an ambitious trade agenda.

Livestock Price Insurance (LPI) allows cattle producers to proactively manage their price risk before losses occur. Unlike Canadian crop insurance programming and livestock risk management programs available to U.S. cattle producers, Canada’s cattle producers are required to bear the full cost of participation. LPI is also not available nationally. Outside of Western Canada, the program is offered through a pilot program in the Maritimes and remains outside Canada's core BRM suite.

These gaps point to a fundamental issue of equity for Canada’s cattle producers.

Governments collectively spend nearly $1 billion annually to support cost-shared crop insurance premiums1. Providing equitable support to the cattle sector would represent a fraction of this expense. The estimated annual cost of government cost-shared LPI premiums would be a total provincial and federal government contribution of $56-95 million in years of high market volatility, where lower costs are expected in years when markets are stable.

This is not a request for special treatment. It is a request for equitable treatment.

The United States also continues to adapt and strengthen its livestock risk management programs to meet evolving industry needs, including herd retention and rebuilding. This builds off the U.S. government decision several years ago to cost-share their Livestock Risk Protection Program which significantly increased producer participation and expanded risk coverage across the cattle sector. To remain competitive, Canadian cattle producers need program improvements at home that keep pace with the supports available to U.S. producers.

After years of contraction, Canada’s cattle producers are beginning the long process of rebuilding the national cow herd, highlighting the critical need for action today. To continue this momentum, cattle producers need effective tools. LPI is uniquely positioned to support these efforts amid market and trade uncertainty. By reducing exposure to price volatility, the program improves business planning and gives producers greater confidence to make long-term investments in growing their herds.

The next generation of cattle producers has a particularly strong stake in this discussion with only 12 per cent of beef cattle operations reporting an operator under the age of 35 according to the 2021 Agriculture Census. LPI is recognized by lending institutions and helps put young people in a stronger position to borrow the money they need to maintain and grow their herds and businesses. Ensuring equitable access to LPI across Canada sends a strong signal that governments are committed to creating the conditions necessary for the next generation to succeed.

Importantly, a national approach should build on, not replace, successful provincial programming. Producers in Ontario and Quebec have well-established provincial risk management programs, and any enhanced federal contribution to LPI should be flexible enough to be applied towards strengthening these existing tools. At the same time, the undersigned organizations across Canada recognize the value and opportunities in a more resilient national cow herd and are united in calling on governments to strengthen the LPI program.

Canadian farmers and ranchers need a strong toolbox of risk management programs. Different risks require different tools, and Canada's diverse agricultural industry depends on a suite of complementary programs working together. Changes to LPI would advance the Ministers’ shared priority noted in the Halifax Statement to improve BRM programs to be more responsive and equitable. Now is the time for Canada's Agriculture Ministers to implement cost-shared LPI premiums and include LPI in the BRM suite to strengthen risk management for cattle producers.

We also wish to highlight the importance of the proposed AgriStability improvements to expand allowable expenses and increase the payment cap to $6 million. These are critical program adjustments and their implementation is paramount. We therefore urge governments to finalize these changes while also recognizing the importance of strengthening LPI as these are complementary, not competing, priorities. Progress on one must not come at the expense of the other.

We appreciate your consideration and look forward to working with governments to strengthen the national cow herd and continue to drive economic growth and resilience.

Sincerely,