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Production Insurance For Hogs Coming This Fall

Pork producers will have the opportunity to purchase production insurance as early as fall 2011, Manitoba Pork general manager Andrew Dickson announced at the 25th Manitoba Swine Seminar.

Production insurance has been a long-term goal of the organization, he said.

“All we are asking for in the livestock industry is can we get some sort of insurance product that is similar to what the crop industry has,” said Dickson. “We just want a concept which is similar as to what crop producers have been getting each year since 1968.”

Manitoba Pork has been working closely with Ontario and Quebec for three years to create an insurance proposal. That program received funds from the federal government and province announced in its November throne speech that it would be moving ahead with the plan. Government officials are now analyzing them using a third-party actuarial assessment, with the hope that it will be ready for purchase by producers by the fall.

Manitoba Pork has come up with something unique to the industry, said Dickson.

“This is different from other proposals,” he said. “This is all-risk mortality insurance. Regardless of the cause, your mortalities over a certain industry normal would be covered. You would pay a certain premium for this, and your level of premium would depend on how much deductible you would be prepared to take.”

The proposal presented to government included coverage for fire and mechanical breakdown. However Dickson is skeptical the government will include that in the final product.

“We don’t think the province or the federal government will go for that, because you can buy fire and mechanical breakdown causes for mortality privately, as part of your normal insurance package.”

There will be no loss-of-business insurance included in this program. As well, certain diseases will be excluded, such as PRSS. Circovirus will be included in the insurance program only if the producer vaccinates for it.

Also, any diseases the federal government offers compensation for, such as foot-and-mouth disease, are not eligible for insurance coverage.

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