A new federal livestock insurance program will only apply to western farmers.

A new livestock insurance program announced in Tuesday's federal budget will only apply to western farmers, but a group representing cattle producers on P.E.I. hopes the plan will spread east.

The new federal program will allow farmers to buy insurance against drops in livestock prices.

Ivan Johnson, chair of P.E.I. Cattle Producers, said the industry in the east does not have the size of inventory and other benchmark figures necessary to set up a program yet.

"There's a lot of factors that go into it, certainly the inventory numbers and sales … It just happens to be in the west they've got some of their stuff in order," said Johnson.

Wayne Easter - custom

There needed to be more in the budget for eastern Canadian livestock farmers, says Malpeque MP Wayne Easter.

"Hopefully that will work its way towards here and we can build on how they're setting theirs up."

Liberal P.E.I. MP Wayne Easter told CBC News Wednesday the federal government should have done more for cattle producers in eastern Canada.

"Nothing in here for eastern Canada," he said.

"There's nothing here to really give producers, young people, a hope to come into the industry."

Easter said a new farm bill signed by the U.S. President Barack Obama will also hurt the ability of Island farmers to compete.