Ontario Beef Cattle Financial Protection Program

The Ontario Beef Cattle Financial Protection Program provides structured financial protection to beef cattle sellers through regulated remittance fees and claim payments. The program is designed to ensure the prompt and fair settlement of transactions, even when there is default by buyers.

• Licensed dealers are required to remit fees on every head of cattle purchased, varying by type of sale, with amounts managed by the Livestock Financial Protection Board.
• The Livestock Financial Protection Board can pay 95% of any approved claim to sellers when a licensed dealer defaults, assuming timely claims and proper procedure were followed.
• When a licensed dealer sells to a producer and the producer defaults, the seller may receive 85% of approved claims, capped at $125,000, provided claims exceed $5,000 and adhere to notification and filing timelines.

Eligibility for the Ontario's Beef Cattle Financial Protection Program is determined by specific requirements related to the participation and compliance of beef cattle sellers and buyers in the market as follows:

• The buyer must be a beef cattle producer or a licensed dealer.
• Licensed dealers can include packing plant operators, abattoir operators, auction market operators, fair operators, exhibition operators, and country dealers.
• Dealers must have an active licence issued annually by Agricorp to conduct business as a livestock or livestock products dealer.
• New dealers must contact Agricorp for an application package.
• Beef cattle sellers (including cooperatives) must sell to a licensed dealer to qualify for financial protection under the program.
• Claims must be submitted within 30 business days from when the payment was due or from the date of sale, depending on the type of sale.
• Claims are only considered if sale was to a licensed dealer and proper notification procedures for non-payment were followed.

Who is eligible?

Sellers eligible for the Ontario's Beef Cattle Financial Protection Program include beef cattle producers, cooperatives, and licensed dealers. Buyers must also be beef cattle producers or licensed dealers to engage in transactions protected under this program.

• Beef cattle producers.
• Cooperatives.
• Licensed dealers, which include packing plant operators, abattoir operators, auction market operators, fair operators, exhibition operators, and country dealers.

Who is not eligible

The grant program does not list specific exclusions based on the type of company or industry, focusing instead on requirements for dealing in beef cattle. There are no additional stated restrictions primarily related to the status or main activity of the company.

Eligible expenses

The Ontario's Beef Cattle Financial Protection Program provides financial protection activities for beef cattle sellers and licensed dealers in case of buyer payment defaults. The eligible activities focus on filing claims and remitting fees to protect commercial transactions in the beef cattle industry.

• Filing a claim with the Livestock Financial Protection Board in case of a payment default by a buyer, within the specified timeline.
• Remitting fees per cattle head purchased as a licensed dealer, based on the type of sale.
• Submitting a Fee Return form with applicable payment as required by the transaction volume.
• Notifying Agricorp if payment is not received within the stipulated timeline.
• Reporting unlicensed dealer operations to Agricorp.

Eligible geographic areas

This program is backed by the Ontario provincial government aiming to protect beef cattle sellers within Ontario. The eligible geographical area for applicants is within the province of Ontario, Canada, ensuring support for local producers and dealers.

• Entities located within the province of Ontario, Canada.

Here are additional relevant details for the Ontario's Beef Cattle Financial Protection Program:

• Claims for non-payment must be submitted within 30 business days from when payment was due or from the date of sale, depending on the type of transaction.
• The Livestock Financial Protection Board manages the financial protection fund and adjudicates claims.
• The financial protection covers 95% of any approved claims for sales between licensed dealers and 85% for sales between licensed dealers and producers, subject to certain conditions.
• No compensation is provided for claims less than or equal to $5,000.
• Dealers must remit fees based on the type of sale, with different remittance schedules for annual versus monthly payments based on cattle purchase volumes.
• Dealers need to submit a Fee Return form, even if no sales occur during the specified period.
• If issues with payment arise, contacting Agricorp promptly is crucial for processing claims effectively.