Ontario Beef Cattle Financial Protection Program
ON, Canada
Recover livestock sales losses in Ontario
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Other Support
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Agricorp
- Government of Ontario
grant_single|status
grant_card_status|open
grant_single_labels|preview
Financial protection to beef cattle sellers when a licensed dealer defaults on payment.
grant_single_labels|projects
This program applies to beef cattle sellers and buyers operating within the province of Ontario. It is specifically managed under Ontario's regulatory framework to support the regional livestock sector.
- Eligible businesses must operate within the province of Ontario, Canada.
grant_single|admissibleProjectsExample
$25,000
Establishing a financial training program for beef cattle dealers
$48,000
Launching an audit service for beef cattle transaction compliance
$32,000
Establishing an emergency fund for beef cattle sellers facing defaulted payments
$40,000
Implementing a new payment tracking system for beef cattle transactions
$36,000
Initiating a mediation service for resolving payment disputes in beef cattle sales
$60,000
Developing a secure online platform for beef cattle sale and purchase
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|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.
grant_single_labels|register
- Step 1: Confirm Eligibility
- Ensure you are a beef cattle producer, cooperative, or licensed dealer as specified in the program's criteria.
- Step 2: Maintain Active License (if applicable)
- If you are a dealer, verify that your dealer license is active and renewed annually through Agricorp.
- Prepare to provide necessary financial statements as part of the licensing process.
- Step 3: Adhere to Payment Guidelines
- Ensure that payments for purchased beef cattle are made according to specified timelines to avoid defaults and retain eligibility for claims.
- Step 4: Remittance Fees Compliance
- Complete the Fee Return form provided by Agricorp and submit it with applicable remittance fees to the Livestock Financial Protection Board.
- Adhere to required submission frequencies (annually or monthly) based on your purchasing volume.
- Step 5: Report Non-Payment
- If a buyer defaults on payment, notify Agricorp immediately to initiate the claim process with the Livestock Financial Protection Board.
- Follow proper notification procedures as outlined in the program guidelines.
- Step 6: File Your Claim
- Submit your claim to Agricorp within 30 business days from when payment was due, with all required documentation.
- Ensure claims align with board conditions, including dealing with licensed dealers and following appropriate notification protocols.
- Step 7: Follow Up
- After submitting your claim, wait for the Livestock Financial Protection Board to contact you with further instructions and possible decisions.
grant_single_labels|otherInfo
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.
Apply to this program
Understanding Ontario's Beef Cattle Financial Protection Program
The Beef Cattle Financial Protection Program in Ontario offers a financial safeguard for beef cattle sellers, ensuring they receive payment even if buyers default. This program is applicable to producers, cooperatives, and licensed dealers involved in the beef cattle market.
Exploring the Beef Cattle Financial Protection Program's Mechanism and Benefits
The Ontario Beef Cattle Financial Protection Program is dedicated to offering security and financial assurance to sellers of beef cattle, which includes producers, cooperatives, and licensed dealers. The crux of this program lies in its robust framework designed under the Livestock and Livestock Products Act, mandating that all dealers involved in livestock transactions possess a valid, active dealer’s license. This requirement creates a regulated environment where integrity and adherence to payment responsibilities are stringently enforced.
For dealers, the annual licensing process involves applying to Agricorp, an organization that scrutinizes applications and financial records to ascertain the eligibility of dealers. This meticulous process ensures that only financially stable entities participate in the cattle trade, consequently safeguarding sellers against potential defaults. Licensed dealers are typically entities like packing plant operators, auction market operators, and country dealers, all of whom play pivotal roles in the cattle market chain.
One of the integral facets of the program is its defined payment timelines, which vary based on the transaction's value. For instance, transactions less than $15,000 require payments to be deposited into the seller’s bank by the ninth business day following the price determination, contrasting with larger transactions of $15,000 or more, which necessitate payment by the sixth business day. These timelines provide clarity and predictability, protecting sellers from the financial discrepancies associated with delayed payments.
The program also emphasizes on the remittance of fees for each cattle transaction, managed by the Livestock Financial Protection Board. This systematic fee collection, differing based on sale type, ensures a continual fund that can be tapped into if a buyer defaults. Licensed dealers remit these fees monthly or annually, depending on their purchase volume, thus maintaining a healthy financial ecosystem to support claims arising from defaults.
Should a payment default occur, the program has a structured claim process. Sellers can file claims within specified periods, depending on the nature of the transaction, and are protected on the condition that the proper notification procedures are followed. This compliant approach enables the Livestock Financial Protection Board to evaluate claims effectively, potentially recouping 95% of an approved claim for sales to licensed dealers.
For dealers selling to producers, financial protection entails an 85% claim recovery, with a cap of $125,000. These protections, however, exclude claims under a certain threshold, emphasizing the program's focus on significant financial impacts. Ultimately, this robust scheme underscores its foundational goal — to fortify the beef cattle market against financial instability, thus ensuring a reliable and sustainable trade environment in Ontario's agricultural sector.
