BSE recovery program enters phase three

Gary Sliworsky,
Ag. Rep.

The Ontario BSE Recovery Initiative Phase III will address market-ready cattle and veal calves that were held in inventory by Ontario producers on May 20 and have not been eligible for a payment under either of the preceding BSE compensation programs. Ontario cattle producers will be eligible for compensation upon sending those market-ready cattle and veal calves remaining in their May 20 inventory to slaughter. The program termination date will be determined based on program uptake, funding availability, and the degree to which market prices respond to enhanced export market opportunities.

Market-ready steers, heifers and veal calves that are sold for slaughter will be eligible for compensation. The applicant must have owned the market-ready cattle (housed in a feedlot) or the veal calves on May 20, 2003. Any cattle enrolled in set-aside (the Ontario BSE Recovery Initiative - Phase 2) are not eligible for the slaughter component of Phase 3. Any animals compensated for under the Canada-Ontario BSE Recovery Program are not eligible.

Market-ready cattle or veal sold before August 31 and slaughtered in Ontario by September 5, 2003, are eligible for compensation under the Canada Ontario BSE Recovery Program.

Market-ready cattle or veal sold after August 31, delivered for slaughter within 14 days of the sale date, and slaughtered after September 5, 2003, are eligible for a compensation payment under this new program.

Market-ready cattle or veal sold before August 31, delivered for slaughter within 14 days of the sale date, and slaughtered after September 5, 2003 are eligible for a compensation payment under this new program.

Eligible market-ready cattle must be slaughtered within 14 days of the sale date, and proof of slaughter must be provided. For auction market sales of cattle, auction markets must obtain certificates from buyers indicating that cattle sold for slaughter will be slaughtered within 14 days of the sale date. Further documentation of proof of slaughter must be provided if required. For auction market sales of steers under 1,300 pounds or heifers under 1,200 pounds, operators of the livestock auction markets must support program applicants by securing proof of slaughter where required.

Consistent with the Canada Ontario BSE Recovery Program, the phase 3 program payment will be 90% of the difference between a reference price and the greater of the weekly average Ontario market price or the established weekly market price floor. For the period of September 1-14, 2003, the reference price will be $1.00/lb (live weight) and program payments will compensate for 90% of the price difference between $1.00/lb and the greater of the weekly average Ontario price or the program price floor. The program price floor for this period is 70% of the reference price (or $0.70/lb live weight), therefore the maximum payment is 90% of $0.30, or $0.27/lb. If the weekly average Ontario price is higher than $0.70/lb, payments will be reduced accordingly.

The application form for the Ontario BSE Recovery Initiative (slaughter component) is currently being developed. As soon as it is available, it will be posted on the OMAF Web site and copies will be sent to auction barns and abattoirs.

For more information regarding the Ontario BSE Recovery Initiative, please call 1-877-838-5144 or
e-mail: ofidp@omaf.gov.on.ca