Ontario Beef Cattle Financial Protection Program

By Gary Sliworksky
OMAF/MRA Rep.

The Ontario Beef Cattle Financial Protection Program is established through provincial legislation and regulation to provide protection to cattle sellers against default in payment when cattle are sold to a licensed dealer. The program is administered by the Ontario Ministry of Agriculture.
The program consists of the licensing of livestock abattoirs, associations, auction markets, country dealers and packing plants. A fund is established from a compulsory 5 cent per head deduction when cattle are sold. A claim can be made against the fund if an eligible cattle seller has suffered a default in payment. Claims are adjudicated by an industry board appointed by the Minister according to a set of program criteria.
Any producer who sells cattle to an unlicensed livestock abattoir, auction market, country dealer, or packing plant is not covered under the program. Therefore it is important to sell cattle to a licensed livestock abattoir, auction market, country dealer, or packing plant.
If a seller is in any doubt whatsoever regarding the CURRENT status of a prospective purchaser, he/she should telephone the number listed below.
If you have any questions contact Jim Wideman at the Ontario Ministry of Agriculture directly at 1-855-744-2440.
A producer should make smart decisions and take other steps to protect themselves as well. One of the easiest ways is to have weights on your cattle when you sell them. This is especially important if you are selling directly off the farm. This then allows you to negotiate, or know, the price you are getting per pound.
Generally when you sell to an abattoir, auction market or packing plant you get an invoice (and a weight) for what you deliver. This may not always be the case when selling to a country dealer. Before the truck leaves your yard with the cattle you should take additional measures to protect yourself. Your invoice for the load should include the weight of the animals, the number of animals, animal RFID tag numbers, the price per pound (or per head or per load), the license number of the truck, and the date.
Remember that there is a regulation in The Beef Cattle Marketing Act regarding license fees (checkoff). Every cattle seller has an obligation to pay the $3.00/head (plus GST) checkoff fee. The regulation requires that auction market operators, packing plant operators and livestock dealers deduct the checkoff from the proceeds payable to cattle sellers. They are then required to remit the checkoff fees they have deducted to the Beef Farmers of Ontario. As a seller, any invoice you receive on the sale of cattle should indicate if the price includes payment of the BFO checkoff.

Events to Remember
·Apr. 26 - Rainy River Cattlemen’s Spring Sale, Stratton Sales Yard. Contact Sales Manager at 487-2731.