Beef Cattle Financial Protection Program: 2011 Changes

On July, 1, 2011, the following changes were made to the regulations governing the Ontario Beef Cattle Financial Protection Program:

• All approved claims by producers or Licenced Dealers will be paid at 95 per cent instead of the current 90 per cent.
• All approved claims by Licenced Dealers against producers will be paid at 85 per cent instead of the current 70 per cent. The maximum payout for any claim in this category will be $125,000 instead of the current $75,000. No payment is made in this category if the claim is for$ 5,000 or less.
• All sales between Licenced Dealers under the Li vestock and Livestock Products Act and producers will be provided financial protection coverage. Currentl y only sales that were done by public auction were covered.
• All Licenced Dealers under the Livestock and Livestock Products Act will remit a prescribed fee (currently five cents) for all cattle sold or consigned by the Licenced Dealer, in addition to the prescribed fee that they are required to deduct from the seller.
• Buyers will be required to make payment to the seller so that the payment can be deposited in the seller's bank no later than 1:00 p.m. on the ninth business day following the sale day if the sale is $ 15,000 or less.
• Buyers will be required to make payment to the seller so that the payment can be deposited in the sellers bank no later than 1 :00 p.m. on the sixth business day following the sale day i f the sale is$ 15,001 or more.
• Sale day is the day the cattle are weighed if sold by weight, the day cattle are sold, if sold by the head or grading date if the cattle are sold by weight and grade.
• Cheque must be dated no later than either the sixth business day if the cheq ue is $15,001 or more and no later than the ninth business day if the cheque is $15,000 or less.
• Payment can be made by cheque, direct deposit, electronic transfer or any other kind of transfer agreed to by the seller and the buyer.