For release: October 25, 2004

CANADA-ONTARIO SET-ASIDE PROGRAMS NOW AVAILABLE

The Canada-Ontario Feeder (Calf) Set-Aside and the Canada-Ontario Fed Cattle Set-Aside Programs are now available to the province's cattle producers. The set-aside programs are designed to reduce the effects of the oversupply of cattle in Canada on the market price by holding calves and market-ready cattle on the farm.

Ontario will provide up to $30 million in assistance for cattle producers who continue to face border closures, following the discovery of a single case of Bovine Spongiform Encephalopathy in an Alberta cattle herd in May, 2003.

Canada-Ontario Fed Cattle Set-Aside Program

A reverse auction system will allow producers to submit bids for the per-day per-head price for feed which they would be willing to accept to set aside a number of their market-ready cattle. Auctions are currently being held weekly, running from 2:00 p.m. Monday to 2:00 p.m. Wednesday (ET). At the beginning of each auction, the number of days for set-aside, which will range from 90 to 120, will be announced.

After each auction, and once all bids from across the country have been received, cattle will be selected based on the lowest bid until the target number of set-aside cattle is reached, or until a ceiling bid price is reached.

To be eligible to participate in the reverse auction, producers must register with the Ontario Ministry of Agriculture and Food, by calling 1-888-292-5856. Participants will receive a Bidder Registration Number and a PIN number.

Canada-Ontario Feeder (Calf) Set-Aside Program

The feeder set-aside program will hold back a portion of the 2004 beef calf crop until January 1, 2006. The program will compensate producers for costs associated with setting aside 2004 calves.

Producers will be able to voluntarily enrol beef calves and will receive a payment of $200/head to compensate them for the costs associated with holding these calves from slaughter. Eligible calves must be tagged with colour-coded Canadian Cattle Identification Agency (CCIA) tags to identify them as set-aside calves.

Ontario's target is to set aside 115,000 calves. Producers will be able to enroll eligible beef calves in the program until that target is met, or until January 15, 2005. Application forms will be available in OMAF resources centres across the province and on the ministry's website the week of November 1, 2004. Producers can also obtain application forms by calling 1-888-292-5856.

Additional details about both set-aside programs are available on the ministry's website.

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Media Contact:
Mary Devorski
Minister's Office
416-326-3077
416-606-8303 (Mobile)

Program Details:
Barb Alves
Policy and Farm Finance Division
519-826-3201