The Ontario Beef Cattle Financial Protection Program was 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 Agricorp.
The program consists of the licensing of livestock abattoirs, associations, auction markets, country dealers and packing plants. A fund is established from a compulsory ten 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 contact:
Mail: Agricorp, 1 Stone Road West, Box 3660 Stn. Central, Guelph, ON N1H 8M4
Five Cent Levy Increase Under the Ontario Beef Cattle Financial Protection Program
February 1, 2016 - As a result of strong cattle prices, the membership of Beef Farmers of Ontario (BFO) and the Veal Farmers of Ontario (VFO) expressed concerns about the Ontario Beef Cattle Financial Protection Fund and its ability to protect farmers in a default payment situation. In light of this, industry groups recommended that an acturial study and review be commissioned by the Livestock Financial Protection Board to address the funding concerns.
The review of the Fund was completed in September 2015 which projected a gradual depletion of the Fund over the next five years, unless the fees are increased.
At the request of the Livestock Financial Protection Board, the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has approved amendments to Ontario Regulation 321/11 (O. Reg. 321/11), which sets out the fees payable to the Livestock Financial Protection Board, raising the fee from five cents per head to ten cents per head. This fee increase took effect on February 1, 2016.
Download a copy of the letter
How To Protect Yourself
Always deal with a licensed dealer. When in doubt, ask to see the license or check here for a current list of licensed dealers. Sales to an unlicensed dealer are not covered by the Ontario Beef Cattle Financial Protection Program.
Do not extend credit to a dealer. This means that you should never ship another load of cattle once payment for a previous load is overdue.
Notify the Ministry if you do not receive payment on time.
File your claim with the Livestock Financial Protection Board no later than 30 days after the day of sale.
The Ontario Beef Cattle Financial Protection Program Licensed Dealer List
The complete listing of licensed dealers is maintained by the Ontario Ministry of Agriculture and Food. Please click here to be directed to this complete listing.