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For more than 25 years, the Ontario
Beef Cattle Financial Protection Program has protected cattle sellers
when a licenced dealer defaults on payment. Changes were made to the
program, effective July 1, 2011, because you told us how important they
were. We were pleased to work with the Ontario Cattlemen’s Association
to make this happen.
The program is expanding coverage
for cattle farmers and licensed dealers, and bringing payment
requirements in line with current banking practices.
Here is a complete list of the
changes.
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All approved claims by producers
or Licenced Dealers will be paid at 95 per cent instead of the
current 90 per cent.
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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.
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All sales between Licenced
Dealers under the Livestock and Livestock Products Act and producers
will be provided financial protection coverage. Currently only sales
that were done by public auction were covered.
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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.
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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.
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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.
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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.
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Cheque must be dated no later
than either the sixth business day if the cheque is $15,001 or more
and no later than the ninth business day if the cheque is $15,000 or
less.
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Payment can be made by cheque,
direct deposit, electronic transfer or any other kind of transfer
agreed to by the seller and the buyer.
For more information on the Ontario
Beef Cattle Financial Protection Program, we would encourage you to
visit
http://www.omafra.gov.on.ca/english/food/inspection/index_fpu_page.htm.
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