Changes to the Regulation that Sets the Licence Fees Payable by a Person who sells Cattle as proposed by industry and brought forward by OMAF
Regulation 54 (Licence Fees)
Regulation - LGIC
Bill or Act:
Beef Cattle Marketing Act
Summary of Decision:
O. Reg. 172/14 was filed on August, 19, 2014 with the Registrar of Regulations.
This regulation amended Regulation 54 under the Beef Cattle Marketing Act. The amendment to Regulation 54 will increase the fee payable by a person who sells cattle in Ontario and that is paid to and retained by the BFO from $2.00 per head to $3.00 per head. This would raise the total fee payable by cattle sellers under Regulation 54 from $3.00 to $4.00 per head.
The amendments will be effective on November 1, 2014.
May 1, 2014
Summary of Proposal:
OMAF is proposing an amendment to Regulation 54 (Licence Fees) which is made pursuant to the Ontario Beef Cattle Marketing Act (BCMA). The proposed change would increase the fee payable by a person who sells cattle in Ontario and that is paid to and retained by the BFO from $2.00 per head to $3.00 per head (the additional national levy would remain unchanged at $1.00 per head). This would raise the total fee payable by cattle sellers under Regulation 54 from $3.00 to $4.00 per head. The last change to the fees charged under the BCMA occurred in December 2007.
The change was requested by BFO. BFO is established under Provincial legislation to support the beef cattle industry in Ontario through promotion, research and other activities. It represents the over 19,000 beef farmers in Ontario. The request for the fee increase is being driven by BFO's concern that with the decrease in herd size and the increase in operating expenses its ability to maintain services at their current levels will become more challenging. The BFO's 2014 budget is projecting a deficit of just over $500,000 (see link to BFO's Annual report below).
If approved, the increase would generate an additional estimated $1 million annually in revenue for the BFO. This would enable the BFO to continue supporting core programs, and enhance support for Ontario Corn Fed Beef and Sharecost programs. BFO believes that a $1.00 increase to the licence fee will ensure a stable amount of funding for the Association's activities for the foreseeable future. BFO's delegates voted in favour of the fee increase at their Annual General meeting (AGM) on February 9, 2014. The vote passed with just under 80 per cent in favour.
Under Regulation 54 every cattle seller is required to pay $3.00 for each head of cattle sold.
− A licence fee of $2.00 for each head of cattle sold is payable to the BFO. The revenue generated is used to fund BFO's programs and activities, and maintain daily operations.
− In addition a federal agency is permitted to charge a fee of up to $1.00 per head. The levy, currently $1.00 per head, goes to Canada Beef Inc. (also known as the National Check-off Agency) to fund research and marketing activities on behalf of the entire industry.
Exemptions exist only for cattle sold in a public auction sale that is organized for the purpose of selling only cattle for the production of milk or where the seller does not reside in Ontario. Packing plant operators, auction market operators livestock dealers and other persons who receive cattle from a seller are required to deduct the BFO check-off from the proceeds payable to the seller and remit fees to the BFO.
Farm Finance Branch
1 Stone Road, West, 2nd Floor,
Guelph, Ontario N1G 4Y2
November 1, 2014