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Protection for Producers
This FAQ is intended for general reference only. You should read the Livestock and Livestock Products Act and the Livestock Patrons’ Claim Tribunal Regulation (AR 257/97) for full details on:
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Who is eligible for coverage?
You are eligible for coverage if you run an Alberta farming operation in which you either:
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maintain cattle or horses for the purposes of propagation; or
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maintain cattle or horses for growing or finishing.
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What sales are covered?
Sales to a licensed livestock dealer of live cattle or horses which were in Alberta, Dawson Creek or Lloydminster when you agreed to sell them.
If the animals were either sold in Dawson Creek or Lloydminster, or came from your farming operation outside Alberta, they must also have been in Alberta for a minimum of 30 days immediately before the sale.
What sales are not covered?
Your sale is not eligible for coverage if:
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the reason the licensed livestock dealer failed to pay you is because there is a dispute between you and the dealer about the terms of the sale; or
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you and the licensed livestock dealer are partners or operate your businesses through related corporations.
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What must you do or not do at the time of sale?
To ensure that your sale is covered under this program, you must do the following:
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have the cattle or horses brand inspected;
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pay the levy to the Fund; and
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if you are paid by cheque, you must deposit or cash the cheque as soon as you reasonably can.
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You must not do the following:
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sell to a non-licensed buyer when you know that another licensed livestock dealer has not been paid by that buyer;
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extend credit to the licensed livestock dealer; or
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collude or conspire with the licensed livestock dealer.
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For example, if the licensed livestock dealer gives you a cheque, but asks that you not deposit it for a few days, that is extending credit and you will not be able to obtain reimbursement from either the dealer’s bond or the Fund.
What must you do if you are not paid?
You must notify the Fund Administrator as soon as you reasonably can after you know about the non-payment. Your notice should include a statement against the licensed livestock dealer’s bond.
If you do not properly notify the Administrator, your claim will be denied. Notice must be sent by fax or registered mail to:
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Fund Administrator
Livestock Identification Services Ltd.
# 109, 264 Midpark Way SE
Calgary AB, Canada T2X 1J6
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Telephone
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(403) 509-2088
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Fax
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(403) 509-2098
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Toll Free
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1-866-509-2088
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What will happen after you make a claim?
You will be requested to provide the Administrator with details of the sale and any documents you have relating to the sale.
If the Administrator is satisfied that one or more producers were not paid by the licensed livestock dealer, the Administrator may:
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publish a notice in the local newspaper, requesting other producers who have not been paid to file claims against the dealer by a specific date; and
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suspend or cancel the dealer’s license.
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Once the Administrator has determined the extent of the claims, he will use the dealer’s bond to pay, on a proportional basis, the producers’ claim or claims.
If the dealer’s bond is large enough to pay your claim in full, that is what you will receive.
If the dealer’s bond is not large enough to pay all of the claimants at least 80% of their claim, the Administrator will automatically notify the Tribunal.
If the Tribunal decides that one or more of the claims meet the requirements described above, they will make a payment up to 80% of the sale price.
Who do you contact for more information?
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Fund Administrator
Livestock Identification Services Ltd.
# 375 11012 Macleod Trail South
Calgary AB, Canada T2J 6A5
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Telephone
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(403) 509-2088
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Fax
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(403) 509-2098
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Toll Free
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1-866-509-2088
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Livestock Patrons’ Claims Review Tribunal
Tribunal Secretariat
3rd Floor, 6909 – 116 Street NW
Edmonton AB, T6H 4P2
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Telephone
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(780) 422-7249
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Fax
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(780) 427-1437
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Toll Free
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1-310-0000-422-7249
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