opening address 2009 - albertadepartment/deptdocs... · opening address 2009. good morning...

Opening Address 2009 Good Morning everybody—On behalf of your provincial board and administrative staff we offer you a warm welcome to Convention 2009 Guests today:

Cliff Munroe Director – Regulatory Services Vaughn Christensen – Provincial Supervisor & Manager of Inspections Dale Engstrom – Partnership Manager, Agriculture and RD Rick Burton – Newly elected Chairman of ABP Glenda Taylor – Assistant Director- Financial Guarantees- AAFC

At this event we always try to inform you, challenge you and occasionally entertain you. Today, we have a full slate planned--- including 2 interesting speakers, our Agriculture minister and his deputy, and a hot issues panel—and that’s just today!! Tomorrow we get to do it again with an interesting morning speaker, Informative updates from the many industry associates-- wrapping up with our annual general meeting and the banquet. We have brought together what we think are the top speakers of the day and the industry leaders not only to inform you, but also to “listen”. As they say “the rest will then be up to you”. I sincerely hope you enjoy yourself and hear what the industry has to offer. Pause- Every year we do our best to acknowledge the many sponsors that allow us to continually host our convention. This year we have to make an even bigger effort to thank these people. You see, as our industry goes through hard times, the companies that do business with us see hard times. We unfortunately have seen a drop in sponsorships this year as well as fewer trade fair people. Those dedicated sponsors are: 1. ATB Financial, TD Canada Trust , the Ag & Food Council of Canada, RBC, Schering Plough, Capri Centre/Billy Bobs, 2. Elanco, Novartis, Reg Cox, and Pfizer Animal Health. Again please thank these folks who continue to support our organization!! Let’s not forget the many participants at the trade fair.

Pause- Our theme this year is “Looking Beyond the Herd” This is both a symbolic and very meaningful theme; our industry is in deep trouble and we have to look above and beyond what we know and are comfortable with. When we take look back at our previous themes “Change is good”, Steppin’ Up, and “Beef Industry Not for Sale” they all speak of a common thread. This industry is an integral part of Alberta that is changing, whether we want to or not. You have two choices:

1. sit back, do nothing, complain and take what we get-- say “to hell with it, if they get hungry enough they will take it the way it is” OR 2. we can take control, reshape our destiny, look beyond the past,

step up to the plate and make changes for the good. It is time for a real transformation of beef production and the way the industry functions to meet today’s modern world and be ready to take advantage of the future.

Let’s look back on history: For the last 25 years our biggest market- the US, has been friendly and seemingly endless. Yes, we had the odd bump in the road, but for the most part not much changed on the ranch. Fast forward to today—no longer is the US a friendly market. If the politically motivated market closures during BSE and the countervail duties were shots across our bow—Country of Origin Labeling is now a direct hit. COOL will effectively make Canadian commodity beef unprofitable to produce for the US market. The only thing that has prevented a collapse of our beef markets is the correction in the US $ back to $.80. I hate to think about our situation if the dollar were near par- But ---please note I said commodity beef was affected by COOL—small opportunities do exist in the food service industry not affected by COOL. You see COOL could have some long term good for Canada. The west coast restaurants in the US who loved the first-class marbled beef we are famous for, will now know where it actually comes from. In addition the fact that identifying Canadian beef in the grocery stores may pay some long term dividends. A superior product for less money is just what the distressed consumer in the US is looking for. But,-- trust me folks, we will not succeed in the price game!

Pause- So what can we really do about it--? Last summer our minister Groeneveld took a bold step and introduced “Alberta Livestock Meat Strategy” -a number of serious changes in the way the beef industry does business. You remember last year I spoke of the process where the minister had invited ALL beef groups around the table to put their best ideas forward—from those roundtables and submissions ALMS was developed. In the months that followed that announcement, we heard everything from a luke warm acceptance to down right hostility from our fellow producers. We should not be surprised. This industry has evolved very little since the eighties. ---why ??? So maybe we need to think out of the box or shall I say, develop our tool box. You see- each component of the ALMS will become tools to be used in the future for the betterment of the industry. If we really want to be in control and ready for what ever we are dealt, we better equip ourselves with the best tool box available. For example; That 5 star hotel must maintain their rating by constantly upgrading all aspects of their business; that master electrician has more than a multi headed screw driver and a set of pliers. They have to have the latest tools to be competitive and are constantly upgrading. Perhaps the cattle industry has to pick up the challenge and fill a tool box with everything that an exporting country might ever require. So when we find an opportunity to export some beef, we are prepared. Instead of complaining that the requirements are too tough, or costly, or it’s too much of a burden, the requirements are covered! We can offer the customer what he wants---What a novel concept! This all starts with a modest effort to age verify our calves—why is that so controversial?? The market has been asking for and paying for age verified calves for 3 years, yet packers could not fill Japanese demand for under 20 month beef. What is really troubling is even with the AFRP 2 payments made last year to cattle producers, 80% of the calves are age verified. 20% are not—Are we really ready to change our business?? What will happen next year-- Are we really serious about saving this industry and making our livelihoods from beef production in the future,???

Our future lies in aggressive marketing—marketing to high value markets. Opportunity exists in high value food service business all over the world as well as other specialized markets. Alberta Livestock Meat Agency has been tasked with finding those markets. Successful people have been appointed to Alberta Livestock Meat Agency to help this industry find the buyers we desperately need. We are now encouraged by the Federal Government with the recent announcement of the new Agricultural Products Trade Secretariat. This new initiative will work to rebuild access to markets we need. Unfortunately we should have begun this process years ago, --but we cannot change the past –only the future. As we evolve, we will learn from our mistakes, adjust and move forward. The future of the industry lies in evolving—whether we are kicking and screaming or progressively moving forward. The choice is yours- Pause— A Charles Darwin quote I used last year sums it up: “It is not the strongest who survives, nor the most intelligent, but the species most responsive to change survives”. Thousands of years of evolution have proven this theory. Fellow members we are in muddy waters with this industry of ours. Will all of the things I talked about make us profitable?? Will it provide immediate financial relief?? I cannot answer that, but will tell you it is better than doing nothing. We are building our tool box and will be taking these new tools to the world. Just don’t put that toolbox in the back of the truck along with rusty wire baler twine and forget about it. We are going to need it!! Failure is not an option—the Canadian beef industry is just too important!

Feeder Associations Loan Guarantee Program

Update - Program Enhancements

Harvey Donahue&

Dale Engstrom


Changes require amendments to the

• Act - by the Legislature• Regulation – by Cabinet

A very formal, structured process.


• New Act will be introduced in the Spring Session of the Legislature – will “enable” changes to the regulation.

• New Regulations will be presented to Cabinet in late summer (Aug or September)


• New Act will be open to thepublic after first reading in the Legislature

• Press Release at that time


The program is a partnership between:

• Feeder Associations – local and provincial

• Lenders – a number of them

• Government of Alberta – 3 Ministries


Process/Timeline - to date

• Alberta Ag/AFSC Staff – Brain Storming – Mar ’07

• FAA Board Workshop – December ’07

• Regulatory Working Group – Feb ’08 ******

• Stakeholder Discussion Document – August ’08

• Legislative Counsel – Nov ’08 – Jan ‘09


Process/Timeline – going forward

• Alberta Legislature – New Act - June ’09

• Develop New Regulations – Feb-June ’09

• Alberta Cabinet - New Regs Approved (Oct ’09 ?)

• Program Changes Completed


Program **Options** Being Considered

• Equity Draws – 2 forms

• Corporate and Partnership members

• Loan Limits – always under discussion


Program Options Being Considered

• Dropping brand Inspection on self- purchases

• Alternatives to branding

• Supply Chain Financing – “meat in the box”


Administrative Updates

• Clarity around “ownership”

• Requirements of lenders

• Ministers’ Roles

• Powers and functions of Inspectors


Administrative Updates

• Member requirements

• FOIPP – information use and disclosure

• Management of assurance accounts


Items Requiring More Work

• Out of Province Feeding– legally complicated

• PPSA - Personal Property Security Act


No program changes until new regulations

are passed by Cabinet – October 2009 at

the earliest.

“Business as Usual”


Harvey Donahue&

Dale Engstrom

Questions ?

FAMS V2.0 (Feeder Association Management System)

Goal – a new record and business management system that will meet the needs of local associations, ARD, and other key stakeholders.

FAMS V2.0 (Feeder Association Management System)

• Phase 1 – high level needs analysisand project plan

• Consultant interviews with 13 association staff membersduring AGM

• Additional staff input sessions will follow.

Projects with the Board

• Staff Training Needs- Jim & Harvey

• Marketing the Program - Dale

• Meat Value Chain Financing- Ted

Staff Training Needs

• identify skills and abilities

• scope out learning options

• input from Local Assoc. Staff

Marketing the Program

• Trade Show Display – 4 events

• Posters *• Brochure *

• What will work for you?

Meat Value Chain Financing

Question – What would it take toextend the program from slaughterof the animal, through to the sale of the meat, to support producer driven supply chains?


• Steering Committee • Producer Driven Supply Chain

(Diamond Willow Organic Beef)• Renewal Program Funding• Meat Industry Consultant


Interviews

• 5 Local Associations

• Provincial Supervisor and staff

• 2 existing supply chains

• 3 lenders


• Report Completed

• Next step - Policy discussions and a decision required

• Develop regulations and procedures if required

Projects with the Board

• Staff Training Needs – Jim & Harvey

• Marketing the Program - Dale

• Meat Value Chain Financing - Ted

Questions?

Feeder Association Annual Meeting

January 30, 2009

Provincial Activity

• 2007/2008 numbers – 375,000 head for $216 million.

• This is up about 20,000 head from the previous year.

• Currently the purchases are running 12% down from last year.

• September to November 2008 - 150,000 cattle purchased for $86 million ($574/head average).

Brand Inspection

• All self-purchases and private treaty purchases must be brand inspected by L.I.S. prior to being financed by the association. This is part of the process in ensuring that the association gets clear title to those cattle.

• Even though a resolution was passed at last year’s AGM. the legislation has not changed and this issue is currently in with the Regulatory Working Group.

MEMBER RESPONSIBILITIES

• Members must brand their cattle promptly so that the supervisor can inspect them and the seller can be paid. The new LICA legislation requires prompt payment which is defined as 2 days after price discovery or possession whichever is later.

• Members must also notify the supervisor if they intend on moving the cattle to another location.

• Purchase and sales documentation must be provided to the Secretary-Treasurer prior to paying for the cattle or for issuing a surplus cheque to the member.

Support Response TeamUpdates• A new “support response team” which

includes the Provincial Supervisor, ARD staff, a Provincial Board Member, local Board members, and lenders with advice from anyone with other expertise required.

• Activated when an association may be facing a problem of severe financial consequences.

• Will keep “hard won knowledge” for the benefit of all associations and the program as a whole.

PROCEDURE A request for assistance will come from the local association, Provincial Board or any other interested party.1) Any member of the Response Team may be the

initial contact; however, the Provincial Supervisor will be the lead.

2) Once the Provincial Supervisor has been informed of a problem he will immediately contact the rest of the team members and set up a conference call or meeting to discuss the details of the problem and how best to proceed.

3) The Provincial Supervisor will open an Agridam file.

4) Immediately after the conference call or meeting, the association in question will be contacted and informed what the team determined to be the best course of action.

5) The Team and the association will remain in contact with each other throughout the process.

6) The Team will maintain records of all communications between the team and all others involved and from within the group.

7. Ensure that as all updates to the issue arise, that all parties involved are kept up to date either by conference calls or via an electronic means.

8. Once the problem has been concluded or it enters the legal system for final resolution, a meeting or conference call will be undertaken with all parties for debriefing. Discussion will also take place to determine if there are possible ways to prevent this problem from occurring in the future.

GUARANTEE ALLOCATION

Every association’s usage will be reviewed annually by the Provincial Board and Provincial Supervisor.

The timeframe will be the past 30 months. If the utilization is below 70% this will trigger

further review and may cause the guarantee to that association to be reduced.

Associations will be notified prior to any reduction with the opportunity to respond if they feel a reduction is not called for.

PROCEDURE:Annual Review:

After the May bank statements have all been sent to the Red Deer office, RSD staff will review each association’s lending activity over the previous 30 months to determine their highest level of lending.

Each association should have utilized at least 70% of their guarantee allotment during the 30 months.

This maximum level of lending in the 30 month period will be used to calculate the new maximum guarantee allotment that an association can have. Use the following formula to calculate the new guarantee allotment:

maximum lending activity X 15%

70% = new guarantee allotment

Or

maximum lending activity X 0.15

0.80 = new guarantee allotment

• Note: The guarantee allotment is used to guarantee 15% of the total loan to the associations by the financial institutions.

• Note: It is expected that each association will utilize at least 70% of their guarantee allotment.

Example:

• 1,500,000 guarantee allotment

• 10,000,000 loan limit from the bank

• 6,000,000 maximum outstanding loans

• therefore: $6,000,000 X 15%

70% = $1,285,714 ( rounded up to $1,286,000)

• and at 15% ; $1,286,000

15% = $8,573,333

• still allowing for a $2,573,000 increase in business.

• A utilization report for all of the associations will be made to the Provincial Supervisor for review. The Provincial Supervisor will present the report to the Provincial Board for discussion.

• Once any association has been identified as under utilizing their allotted guarantee, the Provincial Supervisor will send each association a letter informing them of the forthcoming change in their guarantee. This letter will be copied to the Zone Director responsible for the association. The association will then have 30 days from the date the letter was sent to reply to the Provincial Supervisor.

• For those Associations that require an adjustment, the Provincial Supervisor will prepare an amending letter indicating the new guarantee allotment.

• The letter indicating the amended guarantee allocation will be forwarded to the Association for their signature and to obtain the lenders signature.

• When both the lending institution and the Association have signed the letter, it is to be returned to the Provincial Supervisor who will forward the letter to the Director of Regulatory Services Division for final approval.

• The Director will sign and return three copies of the amending letter to the Provincial Supervisor.

• The Provincial Supervisor will keep one copy and send two copies to the association. The association will be requested to deliver one copy to their lender.

• The Provincial Supervisor will send a copy to Alberta Finance for their review.

Overdue Accounts• Overdue account

16(1) For the purposes of this section, “overdue account” means an account that has not been paid by the due date or for which the inventory of livestock on hand is less than what the records of the feeder association indicate.

• 16(2) A feeder association shall apply funds from the assurance account to overdue accounts pursuant to section 15(b) unless the Provincial Supervisor authorizes a feeder association to carry an overdue account with a lender in respect of any feeder agreement.

Overdue Accounts (Page 36 - Manual of Directives and Procedures)

• Boards will address overdue accounts as quickly as possible. The member’s accounts should be inspected to ensure sufficient livestock and equity exists in the livestock and to determine the reason for the overdue account.

• If insufficient equity exists and/or if the account is overdue, the member is in default. The member must declare in writing his indebtedness to the association.

• The board must first use the member’s security deposits against the outstanding balance. The member is responsible for repayment of shortfall and subject to suspension.

• Boards will have a system in place to identify potential overdue accounts prior to them becoming overdue.

• When a potential overdue account is identified boards will deal with each case on its personal and individual merits.

• Should a board wish to carry the overdue account the board will make a recommendation in writing to the Provincial Supervisor requesting authority to carry that overdue account. This should be done prior to the account becoming overdue.

• Attached to this recommendation will be a written plan from the member and approved by the board outlining how and when the overdue account will be paid.

• The Provincial Supervisor may authorize in writing the carrying of the overdue account based on the local board’s recommendation.

• If a balance remains, the pooled security deposits must be used and the association must reduce each member’s account on a pro-rata basis. Membership must be given written notice of any reduction in their security deposits.

• A record of reduction to individual members must be maintained so that those members can be refunded if the delinquent account is ever collected.

• New contracts cannot be issued to help pay off a previous shortfall, or removal of equity commonly referred to as ‘rolling a contract’.

Shortfall Procedures (Page 37 - Manual of Directives and Procedures)

In the case where a member’s account becomes overdue and all animals relating to the contract have been sold, it is imperative to take action immediately to prevent jeopardizing other feeder members’ accounts.

The Assurance Account will be frozen immediately. No withdrawals will be permitted until a member’s overdue account is settled.

The board must have the member sign an acknowledgment that he/she owes a debt to the Feeder Association. The board may wish to work with the member to determine if the member will be able to payout the debt on their own.

If the member is unable to pay off the outstanding balance, the member’s security deposit will be applied to the debt. If the member is part of a group account, the security deposit for the group account will also be debited.

It is essential to determine which additional contracts and accounts will be affected (group accounts, additional family members, custom feeders).

The association should undertake an inventory inspection.

It may be necessary to pro-rate the pooled security deposits to cover the residual debt. If a board chooses to use other resources to minimize the debt owing on the contract, the board would then reduce the amount to be pro-rated from the security deposits - this is at the discretion of the board whether or not to do this. Membership must be given written notice of any reduction in their security deposits.

The association will lift the freeze on the assurance fund and the bank will transfer sufficient funds to drop the overdue account balance to zero. The difference between the defaulting member’s security deposit and the total is determined (X). This amount (X) is converted to a percentage of deposits (i.e. 15%). Every member with security deposits would then have 15% of their security deposit used to pay the debt.

Members are required to ‘top-up’ their security deposits when they want to finance animals again. For example, if a member’s $10,000 deposit is reduced to $8,500, the member must replenish the $1,500 for a $200,000 contract or borrow at the level that $8,500 will cover.

A record of reduction to individual members must be maintained so that those members can be refunded if the delinquent account is ever collected.

Future contracts of the defaulting member are at the discretion of the board, however the member may be suspended from the program for one year.

If any association is having a problem, please call your ARD Inspector or the Provincial Supervisor so that we can all quickly and effectively deal with it. This could be a financial problem or cattle that aren’t being properly cared for. ARD will help out in any way appropriate.

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Livestock Identification and Commerce Act

Feeder Associations of Alberta – January 2009

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LICA PRESENTATION

• OVERVIEW

• APPLICATION TO FEEDER ASSOCIATIONS

• FEEDER ASSOCIATIONS AS PURCHASERS

• MEMBERS SELLING LIVESTOCK

• SALES DOCUMENTATION

• BILL OF SALE

• LIVESTOCK SECURITY INTEREST DECLARATION

• OTHER SALE PROVISIONS

• PPSA

• LIVESTOCK MANIFEST

• LIVESTOCK PERMITS

• LIVESTOCK INSPECTION

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LICA – OVERVIEW

The Livestock Identification and Commerce Act received Royal Assent in May 2006, amended in December of 2007 and proclaimed in force January 1, 2009

The Livestock Identification and Commerce Act consolidates and modernizes provisions of the:

• Brand Act• Livestock Identification and Brand Inspection Act, and

• Livestock and Livestock Products Act

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APPLICATION TO FEEDER ASSOCIATIONS

LICA applies to feeder associations and members of feeder associations when:

• Feeder associations purchase livestock on behalf of their members; and

• Members sell livestock on behalf of their feeder association.

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FEEDER ASSOCIATION PURCHASES

When purchasing livestock on behalf of a member every feeder association must know the rules in LICA governing:

• Sales documentation,

• Livestock security interest declarations, and

• Prompt payment.

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MEMBERS SELLING LIVESTOCK

When selling livestock on behalf of a feeder association every member must know the rules in LICA with respect to:

• Sales documentation,

• Livestock security interest declarations, and

• Livestock manifests.

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SALES DOCUMENTATION

When a feeder association purchases livestock:

• from an auction market or a livestock dealer, the auction market or livestock dealer must prepare a settlement statement; or

• as a result of a private treaty sale or from a member of the feeder association (self purchase), the seller (member) must complete a bill of sale.

The format of the settlement statement or bill of sale is up to the seller or livestock dealer.

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SALES DOCUMENTATION

Content of bill of sale or settlement statement

Every bill of sale or settlement statement must contain the following information:

• the date of the sale transaction,• the names and addresses of the owner of the livestock and the purchaser,• a description of the livestock that includes the kind, colour and number of

head of livestock sold,• a description and the location of any brands on the livestock,• if the livestock is sold by weight, the weight of the livestock sold,• the purchase price, the deductions from the purchase price and the sale

proceeds, and• any other information required by the Minister

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BILL OF SALE

Note: Security Declaration

Note: Purchaser Signature

Provided with your new manifest book

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LIVESTOCK SECURITY INTEREST DECLARATION

Owner’s obligationThis declaration is provided:

• By: the owner of the livestock

• When: at or before the time the livestock is supplied or offered for sale

• To: the person who owes the sale proceeds to the owner of the livestock

This declaration can be provided:• as part of the livestock manifest, or

• as a stand-alone document

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Status of a feeder• When a feeder association purchases livestock from a

member, that member is the owner of the livestock and must provide the feeder association with a livestock security interest declaration.

• When a feeder sells livestock on behalf of the feeder association, the feeder is considered to be an “owner” for the purpose of completing the livestock security interest declaration.

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Form of the DeclarationA livestock security interest declaration however it must:• in writing and

• identify the owner of the livestock,

• identify the livestock being sold,

• disclose whether or not livestock or the dam of the livestock being sold is subject to a livestock security interest,

• if there is a livestock security interest, identify the name and address of the holder of the livestock security interest,

• if there is no livestock security interest, a statement that there is none,

• be dated, and

• be signed by the owner of the livestock (which includes a member of the feeder association and a borrower with a private lender or financial institution).

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Purchaser (feeder association) and dealer obligationsThe person who owes the sale proceeds to the owner of the livestock must:• Obtain the declaration from the owner before paying the sale

proceeds.

• If there is a livestock security interest in the livestock – pay the sale proceeds to the owner of the livestock and the holder of the livestock security interest.

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Payment of the sale proceedsWhen there is livestock security interest in the livestock or the dam

of the livestock, the sale proceeds are to be paid as follows:

• for livestock security interests held by a feeder association – to the feeder association on account of the member;

• for livestock security interests held by a private lender (i.e. FCC Alliance Partner, Viterra) – to the private lender on account of the borrower; and

• for livestock security interests held by a financial institution (i.e. bank, credit union, ATB etc) with whom the seller has a deposit account – to the

financial institution and the owner of the livestock.

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A stand-alone Livestock Security Interest Declaration form is provided at the back of the livestock manifest book

LIVESTOCK SECURITY INTEREST DECLARATIONOwner of the LivestockPen or Lot Number Date YYYY / MM / DD

Owner Name Phone #

Owner Address

Declaration Provided ToName

Address

Description of LivestockAV

Y/N

Y/N

Y/N

Livestock Security Interest Declaration

I CERTIFY THAT THIS DECLARATION IS TRUEX Signature of OwnerPerson Owing the Sale Proceeds to the Owner of the LivestockDate YYYY / MM / DD

Received by (Print name)

Date

KindColour Brand(s) / Identifier(s)

Loc. Other Information

Name and Address of Holder of Livestock Security Interest In the Livestockor in the Dam of the Livestock or if None Indicate "NONE"

Number

YYYY / MM / DD

Signature

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Benefits of a livestock security interest declarationLivestock security interest declarations benefit the livestock industry because they will:• require lenders to disclose what security is being registered against the

producer’s livestock

• require producers to know what security they have against their livestock

• enable purchasers to know if they are getting clear title to the livestock they are buying

• ensure that when livestock subject to a livestock security interest is sold that the lender will recover funds to payout the security

• protect purchasers and livestock dealers from potential conversion lawsuits

• create certainty in livestock sales transactions

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ConversionConversion is a civil wrong (tort) which involves the unauthorized assumption and exercise of the right of ownership over personal property to the exclusion of the owner’s rights.

In this tort, “owner” includes the holder of a security interest in the personal property. An owner, purchaser and livestock dealer can all be liable to a lender, in conversion, when livestock subject to a livestock security interest is sold without the lender being paid.

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OTHER SALE PROVISIONS

Prompt PaymentAny person who• purchases livestock, whether personally, as an agent or

through an agent, or

• sells livestock on behalf of the owner of the livestock or the owner’s agent

must pay the sale proceeds within 2 business days of price discovery or possession, whichever occurs later.

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Price Discovery

“price discovery” means the day on which the person who is required to pay the sale proceeds knows or ought to know the amount of the sale proceeds payable.

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Possession

“Possession” means:

• the day on which the livestock is delivered to the purchaser or the purchaser’s agent;

• the day on which the purchaser or the purchaser’s agent may take delivery of the livestock; or

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Possession (continued)

• if the sale of the livestock is subject to a condition and the livestock has not been rejected on the basis of that condition, 2 business days after

– the day on which the livestock is delivered to the purchaser or the purchaser’s agent; or

– the day on which the purchaser or the purchaser’s agent may take delivery of the livestock.

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Sale Proceeds

“sale proceeds” means the amount of money that represents the difference between

• the full purchase price paid or to be paid for the livestock or livestock products sold, and

• any expenses, sales commission, livestock inspection fee, service charge, levy or handling charge that is evidenced by a cheque, statement, invoice, promissory note or other memorandum issued in respect of the livestock or livestock products at the time of the sale;

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Pay“Pay” means,

• to deposit the purchase funds electronically,

• to send the purchase funds by postmarked mail,

• to deliver the purchase funds,

• to make the purchase funds available for pickup, or

• if there is no livestock security interest in the livestock or the dam of the livestock being sold, to sign a financing agreement with the owner of the livestock granting the owner a purchase- money security interest;

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PPSA

PPSA searches and registrationTo ensure that the feeder association has clear title to the livestock purchased on behalf of or from a member and to ensure payment of the promissory note it is a prudent for feeder associations to:• do a PPSA search prior to purchasing livestock on behalf of or

from a member; and

• register a financing agreement with PPSA to secure payment of the promissory note.

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LIVESTOCK MANIFEST

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LIVESTOCK MANIFEST

Use of the livestock manifestA livestock manifest is used to:

• transport cattle and sheep within Alberta

• transport horses within Alberta for sale or slaughter or to an inspection site

• inspect cattle transported to an inspection site on a livestock permit

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LIVESTOCK MANIFEST

Parts of the livestock manifestThe Alberta livestock manifest is divided into seven parts:

Part A - Purpose of the manifest

Part B - Transportation and Sale Details

- Description of the Livestock

Part C - Parts A and B Certification

Part D - Inspector

Part E - Transporter

Part F - Livestock Security Interest Declaration

Part G - Destination

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LIVESTOCK MANIFESTPart A - Purpose of the manifest

• Livestock manifests can be used for transport only or for transport for sale

• The box for “transport only” or one of the boxes for “transport for sale” must be checked off

• If a separate livestock security interest declaration is being provided the box on the second row of Part A must be checked off

• Part A of the livestock manifest may be completed by the owner or the owner’s agent

Part A - Purpose of Manifest Transport for Sale by

Check if Livestock Security Interest Declaration is by Separate Document

Dealer on Behalf of Owner

OwnerTransport

Only

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LIVESTOCK MANIFEST

Part B - Transportation and sale detailsPart B - Transportation and Sale DetailsPen or Lot Number Date YYYY / MM / DD

Owner or Dealer Name (Print Clearly & Press Hard) Phone #

Owner or Dealer Address

On Account Of

Pay To (If Other Than Owner) Address

Transport From Address Premises ID

Transport To Name

Transport To Address

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LIVESTOCK MANIFESTPart B - Transportation and sale detailsLivestock can only be transported in the name of

• the owner of the livestock, or

• a livestock dealer or livestock dealer’s agent acting on behalf of the owner

Feeder Association livestock are to be transported in the name of the feeder association on account of the member (whether they are being transported only or transported for sale)

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LIVESTOCK MANIFEST

Part B - Description of the livestockDescription of Livestock

AV

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

ColourBrand(s) /

Identifier(s)Loc. Other InformationKindNumber

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LIVESTOCK MANIFESTPart C - Parts A and B Certification

Part C must be signed by the owner of the livestock if the livestock manifest does not direct payment solely to the owner of the livestock.

If the sale proceeds are directed to be paid to solely to the owner of the livestock, Part C of the livestock manifest can be signed by the owner’s agent.

Total Part C - Parts A and B Certification I CERTIFY THAT PARTS A AND B ARE TRUE

X Signature of Owner or (if Permitted) Owner's Agent

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LIVESTOCK MANIFEST

Part C - Parts A and B CertificationA livestock dealer or a livestock dealer’s agent acting on behalf of the owner of the livestock may complete Part C if • the livestock manifest directs payment to the livestock dealer,

• the livestock dealer’s name appears in the second row of Part B, and

• the owner’s name appears in the “on account of” row

The feeder association member is an owner for the purpose of signing Part C of the livestock manifest.

Parts A, B and C must be completed before the livestock is transported.

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LIVESTOCK MANIFESTPart D – Inspector

The livestock inspector completes Part D of the livestock manifest whenever livestock are inspected

Part D - InspectorAdj Total Inspector Signature Inspector #

Inspection Site #

Client #

Assur. Fund # Eligible

Check-off # Eligible

Livestock Permit #

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LIVESTOCK MANIFEST

Part E - Transporter

The person transporting the livestock must complete Part E.

All of the boxes in Part E must be completed by the person transporting the livestock.

Part E - TransporterTransporter's Name (Print)

Transporter's Signature Phone #

Trailer or Conveyance License #

Trucking Charges

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LIVESTOCK MANIFESTPart F - Livestock Security Interest Declaration

• When livestock is transported for sale, the owner must complete, sign and date Part F unless the owner provides a completed livestock security interest declaration by a separate document

• If the livestock is transported for sale by a livestock dealer Part F is not completed as the owner is required to provide the declaration to the livestock dealer

• For feeder association livestock, the name of the feeder association is declared as the holder of the livestock security interest

Part F - Livestock Security Interest Declaration (If Sale by Owner)

I CERTIFY THAT THIS DECLARATION IS TRUE

X Signature of Owner

Name and Address of Holder of Livestock Security Interest In the Livestock

Date

YYYY / MM / DD

or in the Dam of the Livestock or if None Indicate "NONE"

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LIVESTOCK MANIFEST

Part G - Destination

The person receiving the livestock must complete Part G of the livestock manifest.

All of the boxes in Part G are to be completed by the person receiving the livestock before the livestock is inspected.

Part G - DestinationDate and Time Received Count Placed in Pen #

Received and Counted By: (Print Name) / Signature Premises ID YYYY / MM / DD Time

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LIVESTOCK PERMITS

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LIVESTOCK PERMITSExpiryA livestock permit expires on the earliest of the following:• 7 days from the date of issue• when the livestock is delivered to the livestock’s destination• or when an inspection of the livestock is required

Required• A livestock permit is mandatory for all livestock leaving an

Auction Market, Assembly Station and inspected Country Sale

Transition• The requirement for mandatory livestock permits for livestock

leaving designated inspection sites is January 31, 2009.

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LIVESTOCK INSPECTIONPurpose of inspection

The person in possession of the livestock must satisfy the inspector that that person is:

• the owner of the livestock or the owner’s agent,

• otherwise lawfully entitled to be in possession of the livestock, and

• in the case of the sale of the livestock, entitled to the sale proceeds.

The MOVEMENT of livestock to an inspection is now the trigger for inspection, NOT change of ownership

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LIVESTOCK INSPECTIONInspection feesThe fee for an inspection, other than an inspection for a special permit, is:• $1.00 per head of livestock, excluding horses, and

• $2.00 per horse

The minimum inspection fee is:• $20.00 for all inspections except a lifetime horse permit

• $30.00 a lifetime horse permit

Inspection Invoicing – “Through the Association”

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Thank you!!

Please contact your local LIS office or the Calgary office if you have additional questions

Ph (403) 509-2088

David Moss

Email: [email protected]

Adrienne Waller

Email: [email protected]

mailto:[email protected]

mailto:[email protected]

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