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Check-off
(for further information on Check-off please
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There are many producers who would like to know exactly what their responsibilities are towards checkoff. Checkoff is the $3.00 collected per head of cattle sold that is remitted to the Ontario Cattlemen's Association. Revenue generated from checkoff is used towards such activities as:
promotion and marketing campaigns
- new product development
- government lobbying
- producer education
- industry awareness
- food safety
- consumer education
and many other activities related to the promotion of beef and veal.
Many producers are unclear as to when checkoff applies to their particular situation. For example, did you know that the dairy producer is responsible for remitting checkoff on the bull calves that they sell to veal producers? Because these calves are going into beef production and not milk production, they are subject to the checkoff, and therefore are obligated to remit checkoff to the OCA.
These are some of the most frequently asked questions from producers. The answers are derived directly from the Beef Cattle Marketing Act:
The Beef Cattle Marketing Act and regulations governing license fees (checkoff) goes into effect every time cattle are sold. Purebred sales and private treaty sales involving beef cattle, dairy cows for slaughter as well as bob calves and veal calves are subject to checkoff.
The regulation requires that auction market operators, packing plant operators and livestock dealers deduct $3.00 per head from sale proceeds and remit all money collected to the Ontario Cattlemen's Association (OCA). The SELLER is also responsible under the Act and must remit the $2.25 per head in a private treaty transaction or a transaction where the buyer fails to make the deduction.
Checkoff dollars must be remitted by the 15th of the month or quarter following sale. All sale transactions by market operators, packing plants, livestock dealers or producers are subject to audit to ensure compliance with the checkoff legislation. License Fee (checkoff) Deduction Remittance Report Forms and cheques should be mailed to the Ontario Cattleman's Association.
The liable person, upon conviction, is subject to a fine of up to $2,000.
Every cattle seller has an obligation to pay the $3.00/head checkoff. Cull dairy cows, bob calves and veal calves included. Exemptions exist only for:
- cattle sold in a public auction sale organized where all of the cattle being sold are for the production of milk
- cattle that are sold through a public auction sale in which all of the cattle sold or offered for sale are owned by the person on whose premises the public auction sale is held
- the seller does not reside in Ontario
No. The $3.00/head checkoff is payable whenever cattle are sold, subject to the exemptions cited above.
Both the buyer and seller are responsible. The regulation requires that auction market operators, packing plant operators and livestock dealers deduct the $3.00/head checkoff from the proceeds payable to cattle sellers. The seller is responsible for remitting the
$3.00/head checkoff on cattle sold by a means other than to an auction market, packing plant or livestock dealer - this includes cattle being sold for export or in instances where the buyer who is required to deduct the checkoff has failed to do so. In the vast majority of cattle transactions, it is the responsibility of the buyer to deduct the
$3.00/head checkoff from the proceeds payable to the cattle seller. Firms which deduct checkoff are required to remit the checkoff fees which they have deducted by the 15th day of the month or quarter following the date of transaction to the Ontario Cattlemen's Association (OCA). The OCA mails checkoff remittance forms to auction markets, packing plants and livestock dealers for this purpose. A seller may remit the checkoff on private treaty transactions directly to the Ontario Cattlemen's Association with a statement showing the name and address of the seller, and the number of head sold by the 15th of the month following the quarter in which the cattle were sold. If you have any questions, or wish to report non-compliance, please contact: |
