If you have not received payment according the payment timeline, contact Agricorp immediately to notify the Director. Agricorp staff will work with you to make a claim to the Livestock Financial Protection Board, including sending you the required documentation to file a claim.
You must submit your claim within 30 business days after the first day on which the grounds for making the claim arose.
After you submit your claim forms, the Livestock Financial Protection Board will contact you with next steps.
Note: Claims are administered and adjudicated by the Livestock Financial Protection Board.
Financial protection for beef cattle producers and licensed dealers selling to licensed dealers
Beef cattle producers may be financially protected when they sell their beef cattle to a licensed dealer and that dealer does not meet their payment obligations. Licensed dealers that sell to other licensed dealers are also protected.
The Livestock Financial Protection Board can pay the seller 95% of any approved claim. In deciding whether to pay, the Board considers several factors, including whether:
- The sale was to a licensed dealer
- Proper notification procedures for non-payment were followed
- The claim was filed within 30 business days after the first day on which the grounds for making the claim arose
- The parties involved agreed to alternate payment timelines (i.e., extended the time to pay)
- The seller did not pay the fee or made an arrangement with the dealer to evade the payment of the fees
- The seller had reason to believe that the dealer: ceased to carry on business, filed for Bankruptcy or had their assets placed in the hands of a trustee or receiver for distribution and did not promptly notify the Director
- The agreement complies with the regulation
- The seller failed to deposit the payment within five business days and the deposit was declined or failed
Financial protection for licensed dealers selling to producers
If a licensed dealer sells beef cattle to a producer and the producer defaults on payment, the licensed dealer can file a claim. The Livestock Financial Protection Board can pay the seller 95% of the portion of the claim that it determines to be valid or $320,000, whichever is less. No compensation is provided for a claim that is $5,000 or less. In deciding whether to pay, the Board considers several factors including, but not limited to:
- Proper notification procedures for non-payment were followed
- If the claim was filed no later than 30 business days after the first day on which the grounds for making the claim arose
- The parties involved agreed to alternate payment timelines (i.e., extended the time to pay)
- The seller did not pay the fee or made an arrangement with the dealer to evade the payment of the fees
- The seller had reason to believe that the dealer: ceased to carry on business, filed for Bankruptcy, or had their assets placed in the hands of a trustee or receiver for distribution, and did not promptly notify the Director
- The seller agreement complies with the regulation
Financial protection for licensed dealers selling to co-operatives
If a licensed dealer sells beef cattle to a feeder or breeder co-operative and the co-operative defaults on payment, the licensed dealer can file a claim. The Board can pay 95% of the portion of the claim that it determines to be valid. No compensation is provided for a claim that is $5,000 or less.
In deciding whether to pay, the Board considers several factors, including the grounds identified above relating to producers. Also, the claimant received payment from the co-operative in a form that must be deposited failed to deposit the payment by 2 p.m. on the 10th day following the day of the sale and the deposit is declined or fails.
