Check-Off

Regulation 54 of the Beef Cattle Marketing Act states that by law, every cattle seller has an obligation to pay the $5.50/head check-off. Breeding stock, cull dairy cows and beef calves are included. Exemptions only exist for:
a. cattle sold for the production of milk
b. cattle sold for the production of veal
c. cattle that are owned by a person who does not reside in Ontario

No. The $5.50/head check-off is payable whenever cattle are sold, subject to the exemptions cited above.

Both the buyer and seller are responsible for collecting check-off. Regulation 54 of the Beef Cattle Marketing Act requires that auction market operators, packing plant operators and livestock dealers deduct the $5.50/head check-off from the proceeds payable to cattle sellers and remit them to Beef Farmers of Ontario (BFO). If cattle are sold by private treaty, the seller is responsible for remitting the $5.50/head check-off on cattle sold.

In the vast majority of cattle transactions, it is the responsibility of the buyer to deduct the $5.50/head check-off from the proceeds payable to the cattle seller. Firms which deduct check-off are required to remit the fees to BFO by the 15th day of the following month. A seller must remit the check-off accruing from private treaty transactions directly to BFO by the 15th day of the following month with a statement showing their name and complete address, and the number of head sold.

Yes, check-off fees are subject to 13% HST.

Yes. Every province in Canada has a prescribed check-off rate. The buyer of the cattle is required to deduct and remit check-off in the amount regulated by the province in which the seller resides.

Yes. The buyer of the cattle is required to deduct and remit check-off in the amount of $5.50 per head regulated by Ontario's Beef Cattle Marketing Act.

Yes. To cover administrative costs, BFO will compensate auction market operators, packing plant operators and livestock dealers for deducting and submitting BFO check-off along with providing the names and addresses of the sellers.

If the monthly remittance before HST is:
1) Less than $200, the commission is $15
2) $200 or over and less than $1,000, the commission is $35
3) $1,000 or over, the commission is three cents per head, minimum $70.

No, BFO does not provide a reporting commission on private treaty sales.

The Seven Day Dealer Exemption applies to a livestock dealer who sells cattle within seven business days of having purchased them. The livestock dealer may apply to BFO for a rebate with proper documentation.

By law, the Beef Cattle Marketing Act requires that on or before the 15th day of each month the livestock dealer must provide a statement to BFO that indicates the number of head of cattle sold within seven business days of having purchased the cattle. The livestock dealer must also provide the date on which the cattle were purchased and sold, the class of cattle and the name of the purchaser.

By law, the Beef Cattle Marketing Act requires that on or before the 15th day of each month that every person who deducts check-off must forward a statement to BFO showing their full name, address, postal code and telephone number. It also requires the full name, address and postal code of each seller to be forwarded to BFO.

This information populates the BFO membership listing and provides a means to communicate with our membership on important industry issues or in the case of an emergency situation.

BFO is committed to protecting the privacy and security of our members' personal information in compliance with the Personal Information Protection and Electronic Documents Act (PIPEDA).

Personal information collected by BFO is used solely for the purposes of conducting the business of the association. We do not share personal information with organizations not part of BFO’s normal business practice without membership consent. BFO will only share non-public personal information in the following manner:

• In an emergency such as a disease outbreak, up-to-date membership lists may be provided to the Canadian Food Inspection Agency and/or other appropriate regulatory authorities.
• With a party representing you, such as your accountant, farm business advisor, feed company representative, veterinarian, lawyer or other third parties, with your written consent.
• When permitted or required by law, such as in response to a subpoena or other legal process.
• Under circumstances where disclosure of personal information may be justified or permitted under a legal duty or right, BFO will not disclose more information than is required.

Check-off dollars are very important and valued by the organization. The provincial portion of the check-off ($4.50) remains in possession of BFO to fund programs and activities, support the Ontario Beef Market Development program, and to maintain daily operations. The remaining portion of the check-off ($1.00) is a mandatory national levy collected to fund research and marketing activities on behalf of the entire industry. The goal of the national check-off is two-fold: i) to increase sales of domestic and export beef; and ii) to find better and more efficient methods of producing beef and beef cattle.

BFO is actively engaged in a range of issues and supports its membership in the following ways:

• Proactive policy monitoring and analysis of issues related to the beef and broader agri-food industry
• Support, dissemination and extension of beef research and development initiatives
• Advocacy activities in support of Ontario beef issues and priorities
• Market information and analysis
• Domestic and export market development
• Programs and initiatives that support:
  • producer engagement, education, and leadership
  • consumer and public engagement
  • industry development, sustainability, and growth
• Targeted and strategic communications through various mediums