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(Consolidated up to 218/2008)
ALBERTA REGULATION 75/98
Feeder Associations Guarantee Act
FEEDER ASSOCIATIONS GUARANTEE REGULATION
Table of Contents
1 Definitions
2 Supervisor, secretary‑treasurer
3 Cattle brand
4 Accounting matters
5 Purchase prohibition
6 Use of loan
7 Purchase limits
8 Purchase conditions
9 Feeder agreement
10 Bill of sale
11 Purchase and sale of livestock
12 Notification
13 Deposit
14 Assurance account
15 Account funds
16 Overdue account
17 Association powers
18 Feeder cows
18.1 Custom feeding
19 Failure to comply
20 Repeal
21 Expiry
22 Coming into force
Schedule
Definitions
1 In this Regulation,
(a) “Act” means the Feeder Associations Guarantee Act;
(a.1) “due date” means, in respect of a feeder agreement, the date by which the livestock covered by that feeder agreement must, in accordance with the terms of the feeder agreement, be sold by the feeder on behalf of the feeder association;
(b) “farmer” means an individual
(i) who is an Alberta resident,
(ii) who is at least 18 years old, and
(iii) who owns or leases a farm in Alberta or is a shareholder of a corporation that owns or leases a farm in Alberta;
(c) “feeder” means a farmer who is a feeder association member;
(d) “feeder agreement” means the feeder agreement set out in the Schedule;
(e) “local supervisor” means a local supervisor appointed under section 2;
(f) “Provincial Supervisor” means an employee in the Department of Agriculture and Rural Development, who is designated by the Minister as the Feeder Associations Supervisor;
(g) “secretary‑treasurer” means a secretary‑treasurer appointed under section 2.
AR 75/98 s1;153/2000;245/2004;35/2007;68/2008
Supervisor, secretary‑treasurer
2(1) A feeder association shall appoint at least one local supervisor and a secretary‑treasurer prior to commencing business and shall ensure at all times that the association has a local supervisor and a secretary-treasurer.
(2) The appointments under subsection (1) are subject to the approval of the Provincial Supervisor.
AR 75/98 s2;245/2004
Cattle brand
3(1) A feeder association that purchases cattle shall
(a) obtain a registered cattle brand incorporating the character >_____< , known as a split‑end bar, and
(b) ensure that all cattle purchased by the feeder association are branded in a permanently legible manner with that brand.
(2) All cattle purchased by a feeder association must be inspected under the Livestock Identification and Commerce Act.
(3) Within 10 days after delivery of livestock to a feeder, the local supervisor shall
(a) inspect the livestock,
(b) ensure that all cattle are branded with the feeder association’s brand,
(c) ensure that all sheep are suitably identified,
(c.1) ensure that all hogs are suitably identified, and
(d) submit a verification of inspection to the secretary‑ treasurer.
AR 75/98 s3;245/2004;218/2008
Accounting matters
4(1) The secretary‑treasurer of a feeder association shall submit to the Provincial Supervisor
(a) a monthly statement of livestock purchases,
(b) a monthly statement of loans,
(c) a semi-annual deposit report, and
(d) a monthly detailed list of overdue accounts,
all in such form as the Provincial Supervisor may from time to time require.
(2) The books and records of a feeder association shall be available for inspection at all reasonable times by the Provincial Supervisor or an auditor appointed by the Minister.
(3) All signing authorities within a feeder association must be bonded for at least $75 000 or have in place similar security as approved by the Provincial Supervisor.
(4) The board of directors of a feeder association shall meet at least 4 times a year.
AR 75/98 s4;245/2004
Purchase prohibition
5 A feeder association shall not purchase livestock for a feeder who
(a) is indebted to any other feeder association that has received a guarantee under the Act unless the debt is in relation to livestock of a different species,
(b) in the opinion of the local supervisor, does not have suitable feed and facilities for livestock feeding,
(c) plans to feed in a custom feedlot unless the contract is authorized in accordance with section 18.1(1), or
(d) cannot be adequately supervised by the local supervisor.
AR 75/98 s5;153/2000;245/2004
Use of loan
6 A feeder association shall not use any portion of a guaranteed loan for a purpose other than the purchase of livestock for growing or finishing, or both, by its members.
Purchase limits
7(1) The total amount of cattle or sheep that a feeder association may purchase for a feeder is
(a) in the case of a feeder who has been a member of the feeder association for less than 6 months, $100 000, and
(b) in the case of a feeder who has been a member of the feeder association for 6 months or more, $300 000.
(1.1) The total amount of hogs that a feeder association may purchase for a feeder is
(a) in the case of a feeder who has been a member of the feeder association for less than 4 months, $100 000, and
(b) in the case of a feeder who has been a member of the feeder association for 4 months or more is $300 000.
(1.2) The total amount of livestock that a feeder association member may purchase for a feeder is a cumulative total of the total amounts per species set out on subsection (1) and (1.1).
(2) Notwithstanding this section, the board of directors of a feeder association may set lesser limits in respect of one or more feeders.
AR 75/98 s7;258/2001;245/2004;8/2005;188/2007
Purchase conditions
8 A feeder association may purchase livestock from a feeder to be fed by that feeder if
(a) the purchase price of the livestock does not exceed 100% of the value of the livestock estimated by the local supervisor at the time of purchase or, in the event that the livestock have been weighed and appraised by a qualified appraiser, does not exceed 100% of the appraised value,
(b) in the case of cattle, the cattle are branded in accordance with section 3 prior to payment of the purchase price to the feeder, and
(c) in the case of sheep or hogs, are identified in accordance with section 3 before payment of purchase price to the feeder.
AR 75/98 s8;153/2000;245/2004
Feeder agreement
9 A feeder association and a feeder shall enter into a feeder agreement for any livestock purchased by the feeder association for growing or finishing by the feeder with the proceeds of a guaranteed loan.
Bill of sale
10 A feeder association shall
(a) obtain a bill of sale or a vendor’s statement for all livestock purchased by it, and
(b) retain sales documentation for all livestock sold by it.
Purchase and sale of livestock
11 All livestock purchased by a feeder association with the proceeds of a guaranteed loan shall be
(a) held by the feeder association in trust for the feeder association and the feeder pursuant to the terms of the feeder agreement, and
(b) sold by the feeder on behalf of and in the name of the feeder association so that the entire sale proceeds are made payable to the feeder association.
Notification
12 A feeder shall notify the local supervisor prior to making any arrangements for the sale of any feeder association livestock on behalf of the association.
Deposit
13 A feeder shall at all times maintain on deposit with the feeder association an amount equal to at least 5% of the total amount borrowed by the feeder association to acquire livestock for the feeder pursuant to one or more feeder agreements between the feeder and the feeder association.
AR 75/98 s13;153/2000
Assurance account
14 A feeder association shall deposit the money collected pursuant to section 13 into an assurance account to help assure timely payment by the association of its debts with respect to the purchase of livestock.
Account funds
15 A feeder association
(a) shall maintain the assurance account as a separate account and shall not use that money for the general operation of the feeder association;
(b) shall apply from the assurance account sufficient money to repay any portion of its debts that are due to a lender and for which it does not otherwise have sufficient money to pay;
(c) shall, on applying money from the assurance account under clause (b), adjust pro rata the balance of each feeder’s deposit;
(d) shall, following any adjustments to deposits under clause (c), require each feeder to conform to section 13 on the next application for livestock;
(e) shall not return any portion of the assurance account to a feeder while the feeder association has any account payable by it that is due or overdue;
(f) may, subject to clauses (c) and (e), return the balance of the deposit to a feeder after 3 months from the date the feeder pays all amounts owing to the feeder association;
(g) shall, subject to clauses (c) and (e), return the balance of the deposit to a resigning or expelled feeder after 3 months from the date the feeder pays all amounts owing to the feeder association.
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.
(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.
AR 75/98 s16;153/2000;245/2004
Association powers
17(1) A feeder association may, at the request of a feeder, agree in writing to extend a due date, but the period of extension shall not be longer than 3 months beyond the original due date.
(2) Where a feeder has only one feeder agreement covering livestock purchased by a feeder association in respect of that feeder, the due date shall not exceed one year from the date on which the livestock were purchased.
(3) Where a feeder has more than one feeder agreement, the due date for each feeder agreement shall, subject to subsection (4), be within one year from the date on which the livestock were purchased under the first feeder agreement entered into.
(3.1) Repealed AR 245/2004 s10.
(4) If a feeder association, on request of a feeder, has entered more than one feeder agreement with the feeder,
(a) the feeder agreements, with respect to cattle and sheep, may provide for up to 2 due dates in total under all the feeder agreements, and
(b) the feeder agreements, with respect to hogs, may provide for up to 4 due dates in total under all the feeder agreements
but each feeder agreement may have only one due date and
(c) for the purposes of this section only, the feeder agreements with more than one due date must be treated as if they were feeder agreements with different feeders,
(d) the feeder must, before entering into feeder agreements with different due dates, advise the feeder association as to which due date applies to which livestock,
(e) the feeder must use
(i) different branding locations, or
(ii) the combination of the same branding location and the specific sex of the cattle
for cattle subject to different due dates and shall not attempt to substitute cattle subject to one due date with those subject to a different due date, and
(f) the feeder must ensure that the sheep and hogs subject to different due dates are suitably identified and shall not attempt to substitute sheep or hogs subject to one due date with those subject to a different due date.
AR 75/98 s17;153/2000;236/2002;245/2004;188/2007
Feeder cows
18(1) In this section, “cows” means female cattle over the age of 2 years.
(2) A feeder association may purchase feeder cows for a feeder only if
(a) the cows are intended for finishing only and are not intended for breeding or calving purposes, and
(b) the length of the agreement is 120 days or less.
Custom feeding
18.1(1) A feeder association may purchase livestock for a feeder to be custom fed only if the feeding contract between the member feeder and the custom feeder is approved by the local supervisor and on file with the secretary‑treasurer.
(2) A feeder association may, if a feeder has livestock in a custom feeding arrangement, cause the livestock to be sold at any time if the member feeder has an overdue account with the custom feeder.
AR 153/2000 s8;245/2004
Failure to comply
19 If a feeder does not comply with this Regulation, the Provincial Supervisor may order the feeder association not to purchase any further livestock in respect of that feeder for a period of 12 months from the date that the order is made.
Repeal
20 The Feeder Associations Guarantee Regulation (AR 301/87) is repealed.
Expiry
21 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on June 30, 2012.
AR 75/98 s21;63/2003;188/2007
Coming into force
22 This Regulation comes into force on April 1, 1998.
Schedule
Feeder Agreement and Promissory Note
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New Feeder □ Feeder more than 6 months □ |
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Name of feeder association |
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Name of feeder |
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Address of feeder association |
Address of feeder |
agree to the terms outlined below for the growing or finishing of the following livestock owned and held in trust by the feeder association for the purposes of this agreement.
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Brand |
Location of Brand |
Cost |
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Due Date |
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The feeder agrees to all of the following:
● to accept the livestock listed above for growing or finishing according to the by‑laws of the feeder association and the Feeder Associations Guarantee Act and Regulations;
● to feed the livestock and prepare them for market under the supervision of the feeder association;
● to keep the livestock healthy and to pay for proper veterinary service;
● to ensure the livestock are properly identified as feeder association livestock;
● to ensure that all livestock sale proceeds are paid to the feeder association;
● to deliver the livestock for sale (on behalf of the feeder association) by the due date;
● to indemnify the feeder association from any losses or legal claims arising in connection with the livestock;
● to give the feeder association, as security for performance of the feeder’s obligations under this agreement, a promissory note in the form and amount below;
● to keep the livestock, including hogs, in Alberta at:
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Qtr |
Sec |
Twp |
Rge |
W of |
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at a custom feedlot named |
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● to keep the hogs in Alberta at:
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Describe barn |
● if the livestock will be custom fed, to give the feeder association a copy of the contract for feeding signed with the custom feedlot.
The feeder association agrees to all of the following:
● to hold the livestock, and all proceeds received from sale of the livestock by the feeder association, in trust for the feeder and the association, as their respective interests appear from this agreement;
● to apply the net sale proceeds from the livestock first against the amount owing under the promissory note, and second, to pay the feeder any remaining balance of the sale proceeds.
The feeder association may retake possession of the livestock and sell the livestock if the feeder does not comply with any of the following:
● on the feeder agreement due date, pay any remaining balance on the promissory note;
● properly feed or care for the livestock;
● follow the by‑laws of the feeder association;
● follow the Feeder Associations Guarantee Act and Regulations.
The feeder agrees that, if the feeder association judges that the feeder is in breach of this agreement, the feeder association may enter the land where the livestock are located and retake possession of, remove and sell the livestock.
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Signature for feeder association |
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Signature of feeder |
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Signature for feeder association |
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Signature of co‑signer (when applicable) |
Promissory Note
I (we, if co‑signed) promise to pay, on demand, to the feeder association the principal amount of $ plus interest on the principal amount, from today, at the rate of % per year, both before and after demand.
“Prime,” if used in this promissory note, means the rate from time to time announced by (name of bank) .
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Signature of witness |
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Signature of feeder |
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Date |
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Signature of co‑signer (when applicable) |
AR 75/98 Sched.;245/2004
