More on ‘mad cow’ compensation

The Canada-Ontario BSE Recovery Program for ruminants sold by Aug. 31 and slaughtered within 14 days expired Sept. 30, 2003.
The Canada-Ontario BSE Recovery Program (Set Aside), which compensated producers for holding eligible cattle out of the marketplace for a minimum of eight weeks, ended Sept. 5, 2003.
This program was followed by the Ontario BSE Recovery Initiative—Phase 3 (a). Slaughter component for feeder cattle on inventory as of May 20, 2003 and sold for slaughter before Oct. 4, 2003.
Applications had to be submitted by Oct. 31, 2003.
There is a non-slaughter component to the Phase 3 program. Known as the 2003 Advanced Ontario Agricultural Payment—BSE 3 (b)., it provides assistance to any producer of ruminant livestock that meets program criteria.
The 2003 Advanced Ontario Agricultural Payment will provide assistance to any producer of ruminant livestock (including but not limited to slaughter cattle, backgrounded cattle, calves, purebred beef and dairy cows, heifers, bulls, sheep, goats, buffalo, deer, elk, and llama) that meets the program criteria.
Each producer having met the program criteria will be provided an advanced payment equal to roughly 7.4 percent of their three-year average production margin.
To be eligible for an advanced payment, you must:
•have been actively farming in the 2003 tax year and had production and/or sales of ruminant livestock during that year;
•have claimed ruminant livestock sales to Canada Customs and Revenue Agency (CCRA) in at least one of the last three years (2000-02);
•have sales of ruminant livestock that comprised at least one-third of total farm sales over the last three years (2000-02);
•on average for the last three years, had a positive production margin, which is the difference between total farm sales and direct production costs; and
•generate a payment of at least $500.
Producers who participate in the NISA program, and meet program criteria, should have automatically received a payment by now. Any payment received under this program is an advance on eligible funding on a future federal/provincial cost-shared program.
Those who do not have a NISA account may file an application with the Ontario Farm Income Disaster Program. Forms are available via the Ministry of Agriculture and Food’s Web site by clicking on the BSE button or by contacting your agricultural representative.
The deadline to apply for a 2003 Advance Ontario Agricultural Payment is Dec. 31, 2003.
If you do not have a NISA account, it is still possible to open one for the 2002 tax year. Some penalties apply, however these normally are offset by the federal and provincial contributions.
Application forms are available from Canada Customs and Revenue Agency or your accountant.

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