Chicken Farmers of Ontario New Chicken Farmer Entrant Program

Chicken Farmers of Ontario New Chicken Farmer Entrant Program
Questions and Answer Sheet
Program Questions
1. Why does CFO have a new entrant program?
 To help potential new farmers enter the Ontario chicken industry
2. Who is eligible for this program?
 Canadian citizens and permanent residents of Ontario
 Priority is to be given to persons who do not, currently or in the past, have a financial
interest or connection to the a supply-managed sector
3. My parent is a supply managed commodity farmer but I am applying on my own. Am I still
eligible to apply?
 Applications will be reviewed on the basis of several factors:
o Program eligibility
o Business plan and execution
o Demonstrated need to be in the program
o Farming knowledge and willingness to be in the industry
o Program commitment
o Other factors
4. How long is the program?
 A successful applicant should be committed to be in the program for 15 years
5. How many quota units will the successful applicant receive?
 The successful applicant is required to purchase at least 4,000 quota units and the CFO
Board will provide up to 10,000 quota units
 The goal is for the successful applicant to meet the minimum quota holdings requirement
of 14,000 units as per CFO regulations
6. How does the quota re-payment work?
 The successful applicant in the program is required to adhere to replacing quota that
Board cancels according to the following schedule:
o Years 1 to 5:
 Any supplemental basic quota units acquired will result in the immediate
cancellation of an equivalent amount of New Entrant Quota allotted;
o Years 6 to 10:
 Supplemental basic quota units may be acquired in an amount that is
less or equal to 30 percent of the amount of New Entrant Quota allotted;
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The acquisition of supplemental basic quota units in an amount that is in
excess of 30 percent of the amount of New Entrant Quota allotted will
result in a corresponding cancellation of an equivalent amount of New
Entrant Quota allotted;
Years 11 to 15:
 Supplemental basic quota units may be acquired in an amount that is
less or equal to 40 percent of the New Entrant Quota allotted;
 The acquisition of supplemental basic quota units in an amount that is in
excess of 40 percent of the amount of New Entrant Quota allotted will
result in a corresponding cancellation of an equivalent amount of New
Entrant Quota allotted.
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o
7. What circumstances will result in the New Entrant Quota being cancelled?
 The Board may cancel all or part of a New Entrant Quota prior to the expiry of the new
entrant term, for reasons including but not limited to:
o the New Entrant Farmer is found to have contravened regulations or policies of
the Board;
o the New Entrant Farmer has failed or refused to acquire an equivalent amount of
basic quota units to be fixed and allotted in conjunction with the cancellation of
New Entrant Quota; and
o the New Entrant Farmer requests early termination .
Application Process Questions
8. How do I apply?
 To apply, applicants can fill out the ion form posted on www.ontariochicken.ca and
provide a business plan
9. How much is the application fee?
 Non-refundable $250
10. How does the application process work?
 An Industry Panel, comprising of financial and farming experts will review and evaluate
applications and will make recommendations to the CFO Board of Directors for approval
and non-approval
 Successful applicants will have up to 18 months from approval to execute their business
plans
11. When will applicants be notified about whether or not their applications have been
approved?
 The CFO Board will review the Industry Panel recommendation at a Board meeting
scheduled in December. All applicants will be notified early in the following year.
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12. If I am unable to apply this year or my application is not successful, can I apply next year?
 Yes. If the eligibility requirements are still met applicants can apply as many times as
they wish.
General Questions
13. Where can I obtain information about the live price of chicken in Ontario?
 Live price updates are posted on www.ontariochicken.ca under the Farmer Resources
link
14. How much is quota and how do I purchase it?
 You are encouraged to speak to a chicken farmer or a local feed company salesperson to
gain an understanding of basic quota values and how to acquire it. CFO does not regulate
the price of quota which is bought and sold on the open market.
For more information please contact Sandy Roulston, Manager – Regulations and Standards at 289288-4257 or by email at [email protected]
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