OFA submitted comments on OMAFRA’s proposed changes to the Ministry of Agriculture, Food and Rural Affairs Act and Innkeepers Act to exempt cattle in the Feeder Cattle Loan Guarantee Program from the custom feeding provisions in the Innkeepers Act.
OFA is supportive of granting lenders, holding FCLGP-supported loans, a priority security position ahead of custom feeders who may rely on the Innkeepers Act provisions with respect to cattle enrolled in the Ontario FCLGP. However, we do not support the proposed amendment to exempt cattle enrolled in the FCLGP from section 3 of the Innkeepers Act. Such an exemption would prevent custom feeders from having any such lien on the cattle as well as preventing custom feeders from being able to seize and sell the cattle for unpaid services. Instead, we recommend that provisions in the Innkeepers Act continue to apply, albeit subordinate to lenders with respect to FCLGP-supported loans.
OFA maintains that it would be more appropriate to have a new section in the Farm Products Payment Act that sets out the possessory rights of unpaid custom livestock feeders and horse borders to hold animals until payment is received or to sell at public auction to recover payment.
OFA recommends that the key protections contained in the Innkeepers Act with respect to livestock and horses be transferred to the more appropriate Farm Products Payments Act.