ontario regulation 86/26

made under the

Protecting Farmers from Non-Payment Act (Regulating Agricultural Product Dealers and Storage Operators), 2023

Made: March 27, 2026
Filed: March 30, 2026
Published on e-Laws: March 31, 2026
Published in The Ontario Gazette: April 18, 2026

Amending O. Reg. 378/25

(BEEF CATTLE)

1. Section 1 of Ontario Regulation 378/25 is amended by adding the following definitions:

“beef cattle agent”, in respect of a dealer, means an individual whom the dealer allows to use the dealer’s licence in accordance with subsection 5 (3) of the Act; (“mandataire en matière de bovins de boucherie”)

“Financial Security Analysis document” means the document entitled “Financial Security Analysis for the Beef Cattle Financial Protection Program”, dated March 24, 2026, published by AgriCorp and available on AgriCorp’s website. (“document Analyse de la sécurité financière”)

2. Section 9 of the Regulation is revoked and the following substituted:

Application for dealer’s licence or renewal

9. (1) A person may apply for a dealer’s licence or the renewal of a dealer’s licence by submitting a completed application in accordance with this section.

(2) The application shall be in a form provided by the Director and shall include,

(a) information about the applicant’s business structure and their business name, operating name and business number;

(b) if the applicant is a corporation, the names of its shareholders;

(c) if the applicant is a partnership other than a limited partnership, the names of the partners;

(d) if the applicant is a limited partnership, the names of the general partners;

(e) the applicant’s mailing address and contact information for any individuals with signing authority;

(f) the category of dealer’s licence being applied for;

(g) the applicant’s licence number, in the case of an application for renewal;

(h) if the applicant is a new applicant, the applicant’s projected cattle purchases and sales over the term of the licence;

(i) the applicant’s total cattle purchases and sales, if any, in the previous fiscal year; and

(j) the name of any individual who is proposed to be a beef cattle agent for the applicant.

(3) The applicant shall provide the following supporting documents:

1. If the applicant is a corporation:

i. Financial statements from the corporation’s previous fiscal year, accompanied by a compilation engagement report, a review engagement report or an audit opinion prepared by a public accountant licensed under the Public Accounting Act, 2004.

ii. An up-to-date corporate profile report, if the applicant is a new applicant or if there have been changes to the corporate profile in the case of an applicant for renewal.

2. If the applicant is not a corporation, a statement of the applicant’s tangible net worth and the applicant’s most recent income tax return with the applicant’s social insurance number removed.

(4) Despite subsection (3), an applicant is not required to submit the supporting documents described in subparagraph 1 i or paragraph 2 of that subsection, as applicable, if the applicant agrees to provide security to the Director in the amount determined under section 9.2.

(5) The Director may request that an applicant provide information in addition to the documents required under subsection (3) if the additional information is reasonably required to allow the Director to conduct the financial security analysis required under section 9.2.

(6) The fees for an application under this section are:

1. $150 per application.

2. An additional $50 for each proposed beef cattle agent.

(7) The deadline for applying for a renewal of a dealer’s licence is 30 days before the licence expires.

Unsuitability, disentitlement — licence and renewal

9.1 (1) The following circumstances are prescribed for the purposes of clauses 56 (1) (e) and 57 (4) (e) of the Act:

1. The applicant previously held a dealer’s licence that was revoked.

2. The applicant or any officer, director or representative of the applicant or any other person having effective control of the applicant’s operations has been found guilty of an offence under the Act or the Livestock and Livestock Products Act.

(2) The following grounds are prescribed for the purposes of clauses 56 (1) (f) and 57 (4) (f) of the Act:

1. The applicant has filed a notice of intention to file or a proposal under the Bankruptcy and Insolvency Act (Canada) or has had all or part of their assets placed in the hands of a trustee for distribution under that Act.

2. A monitor has been appointed under the Companies’ Creditors Arrangement Act (Canada) in respect of the applicant.

3. A receiver or receiver-manager has been appointed in respect of some or all of the applicant’s assets.

4. The applicant has made an application under the Farm Debt Mediation Act (Canada).

5. The applicant fails to provide security as required under this Regulation.

Grounds to be considered — financial security analysis

9.2 (1) Before issuing or renewing a dealer’s licence, the Director shall conduct an analysis of the applicant’s financial security by applying the scoring methods set out in the Financial Security Analysis document.

(2) Subsection (1) applies with respect to each applicant unless,

(a) the applicant agrees to provide security to the Director under subsection 9 (4); or

(b) the applicant is a new applicant who does not provide the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable.

Requirement to provide security

9.3 (1) The Director shall require the following applicants for a dealer’s licence to provide security:

1. An applicant who, as part of their application, did not submit the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable.

2. An applicant who fails to provide additional information requested under subsection 9 (5).

3. An applicant who receives a score under the Financial Security Analysis document of less than 50 points.

(2) The Director may require the following applicants for a dealer’s licence to provide security if the Director believes on reasonable grounds that the applicant may be unable to meet its financial obligations during the term of the licence:

1. An applicant who receives a score under the Financial Security Analysis document equal to or greater than 50 points and less than or equal to 60 points.

2. An applicant for whom the Director has fewer than three years of the financial information set out in the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable, as provided by the applicant in connection with the application or an application made in respect of the previous year.

(3) The Director shall not require security from an applicant who receives a score under the Financial Security Analysis document of more than 60 points.

Security—amount, payment

9.4 (1) The amount of security to be provided by a new applicant who does not provide the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), by an applicant who agrees to provide security or by an applicant from whom the Director requires security shall be determined in accordance with the Financial Security Analysis document.

(2) The applicant shall provide the amount to the Director in the form of,

(a) an irrevocable letter of credit issued by,

(i) a bank listed in Schedule I or II to the Bank Act (Canada),

(ii) a credit union to which the Credit Unions and Caisses Populaires Act, 2020 applies, or

(iii) a trust corporation registered under the Loan and Trust Corporations Act; or

(b) a bond issued by an insurance company licensed under the Insurance Act.

(3) The security must be valid until at least the end of the third month after the expiry of the licence in respect of which the security is provided.

Small dealer exemption

9.5 (1) An applicant for renewal of a dealer’s licence who satisfies the conditions in subsection (2) is exempt from,

(a) the requirement to provide the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable;

(b) the financial security analysis required under section 9.2; and

(c) the requirement to pay security under section 9.3.

(2) The conditions referred to in subsection (1) are the following:

1. The applicant’s purchases of beef cattle in each week of the term of their current licence do not exceed $5,000.

2. The applicant provides, as part of their application, a signed declaration that their purchases of beef cattle in each week of the term of their renewed licence will not exceed $5,000.

(3) Clause (1) (c) does not apply if,

(a) the licensed dealer has failed to make payment as required under the Act;

(b) during the term of their previous dealer’s licence, the licensed dealer was found guilty of a Type A offence;

(c) during the term of their previous dealer’s licence, a compliance order was issued to the licensed dealer under subsection 67 (2) of the Act with respect to a provision mentioned in any of paragraphs 1 to 7 of subsection 108 (1) of the Act;

(d) during the term of their previous dealer’s licence, an administrative penalty related to any of paragraphs 1 to 7 of subsection 108 (1) of the Act was imposed on the licensed dealer under subsection 71 (3) of the Act; or

(e) during the term of their previous dealer’s licence, the licensed dealer has been found guilty of an offence under the Livestock and Livestock Products Act.

(4) Despite clause (1) (a), the Director may request that an applicant submit the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable, if more than 5 years have passed since the applicant last provided those documents.

Term, content of dealer’s licence

9.6 (1) A dealer’s licence expires at the end of the month that is six months after the last day of the dealer’s fiscal year in which the licence is issued or renewed.

(2) The licence must contain a licence number and its expiry date.

Conditions of dealer’s licence

9.7 Every dealer’s licence is subject to the following conditions:

1. The dealer shall notify the Director as soon as possible, in writing, of the following:

i. Any changes to the nature or form of ownership, or changes to the control over, the dealer’s business.

ii. Any changes to the dealer’s banking arrangements.

iii. Any material changes to the dealer’s financial position.

2. The dealer shall notify the Director as soon as possible, in writing, of any proposed additions to the proposed beef cattle agents for the dealer and shall pay an additional fee of $50 for each additional individual who is proposed to be a beef cattle agent for the dealer during the term of the licence.

3. Subsection 11 (3) of the Regulation is amended by adding the following paragraph:

3.1 If the dealer meets the description in subsection 9.5 (2), a notation indicating that the dealer is a small dealer.

4. The Regulation is amended by adding the following section:

Compliance orders — content

32.1 In addition to the information set out in subsection 67 (3) of the Act, a compliance order must include the following information:

1. A statement that an appeal to the Tribunal does not act as a stay of the order.

2. A statement that failure to comply with the requirements of the compliance order by the date indicated in the order constitutes a Type A offence and could lead to further compliance or enforcement actions.

3. A statement that an order made in English can be translated into French on request and an order made in French can be translated into English on request.

Commencement

5. This Regulation comes into force on the later of April 1, 2026 and the day this Regulation is filed.

Made by:
Pris par :

Le ministre de l'Agriculture, de l'Alimentation et de l'Agroentreprise,

Trevor Jones

Minister of Agriculture, Food and Agribusiness

Date made: March 27, 2026
Pris le : 27 mars 2026