Why does CFO have a new entrant program?
Chicken Farmers of Ontario created the New Entrant Chicken Farmer program to help potential new farmers enter the Ontario chicken industry.
Who is eligible for this program?
Canadian citizens and permanent residents of Ontario are eligible to apply for this program. Priority is to be given to persons who do not, currently or in the past, have a financial interest or connection to a supply-managed sector.
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:
Business plan and execution
Demonstrated need to be in the program
Farming knowledge and willingness to be in the industry
How long is the program?
A successful applicant should be committed to be in the program for 15 years.
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.
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:
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;
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;
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.
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:
the New Entrant Farmer is found to have contravened regulations or policies of the Board;
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
the New Entrant Farmer requests early termination.
How do I apply?
To apply, applicants can fill out the form posted on www.ontariochicken.ca and provide a business plan. Applications are due October 30, 2020.
How much is the application fee?
Non-refundable $250. Please remit it via on-line banking, using Chicken Farmers of Ontario account 9999.
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.
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. All applicants will be notified early in the following year.
If approved, may I grow chickens under programs such as the Raised Without Antibiotics (RWA) program?
Yes. Your business plan submitted should reflect your intent in participating is such a program and your related financial statements should incorporate this participation in the appropriate quota period in relations to your planned start-up quota period.
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.
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-Member Resources section.
How much is quota and how do I purchase it?
You are encouraged to speak to a chicken farmer 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.