Increasing Deadstock Capacity Initiative under the Canadian Agricultural Partnership (“The Partnership”) (AHDC-VR-A)

By
Jim Eadie
-

Guidelines

Overview

These Guidelines concern targeted cost-share funding support for deadstock management to address immediate and short-term deadstock capacity needs at businesses in Ontario through increasing capacity.

Target Audience

This initiative for Increasing Deadstock Capacity (“the Initiative”) targets livestock producers, other agri-businesses and municipalities that support planning, establishing, and/or managing deadstock to increase capacity for deadstock management.

Eligibility

  • Eligible Applicants include:
  • livestock producers
  • waste management facilities
  • municipalities
  • other Agri-Businesses, including:
    • Commingling Facilities
    • Livestock auction barns
    • Assembly yards
    • Transporters
    • Collectors
    • Renderers
    • Veterinary Clinics

In order to be eligible for funding under this Initiative, an Applicant must also:

  • be and remain in compliance with all Requirements of Law for the duration of the Project;
  • have a valid and up-to-date Premises Identification (PID) Number for the business location where their Project will take place;
  • provide a valid Farm Business Registration Number (FBRN) as part of the application process, if applicable;
  • provide a Canada Revenue Agency Business Number as part of the application process, if applicable;
  • be registered with Transfer Payment Ontario (and be registered to receive direct deposit payments through Supply Chain Ontario);
  • not have applied to the Processor and Other Business Intake (August 2021), the Producer and Other Business Intake (November 2021) and the Enhanced Biosecurity for African Swine Fever Preparedness Intake, for Projects that include the same eligible costs, or have withdrawn their application (and reapplied under this Initiative);
  • agree to be bound by the funding terms and conditions of the Initiative;
  • be capable of entering into a funding agreement with the Province of Ontario and meeting their obligations under it;

Applicants shall:

  • only access one funding source under the Partnership for their proposed Project. However, Applicants may access other government funding as long as those other programs also allow ‘stacking’ (i.e. receiving government support from multiple sources for the same Project) and the total assistance provided from all funding sources is not greater than 100 per cent of the total eligible costs. All funding for a Project, including from all additional sources, must be listed on the application;
  • only apply to one intake for Projects that include the same eligible costs; and
  • only submit one application per organization.

If approved, Applicants must not amend, vary, change or deviate from the Project described in their Application Form in any material way without first advising the Administrative Services Representative with the Rural Programs Branch at OMAFRA at AgRuralPrograms@ontario.ca. The Ministry reserves the right to suspend and recover funding for amended Projects that do not continue to meet the Partnership’s and the Initiative’s criteria.

Available Cost-share

  • 50 per cent of the verified eligible expenses incurred and paid, up to a maximum amount of $25,000 per Applicant.

Eligible Expenses

  • Eligible Applicants can incur expenses as of 12:01 a.m. (EST) on November 18, 2021, through to 11:59 p.m. (EST) on September 30, 2022.
  • End date for submitting eligible incurred and paid expenses is October 30, 2022, at 11:59 p.m. (EST).
  • Expenses must meet the requirements of the Ontario Regulation 105/09, under the Food Safety and Quality Act, 2001 (FSQA), and Ontario Regulation 106/09 under the Nutrient Management Act, 2002 (NMA), (or any other applicable requirements)) and be suitable for use. The undertaking of these activities for cost-share funding may still be subject to regulatory approvals:
Assessments and Planning
  • Qualified third-party services to provide an initial operational plan/ assessment related to the Applicant’s deadstock capacity (e.g., deadstock management plan, environmental plan/assessment)
Deadstock Facility Upgrades and Equipment

N.B. A site map must be submitted with the application for eligible expenses under this category and will be subject to evaluation for Project eligibility.

  • Establishment of an on-site facility to handle and store deadstock efficiently and securely as a preventive measure to reduce the risk of introduction and spread of disease to animals and humans, including, but not limited to:
    • Purchase, modification or construction of a deadstock management system (e.g., composter, digester, incinerator [subject to regulatory requirements and restrictions], in-ground vessel, waste management bins) and associated runoff management equipment/systems
      • Digester modifications or components that enable the taking of deadstock (e.g. pretreatment equipment)
    • New construction or modifications to structures or buildings to facilitate the handling, storage and removal of deadstock, or to securely store deadstock in a manner that prevents access or scavenging by wildlife and vermin
    • New freezer or cooler systems for the temporary storage of deadstock and parts thereof, or specific risk materials
Other Eligible Expenses
  • In-kind labour and equipment costs of up to $2,000 in cost-share
  • One-time, Project specific labour costs specifically required for the Project, such as contract salaries, benefits and specific per diem fees (excluding the costs of the Applicant’s existing full-time or part-time staff)
  • One-time costs for rental of facilities, equipment or machinery required specifically for the completion of the Project

Ineligible Expenses

Ineligible Expenses for this Initiative include, but are not limited to:

  • Expenses for which CAP Applicants can be paid are restricted by the terms of the CAP multilateral agreement (section 6.8); ineligible activities are:
    • Normal and ongoing operating and maintenance costs; and
    • Common items that can be used for multiple purposes and not exclusively for the approved Project’s purposes.
  • Expenses for modifications related to increasing production, health and safety requirements (e.g., composting of by-products or waste from processing)
  • Expenses for multipurpose items (e.g., tractors, pails, shovels, chains, backhoes, excavators)
  • Expenses for modifications and repairs as part of routine maintenance (e.g., replacing old surfaces with the same material; replacing or repairing doors, windows roofing, exterior walls, foundation, or fencing)
  • Any cost not set out as an eligible cost and expenditure in the Eligible Expenses above
  • Any cost not specifically required for the execution of a Project
  • Normal operating costs associated with carrying out or expanding a business’s current operations
  • Legal fees
  • Costs related to activities that promote Ontario products explicitly over those of another province or territory
  • Costs related to activities that directly influence or lobby any level of government
  • Costs of basic research
  • Costs of ongoing activities
  • Normal commercial expansion costs
  • Costs for rental of facilities, equipment or machinery for Projects under the assessment, audit, planning or skills development and training Project Categories
  • Costs of training and skills development that fulfill any academic requirements towards completion of a professional certificate, diploma or degree program
  • Costs of sponsorship of conferences and learning events or Initiatives
  • Costs of travel, meals and accommodations
  • Consultant and other contractor expenses for any hospitality (e.g., provision of food or beverage at events), incidental or food
  • Costs of permits and approvals
  • Costs of purchase or sale of land, buildings or facilities or associated taxes or fees (e.g., land transfer tax)
  • Costs for the lease of land, buildings and facilities for the purpose of starting up a new business or as part of normal operation
  • Fertilizer or crop protection costs
  • Costs of new building construction (unless otherwise specified in the Project Category Description)
  • Costs of typical farm equipment (e.g., tractors, skid steers, combines, livestock trailers) and related accessories or attachments (unless otherwise specified in the above Eligible Expenses)
  • Costs of tile drainage systems
  • Costs for production quota
  • Costs for crop storage facilities
  • Costs for mentoring or coaching services (unless otherwise specified in the Project Category Description)
  • Costs for Global Positioning Systems (GPS) and associated components
  • Costs for robotic milking systems, TMR mixers, feed pushers and automated feeding systems
  • Financing charges, loan interest payments, bank fees and charges
  • Any cost, including a tax, that is eligible for a rebate, credit or refund (e.g., a refundable portion of the Harmonized Sales Tax)
  • Costs of gifts and incentives
  • Costs of hand or power tools or attachments
  • Costs of maintenance or extended warranties
  • Costs of multi-use electronic items (e.g., items that can reach beyond the scope of the Project such as computers, printers, etc.)
  • Costs related to Ontario government promotional campaigns or branding
  • Costs of any capital item that is funded by government sources at 75 per cent or more
  • Expenses for goods and services that are not acquired through a transaction with a third-party that is:
    • Transparent, fair and promotes the best value for the money expended at competitive prices no greater than fair market value after deducting available discounts; and
    • At Arm’s Length from the business as determined within the criteria set out in section 251 of the Income Tax Act (Canada)
  • Deposits (prepayments) for which goods or services are not yet fully received

Application and Assessment Process

  • Completed application forms will be accepted and, subject to OMAFRA’s discretion, approved on a first come, first served basis from November 18, 2021 until January 31, 2022 at 11:59 p.m. (EST) or while appropriated funding remains available, whichever comes first.
  • Applicants must complete and submit an application form (using the link below) in accordance with the instructions and using the software specified on the form, including all required supporting documentation to ensure funding will be available at the time of claim submission.
    • Please refer to the Eligible Expenses list and submit any supporting documentation identified for each eligible item required for Project approval and reimbursement.
    • Only eligible Applicants will be considered for financial support under this Initiative on a first come, first served basis.
    • All complete applications received are evaluated based only on the information submitted.
    • The application form will not be considered if it does not meet eligibility criteria or if it is incomplete. This includes registration to the Transfer Payment Common Registry (visit Transfer Payment Ontario for more information) and to receive direct deposit payments through Supply Chain Ontario (visit Supply Chain Ontario to register or to update the business’ information).
  • Application Form can be found here
    • Note: the form must be filled out using Adobe Acrobat Reader. Although your form may appear to be filled out correctly when using non-Adobe software, Adobe Acrobat Reader is the only software that will properly retain your form details. Other PDF reader software, including your internet browser, is not compatible with this form. If you do not already have Adobe software on your computer, you can download a free version here: get.adobe.com/reader
  • N.B. During the application process, the submission of supporting documents (e.g., quotes) for eligible costs is strongly encouraged for review by OMAFRA and will be subject to evaluation for Project eligibility.
  • Completed applications, including all required documentation, should be submitted for review by email to AgRuralPrograms@ontario.ca. If you submit an application, but do not receive an acknowledgement within two business days, please contact OMAFRA at: 1-877-424-1300.
  • Following submission of the application form and approval, a file number will be assigned to the Applicant via email by OMAFRA staff.

Submitting a Claim

  • Following submission of the application form and assignment of a file number by OMAFRA staff, the Applicant will be provided with a link to the Claims Portal to use for submission of claims for reimbursement.
  • Via the Claims Portal, eligible Applicants will be able to submit claims with all supporting documentation (e.g., invoices, proof of payments) and request reimbursement for eligible expenses incurred, provided the Applicant has not reached the funding amount they are approved for.
    • The Applicant is encouraged to submit one claim form, which would include all the eligible expenses, but it is not mandatory and subsequent claim forms submitted via the Claims Portal will be accepted, provided the Applicant has not reached the maximum individual funding limit and/or funding is still available.
  • Applicants may submit a claim form to request reimbursement for eligible expenses incurred from 12:01 a.m. (EST) on November 18, 2021 up to 11:59 p.m. (EST) on October 30, 2022 provided the Applicant has not reached the maximum individual funding limit and appropriated funding is still available.
  • Approved funding is paid once you have incurred and paid for expenses, and your submitted claim package has met all the requirements and been approved by OMAFRA.
  • A final report must be completed at the completion of the Project. There will be a ten per cent (10%) holdback on any reimbursement until a final report for the Project, in such form and with such content as OMAFRA shall determine, is received and approved by OMAFRA. At a minimum, the final report submitted for the Project will include an attestation that the Project has been completed as approved and has complied with the requirements of the Initiative.
  • All approved Projects under this intake must be completed by September 30, 2022.
  • The deadline for submitting claims to OMAFRA is 4:00 p.m. (EST) on October 30, 2022.
  • The Ministry may request any additional information from the Applicant that it considers necessary and reserves the right to inspect and verify costs and/or equipment associated with claim.
  • Extensions will only be considered for Applicants who can provide valid documentation, with an estimated Project completion date, that identifies orders have been placed or the Project has already started within the intake timeframe.

Claims submitted through the Claims Portal must:

  • be complete
  • include true copies of all paid invoices and proof of payments
  • include any additional documentation requested by the administrator to verify eligible expenses
    • Refer to eligible expense list for detailed information on supplemental documentation required for identified eligible costs

Proof of payment must verify in detail:

  • who paid
  • who received payment
  • the goods or services provided
  • the amount of the payment
  • the date of the payment

Acceptable proof of payment includes:

  • an electronic image of processed cheque;
  • a statement from a banking institution indicating to whom the processed cheque was written, or electronic payment made, and for what amount; or
  • a credit card or debit card receipt or statement clearly identifying amount and to whom the payment was made. (Credit card or debit card numbers and other information, including costs that are unrelated to the Project, should be blacked out.)

Terms and Conditions

Definitions

Application Intake: The Canadian Agricultural Partnership is a five-year program, which runs from April 3, 2018 to March 31, 2023, and the Application Intake is limited period within it for the purposes of the Initiative.

Arm’s Length: In general terms, parties are considered to be at arm’s length if they are not related to, not affiliated with or controlled by one another. Refer to Section 251 of the Income Tax Act (Canada) for the detailed statutory provisions used for determining Arm’s Length relationships by OMAFRA. If you have any questions about whether a supplier meets this requirement, please contact OMAFRA at 1-877-424-1300.

Available Cost-share: Applicants can apply to receive up to the maximum amount of Available Cost-share that is stated in each Project Category Description. Eligible costs for approved Projects are reimbursed at the percentage stated.

Capital Costs: Include costs of machinery, equipment, software development/purchase and installation; renovations; site improvements; leasehold improvements; building improvements and construction.

Claim: A report submitted by the recipient to the Province of Ontario to provide the Province of Ontario with information on which to base a reimbursement payment. Claims must meet all of the requirements stated in the Contribution Agreement between the Province of Ontario and the recipient for the Project.

CRA Business Number: The CRA Business Number is a unique number the Canada Revenue Agency (CRA) assigns your business as a tax ID. It is a nine-digit identifier that is used when dealing with federal, provincial or local governments.

Farm Business Registration Number (FBRN): All farm businesses in Ontario that gross $7,000 or more annually are required by law to register their farm business with Agricorp. More information on the FBRN and allowable exemptions is available from Agricorp.

Incurred (Cost): A cost for which a business has become liable to pay.

Premises Identification (PID) Number: A PID Number is a unique identifying number assigned to a parcel of land that is associated with agri-food activities. In Ontario, premises are identified and registered in the Provincial Premises Registry. For more information on applying for a PID Number, go to ontariopid.com.

Project: The undertaking approved by OMAFRA and carried out by the Applicant for which eligible activities are reimbursed under the terms and conditions of the Initiative.

Requirements of Law: Means all applicable Requirements of Law, as may be set out in statutes, regulations, by-laws, codes, rules, ordinances, official plans, approvals, permits, licenses, authorizations, decrees, injunctions, orders and declarations, or any other similar instrument.

Agreement

If the application and the Project are approved by way of a separate letter from OMAFRA, the terms and conditions of the Canadian Agricultural Partnership and the Initiative as set out in these Guidelines (excluding the Frequently Asked Questions portion), the Application Form and in Minister’s Order 0005/2018, as may be amended from time to time, in combination will create a binding agreement between the business and Her Majesty the Queen in right of Ontario, as represented by the Minister of Agriculture, Food and Rural Affairs, for a period of seven (7) years from the date on the approval letter (“Agreement”).

In the event of an error, omission, inconsistency or conflict between anything set out in the Application Form, these Guidelines and the Minister’s Order 0005/2018, the Guidelines will prevail over the Application Form, and the Minister’s Order 0005/18 will prevail over the Guidelines.

Applying for Cost Share Funding

Frequently Asked Questions

Who may apply?
What is the available cost-share?
Can I still apply to this intake if I have submitted an application to other intakes for Projects that include the same eligible costs?
  • This Initiative is restricted to Applicants who did not apply to or chose to withdraw their application from the recent Processor and Other Business Intake (August 2021), the Producer and Other Business Intake (November 2021) and the Enhanced Biosecurity for African Swine Fever Preparedness Intake (November 2021) and reapply under this intake or future CAP intakes, for Projects that include the same eligible costs.
How do I submit my application?
How will my application be assessed?

How will I be notified that my application has been accepted?

When can I start incurring expenses?

  • Expenses incurred as of the start of the intake (November 18, 2021), are eligible. Applicants can apply and submit Projected costs for those activities on a first come, first served basis as of November 18, 2021, while appropriated funding is still available.

How do I submit a claim?

How is my claim assessed?

When is my claim paid?

  • Approved funding is paid once you have incurred and paid for expenses, and your submitted claim package has met all the requirements and been approved by OMAFRA.
  • There will be a ten per cent (10%) holdback on any reimbursement until a final report for the Project, in such form and with such content as OMAFRA shall determine, is received and approved by OMAFRA. At a minimum, the final report submitted for the Project will include an attestation that the Project has been completed as approved and has complied with the requirements of the initiative.

What costs are eligible for cost-share funding?

What costs are not eligible for cost-share funding?

Can I stack cost-share funding for the same Project?

  • Applicants can only access one funding source under the Canadian Agricultural Partnership for a Project. However, Applicants may access other government funding as long as those other programs also allow stacking and the total assistance provided from all funding sources is not greater than 100 per cent of the total eligible costs. All funding for a Project, including from additional sources, must be listed on the application.

For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca

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