Home » Transition Programs » Hog Farm Transition Program
The objective of the program is to assist hog producers who wish to transition out of the business through a $75 million initiative over two years. The program will offer tender opportunities where producers can bid on compensation. Successful bidders will be required to set aside all hog production on their farming enterprise for three years. TOP
The program is open to all producers that were in hog production on April 1, 2009 and are willing to commit to setting aside their entire hog production facilities for three years. Production facilities must remain empty for the entire 3-year period, starting on the date the barns were completely depopulated.
Eligible participants must be the owners of the pigs. Participants must also own the barns where the pigs are being raised or have signed agreements with the barn owners stating the barn owners also commit to idle their production facilities for three years following emptying of the barns. These signed agreements are legal contracts that clearly describe how any program payments are to be shared and provide authority to the Program Administrator to split the payment between the pig owner and the barn owner.
Should a producer not be able to obtain such an agreement for a barn that is leased, rented or contracted, the production in those barns is not eligible to be included in the program calculations. TOP
Businesses operating in receivership or already under bankruptcy are not eligible to participate in the HFTP.
Producers that receive loans under the HILLRP are not eligible for the HFTP. While producers may apply for both the Hog Industry Loan Loss Reserve Program and the HFTP, they are eligible to receive benefits (payments or loans) from only one.
Producers who participated in either the Cull Breeding Swine Program or the Extended Cull Breeding Swine Program may be eligible, but barns or partial barns (i.e. square footage) that received payment from either of those programs are not eligible to participate in the HFTP nor can this inventory be included in calculations. TOP
Producers interested in participating in the Hog Farm Transition Program must first register with the program. Once registration information is received, the administrator will verify eligibility and send the participant confirmation of eligibility along with a unique identification number that will be used in the bidding process.
It is expected this review process will take 3 to 5 days. If you have not had contact with the Program Administrator by day 5, please call them.
Registration forms can be downloaded and printed off and filled in manually. Once complete, the forms can be mailed, faxed or scanned and e-mailed to the administrator.
Mailing Address:
Hog Farm Transition Program
Canadian Pork Council
c/o Welch LLP
1200-151 Slater Street
Ottawa, ON
K1P 5H3
E-mail Address: hftp@welchllp.com
Fax Number: 1-888-334-6618 TOP
Producers will submit bids for the total value of funds they need to comply with the program requirements to idle all of their hog production facilities for 3 years following complete emptying of all barns.
In order for bids to be comparable among all types of facilities (farrow to isowean, farrow to wean, farrow to finish, finishing), a system to equitably compare bids has been developed. Each total farm bid is converted to a common unit basis for comparison purposes. This unit is called an Animal Unit Equivalent (AUE).
Bids are converted to the AUE based on the inventory of animals on the farm as reported in their most recent or previous AgriStability report. The resulting AUE is used to compare bids among those tendered. Payments will be awarded to the lowest bids first, followed by successively higher bids until the funds for that tender are exhausted. TOP
An on-line calculator is available at www.cpc-ccp.com to assist producers in calculating their total bid and per animal unit bid based on productive capacity. TOP
Each registered participant will receive a unique participant number and bid form. Completed bid forms must be submitted to the administrator by fax, mail or e-mail no later than 2 p.m. Eastern Time on the day of the tender. All bids received by 2:00 p.m. Eastern Daylight Time will be considered for that date’s tender. TOP
No. There are no maximums on individual payments; however there will be maximum per animal unit equivalent bids set by the Program Administrator. These will relate to the value of bids submitted for that tender process and will disqualify bids above the maximum. TOP
For successful bidders, the program payment will be the total value requested by that producer on their bid form. TOP
Yes. The Program is not dictating how the barns are emptied. You may market your animals immediately or market them as they reach market weight. Producers choose what is best for their own situations. TOP
Yes. The revenue you receive from marketing your inventory is yours. It will not be deducted from your program payment. TOP
To participate in the Hog Farm Transition Program, producers must remove all hog production facilities owned by the business entity from operation for a period of 3 years. TOP
The program will be delivered through the Canadian Pork Council. Welch LLP, an Ottawa-based accounting firm, has been appointed administrator of the program and will manage all financial and auditing requirements. TOP
A series of tenders will be held over the course of the program to help ensure an orderly disposition of hogs occurs. The program recognizes the need for an orderly transition to help minimize any impact on market prices. TOP
The number of productive spaces removed from the industry will depend on the number of successful bids received from producers. No specific targets regarding productive capacity have been established by Agriculture and Agri-Food Canada. TOP
The program will allow producers to submit the minimum amount of assistance they would be willing to accept to remove all future production for facilities owned by the business for a minimum of 3 years. There will be no formal minimum or maximum bids established. TOP
Bids will be entered through an anonymous process. TOP
All types of hog production facilities will be eligible for the program and there will be no management of industry structure involved in the program. The management committee, does however, retain authority to change that policy if it becomes necessary. TOP
No. The program requires that all hog production facilities owned by the producer or legal entity that is applying for the program be emptied and idled for a period of 3 years. TOP
In the event the owner of the pigs is not able to come to an arrangement with the owner of the barn where pigs are being raised, the applicant (the pig owner) cannot include the animals in those barns as part of the inventory for the program. TOP
If the farm has current inventory values that exceed the inventory values as reported in AgriStability, the producer would need to address this with the Program Administrator. TOP
If the farm has current inventory values that exceed the inventory values as reported in AgriStability, the producer would need to address this with the Program Administrator. TOP
There is no direct linkage between HFTP payments and outstanding APP advances. Producers will remain responsible for arranging repayment of any outstanding debts. TOP
If the producer is interested in applying for the program, they are instructed to complete the registration form with the available figures. Eligibility will be determined by the Program Administrator by reviewing other available information to determine legitimate inventory numbers to be claimed. TOP
Program details are available on the Canadian Pork Council website at www.cpc-ccp.com. If more assistance is required, a producer Hot Line at 1-888-368-4023 is in operation Monday to Friday from 8 a.m. to 6 p.m. Eastern time. TOP