Sale of cattle by livestock dealers

Livestock dealers licensed by Livestock Identification Services Ltd. (LIS) under the Livestock Identification and Commerce Act are authorized to sell cattle on behalf of producers.

When producers deliver cattle to a livestock dealer to sell on their behalf, they “supply” the cattle to the dealer, as opposed to “selling” the cattle to the dealer. Livestock dealers must pay producers for any cattle supplied or sold to them within two business days of possession or price discovery, whichever is later.

The following explains how a livestock dealer must complete the sections of the livestock manifest when cattle have been supplied to the livestock dealer for sale on behalf of a producer.

1. The purpose of the manifest is “Transport for Sale by Dealer on behalf of owner”. That box must be checked in Part A of the manifest.

When the box “By Dealer on behalf of owner” is checked, the Livestock Inspectors will inspect the cattle on the basis that the livestock dealer has been authorized to sell the livestock on behalf of the owner.

2. Part B of the Livestock Manifest will be filled out one of two ways, depending on the whether there is a livestock security interest in the livestock.

a) If there is no livestock security interest in the livestock, the name of the owner supplying the livestock to the dealer will be put in Part B, “On Account of”.

b) If there is a livestock security interest in the livestock, Part B would be filled out so that the lending institution is named before the person supplying the livestock as seen in the following diagram.

3. Part C, “Owner Certification” will be signed by the Livestock Dealer.

4. When livestock is supplied to a livestock dealer, Part F, “Livestock Security Interest Declaration,” is not to be filled in.

5. In Part F, the box after “Check if Livestock Security Interest Declaration is by separate document”, must be checked, and it’s the responsibility of the livestock dealer to obtain a stand-alone security interest declaration from the owner and pay the sale proceeds accordingly.

6. The sale proceeds will be payable to the livestock dealer on account of the owner or lender provided:

a) The manifest has been completed properly.

b) The brand, if any, on the livestock is registered to the person listed in Part B, “On Account of”; and

c) Any other brands, if present, have been clear by the Livestock Inspector with proper documentation.

7. Payments made to the livestock dealer should record all the names in Part B, “On Account of”, so that the livestock dealer can pay the person who supplied the cattle.

8. If cattle being transported by a livestock dealer is from more than one owner, or there is more than one livestock security interest in the cattle, a livestock manifest must be completed in each individual case.

9. It is the responsibility of the Livestock Dealer to ensure that all sections on the manifest are complete and accurate.

10. Livestock Permits and brand owner authorizations are required if the cattle are being transported out of the province by the livestock dealer.

If you have any questions, please contact Rob Maerz at (403) 225-6306 or rob.maerz@lis-ab.com.

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This article was first published in Volume 3 Issue 3 of ABP Magazine (September 2023). Watch for more digital content from the magazine on ABP Daily.