Key permit considerations for buying or selling a confined feeding operation

Producers planning to buy or sell a confined feeding operation (CFO) are encouraged to contact the Natural Resources Conservation Board (NRCB) early in the process to ensure they understand their rights and obligations under Alberta’s Agricultural Operation Practices Act (AOPA).

According to the NRCB, confirming the status of a CFO permit before a transaction can help avoid unexpected issues and ensure buyers and sellers are aware of any regulatory requirements associated with the operation.

What buyers should know

Anyone who purchases or otherwise acquires a CFO permit is required under AOPA to notify the NRCB of the change in ownership.

While advising the NRCB of a change in ownership does not confirm the status of the permit, the agency may be able to answer questions about the operation. Financial institutions also commonly require confirmation of an NRCB permit before approving financing for a purchase.

Before completing a transaction, buyers are encouraged to determine whether the property has any outstanding compliance actions, unauthorized construction or permit conditions that could affect future operation of the site.

Important considerations for sellers

Sellers may also benefit from confirming that their CFO permit remains valid before listing or transferring an operation.

For operations that existed or were municipally permitted before AOPA came into effect on Jan. 1, 2002, the NRCB recommends requesting a formal grandfathering determination to confirm the operation’s status. The process can take several months.

The NRCB notes it is working toward phasing out grandfathering provisions in the legislation over the next four to five years, making now an appropriate time for eligible operators to request a determination.

Operations that have been inactive for an extended period may also require the NRCB to determine whether the permit remains valid or whether the operation is considered abandoned under NRCB Operational Policy 2016-3.

Producers seeking more information about buying or selling a confined feeding operation, permit status or grandfathering determinations can contact Kevin Seward, Manager, Compliance, at 403-331-0637 or kevin.seward@nrcb.ca.