LICENcE FEES

Producer Remittances
Regulations made under the authority of the Ontario Farm Products Marketing Act require that producers pay to the Ontario Sheep Marketing Agency a licence fee per head for all sheep and lambs sold other than to a sales barn or abbattoir (includes breeding or farmgate sales).  This applies to private livestock auctions as well.  Unless such licence fees are paid either to the sales yards, abattoirs, or OSMA, thse sales are not legal under the regulations. 
 
If such sales apply to you, please fill out the form found in the Sheep News Magazine (each issue) entitled 'PRODUCER REMITTANCES'.

You can also pay your remittances using VISA or MASTERCARD.  Just call 519-836-0043.   Many producers who sell farmgate or just have a few head to claim do take advantage of the Credit Card option.
 
License fees are $1.80 per head plus 13% HST.
 
ALL PRODUCERS ARE REQUIRED TO PAY A LICENCE FEE AT THE TIME OF SALE OF SHEEP AND LAMB


Sheep/Lamb Licence Fees

Because all sheep/lamb are designated as a “regulated product” by the Farm Products Marketing Act, the Ontario Sheep Marketing Agency (OSMA) is authorized to collect a Licence Fee on the sale +/or slaughter of all sheep in the province of Ontario. These fees are used to further develop the sheep industry in Ontario for the benefit of the Producers and other Stakeholders.

Under OSMA General Regulation # 1, the current Licence Fee (since December 1 2010) is set at $1.80 per head plus tax (13% HST as of 1 July 2010 = $0.23) = $2.03 in total per head. This applies to all sheep (lambs, ewes, rams, wethers).

As a Producer, the following rules apply: (All transactions may be subject to on-site audits)
 

  1. If you slaughter any sheep for your own consumption on your own farm, fees are payable by you directly to OSMA
  2. If you sell any live sheep direct to a customer (farmgate sales), the fees are payable by you directly to OSMA.
  3. If you sell any sheep to another Producer for breeding purposes, the fees are payable by you directly to OSMA.
  4. If you sell any sheep to any Feedlot Operator or other Marketer or Wholesaler, the fees are payable by you directly to OSMA, unless the buyer is a Licensed OSMA Sales Agent, in which case they will collect the fees from you and they will remit such fees to OSMA.
  5. If you have your sheep custom-slaughtered for yourself at any Abattoir, the Abattoir will collect the fees from you and they will remit the fees to OSMA.
  6. If you sell your live sheep to an Abattoir, the Abattoir will collect the fees from you and they will remit the fees to OSMA.
  7. If you sell your live sheep at a stockyard (salebarn), they will collect the fees from you and remit the fees to OSMA. Buyers at stockyards are not required to pay the license fees, however, if they then have these same sheep resold or custom-slaughtered, they would be required to pay the same license fees at that point.
(There are times when licence fees are collected more than once on the same animal, but each animal owner/marketer only pay the fees once themselves.)

Direct Licence Fee Remittance Forms are included in every issue of the Sheep News Magazine. Payment can be made in cash (at our office), by cheque or by credit card (Visa or Mastercard only). FOR ANY FURTHER INFORMATION OR CLARIFICATION, PLEASE CALL THE OSMA OFFICE


OSMA Licence Fees—Who Pays and When?

Every year the Ontario Sheep Industry has new producers, abattoirs, processors, sales agents, auctioneers and stakeholders joining the industry and they frequently ask bout Licence Fees. OSMA operates under the Farm Products Marketing Act and uses the revenue from Licence Fees to provide services mainly to Ontario producers but also to other industry stakeholders in advocacy, awareness, information, education, promotion, verification, monitoring, industry liaison, industry and producer development and research.

The basic facts of Licence Fees are:

  • The Licence Fee is owed to OSMA by the seller every time a live ovine animal is sold, privately or publicly, in Ontario.
  • All Ontario sheep producers are required to be registered with OSMA.
  • All sales barns, abattoirs, processors, sales agents and auctioneers must register with OSMA and are required to collect and pay to OSMA the Licence Fee, on behalf of the seller, for any sheep or lambs sold or processed through their organization.
  • The Licence Fee for direct producer to producer / producer to customer sales must be remitted to OSMA by the seller.
  • The Licence Fee for registered breeding animals is collected by the Canadian Livestock Records Corporation (CLRC) and remitted to OSMA by Canadian Sheep Breeders Association (CSBA). For breeding or replacement animals sold but not transferred through CLRC, the License Fee must be remitted to OSMA by the seller.

OSMA encourages anyone with questions to contact the OSMA Office.  Hard copies of the Regulations will be faxed or mailed when requested, or can be viewed under Regulations on the website.

OSMA operates for the benefit of all and appreciates the cooperation and assistance of all stakeholders. Licence Fees are the major revenue source for OSMA and it is the law. By everyone paying or assisting with the collection of Licence Fees, all are treated equally and it benefits all who participate in supplying product to all consumers.