Meat processors capacity improvement initiative

The Canadian Agricultural Partnership

The Canadian Agricultural Partnership (the Partnership) is a five-year federal- provincial-territorial initiative to strengthen the agriculture, agri-food and agri-products sectors, and increase their competitiveness, prosperity and sustainability.

Overview

The governments of Canada and Ontario are helping agri-food businesses address efficiency and productivity issues in free standing meat plants and abattoirs.

Through the Partnership, the Meat Processors Capacity Improvement Initiative will provide funding for eligible recipients to implement projects to improve the productivity of their operations through equipment upgrades.

Meat Processors Capacity Improvement Initiative

Purpose

To provide cost-share support through the Canadian Agricultural Partnership (the Partnership) to provincially licensed meat processors or federally licensed meat processors for equipment to increase productivity through equipment upgrades. This initiative is offered under the Value-Added Agriculture and Agri-Food Processing priority area of Minister's Order 0005/2018, as amended.

Important timelines to consider before you apply:

• Completed application forms will be accepted from November 19, 2021 until December 3, 2021 or until the intake is fully subscribed, whichever comes first.
• Submit your application as soon as possible. Complete applications that meet all eligibility criteria will be considered on a continuous basis while funding is available.
• Approved projects: deadline for submitting a claim for equipment purchased and on property, is no later than March 25, 2022.
• Equipment must be installed and verified no later than June 30, 2022.
• Funding is only paid out after verification of project completion.

Note: Although equipment installation and verification can occur up to June 30, 2022, no project costs, including installation costs are eligible beyond the claim deadline of March 25, 2022.

The ministry reserves the right to inspect/verify installation of equipment has occurred to meet requirements outlined above.

To apply you must:

• Read, understand and agree to abide by all requirements set out in these guidelines.
• Be:
  1. an establishment identified in a licence that is issued under the Safe Food for Canadians Act (Canada) to slaughter a food animal, or to manufacture, process, treat, preserve, grade, package or label a meat product; or
  2. a meat plant operated under a licence issued under the Food Safety and Quality Act, 2001
• Be in compliance with all Requirements of Law and agree to remain in compliance with all Requirements of Law for the duration of the project.
• Provide all of the information required in the application form.
• Provide a Canada Revenue Agency Business Number as part of the application process, if applicable.

Available cost-share funding

• 60% cost-share, up to a maximum of $150,000 contribution under this initiative per business. Businesses will be able to submit multiple applications but cannot be approved for more than the maximum amount of available cost-share funding across all projects.

Eligible activities and expenses

Incremental expenses specifically required to increase efficiency and productivity that are incurred on or after November 19, 2021 for the following:

• Measures to support the productivity and efficiency of eligible businesses through the purchase and installation of new/ refurbished equipment and associated costs (including minor building modifications if necessary and feasible within timelines), as listed below.

• Eligible activities and expenses for equipment and associated costs of:
  • increased cooler/freezer capacity, including:
    • reefer trailers
    • condenser units
    • seals on cooler/freezer doors
    • air flow upgrades in coolers/freezers (for example, fans)
  • Waste management handling/processing, including:
    • equipment and structures to handle, store and dispose of deadstock and processing by-products (for example, blood and wastewater holding tanks)
    • equipment and structures to handle, store and dispose of SRM (for example, chilled and frozen storage, SRM screen system for whole plant)
    • in-vessel composting, treatment and disposal (for example, hides, feathers, deadstock)
  • Animal handling/processing, including:
    • barn/holding pen upgrades (for example, chute design, increase size/capacity)
    • animal restraints/knock boxes/upgrades (for example, non-slip floor, upright restraints)
    • kill floor/evisceration room equipment (for example, stunning equipment, hoists, bleed rail, saws, pneumatic skinning knife, hide pullers, leg cutters)
  • Product handling/processing, including:
    • conveyer/rail systems, winches, hydraulics, skinning beds/cradles, automated tote washer, scales, vacuum packaging, mixers
• Engineering/professional services for equipment that is part of the project.
• One-time costs associated with training key personnel on project-related new equipment and technology (for example, train the trainer).
• One-time labour costs specifically required for the project, such as third-party advisory fees.
• Equipment must be for facilities in Ontario and must remain in Ontario.
• In order to be eligible, costs must be for procurement of goods and services through a transaction with a third-party that is at Arm's Length from the successful applicant. Any cost that is not incurred in this manner is not eligible.
• When incurring eligible costs, successful applicants must follow a process 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.
• During the application process, supporting documents (for example, quotes) for eligible costs are required. This includes a minimum of one quote per eligible item.

Ineligible activities and expenses

The following costs and expenses are not eligible:

• any capital item that is funded by government sources at 75% or more
• in-kind contributions
• eligible costs incurred before November 19, 2021 or after March 25, 2022
• costs incurred in preparing an application
• any cost not specifically required for implementation of the project
• normal costs of establishing, expanding (including to a new facility) or operating a business
• costs for the purchase of Common items
• deposits (prepayments) for which goods or services are not yet fully received
• any travel, meal or incidental costs
• contractor expenses (for example, contractor insurance)
• multi-use items (for example, items that can reach beyond the scope of the project including computers, printers, brooms, squeegees, pressure washer, chemicals, etc.)
• equipment or structural upgrades not directly linked to increasing productivity/efficiency, examples include but are not limited to:
  • ERP software and solutions
  • equipment related to retail space
  • Personal protective equipment (PPE)
  • building security
  • upgrading processing room floor surfaces
  • conveyances for animal and product transport
  • lighting upgrades
  • pest control devices
  • written program development or updating
  • air flow upgrades (not including the coolers/freezer)
• leasing of equipment
• costs of vehicles, transportation equipment, mobile material handling equipment (powered or unpowered), and construction and agriculture machinery (for example, farm equipment)
• training not related to equipment purchased through the program
• purchase or lease of land or buildings
• financing charges, loan and lease interest payments, bank fees and charges as well as debt restructuring or fundraising
• permits and approvals
• legal fees
• expenses incurred for other approved Partnership projects
• 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
• taxes, including Harmonized Sales Tax
• any refund or rebate the applicant receives or is eligible to receive
• warranties or ongoing technical support
• any in-kind costs including in-kind time for staff training or training of staff
• modifications and repairs as part of routine maintenance (for example, replacing old surfaces with the same material; replacing or repairing doors; repairs to roof, exterior walls or foundation; fencing)
• professional services not directly related to the eligible activity
• projects that have the sole purpose of coming into or maintaining compliance with Requirements of the Law that pertain to current business operations
• projects that support activities related to aquaponic food production, aquaculture, seaweed, fish and seafood production and processing
• projects that are located outside of Ontario
• any other expenditure deemed by the minister to be ineligible

Project stacking

• Applicants may access other government funding as long as those other programs also allow stacking. The maximum level of total assistance provided from all sources is 100% of the total eligible costs.
  • Note: Any capital item that is funded by government sources at 75% or more is ineligible.
• All funding for a project, including from additional sources, must be listed on the application.

Submitting an application

Applicants can submit a completed application using the electronic application form with all supporting documentation by email to agruralprograms@ontario.ca.

If you submit an application by email, but do not receive an acknowledgement within three business days, please contact OMAFRA at: 1-877-424-1300.

All complete applications received are evaluated based only on the information submitted. Applications will not be considered if they do not meet eligibility criteria or if they are incomplete.

Complete applications that meet eligibility criteria will be considered on a continuous basis while funding is available.

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).

Applicants will be notified by email following assessment of the application. There are two possible outcomes:

• Application is approved: the applicant will receive an Approval Letter that you will be required to endorse and return to OMAFRA. The applicant will also receive confirmation of claim procedures and submission deadlines. The applicant will be required to register through the Province of Ontario's Transfer Payment Ontario system (an online registration tool), be invoiced for and pay all project costs, receive all funding paid by OMAFRA.
• Application is declined: the applicant will receive a brief explanation for the decision

Submitting a claim

Claims must be submitted to OMAFRA no later than the claim deadline date of March 25, 2022.

Although equipment installation and verification can occur up to June 30, 2022, no project costs, including installation costs are eligible beyond the claim deadline of March 25, 2022.

The ministry may request any additional information from the applicant that it considers necessary and reserves the right to inspect and verify that the equipment has been installed.

The ministry will only pay out funding after verification of project completion.

What the claim package must contain:

• completed claim form
• proof of payment
• copies of all paid invoices
• completed final report

Proof of payment must verify:

• who paid
• who received payment
• the amount of payment
• the date of payment

Acceptable proof of payments 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
• 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)
• such further and other proof as the administrator may require and accept

Approved funding will be paid once the applicant has incurred and paid for expenses and equipment, if applicable, has been installed, and the submitted claim package has met all the requirements and been approved by OMAFRA.

Definitions

In addition to definitions set out in Minister's Order 0005/2018.

Arm's Length: An entity is considered Arm's Length if they are not related, not affiliated persons, or otherwise controlled by another member or members. Refer to section 251 of the Income Tax Act (Canada) for the detailed statutory provision for determining Arm's Length relationships. If you have any questions about whether a supplier meets this requirement, please contact OMAFRA at 1-877-424-1300.

Capital costs: These 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 set out by the Province of Ontario.

Federally licensed meat plant: An establishment identified in a licence that is issued under the Safe Food for Canadians Act (Canada) to slaughter a food animal, or to manufacture, process, treat, preserve, grade, package or label a meat product.

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

Provincially licensed meat plant: Is a meat plant operated under a licence issued under the Food Safety and Quality Act, 2001.

Requirements of Law: As set out in Minister's Order 0005/2018, means all applicable statutes, regulations, by-laws, ordinances, codes, official plans, rules, Guidelines, approvals, permits, licenses, authorizations, orders, decrees, injunctions, directions, and agreements as they may be amended from time to time, with all authorities that now or at any time hereafter may relate to the Applicant's business operations, the Initiative or both and applicable program guidelines.

Application declaration

In order to apply, the applicant must agree to be bound by the Terms and Conditions of the Canadian Agricultural Partnership ("the Partnership") and Minister's Order 0005/2018.

The applicant must be a legal entity that is eligible for Partnership cost-share funding. The individual who submits the application form must be a person who is authorized by the applicant to submit the form on behalf of the applicant and to bind the applicant to the contents therein. This person is referred to as "you" below.

You must certify on the application that:

• You have read, understand, and agree to abide by all requirements of the Partnership cost-share funding given in these guidelines and Minister's Order 0005/2018.
• All information submitted on the application is true and complete, to the best of your knowledge, belief and understanding.
• All sources of funding for the proposed project, other than the applicants', have been disclosed in this application, including sources and amounts from federal, provincial and municipal governments, and such funds do not, and will, not exceed 100% of total project costs.
• The applicant does not currently owe any money to Ontario, or you have attached a description of the applicant's debt to Ontario to this application.
• You are not, nor is any officer, director or employee of the applicant (if any) a current or former federal public office holder or federal public servant, or, if you, or any officer, director or employee of the applicant (if any) are a current or former federal public officer holder or federal public servant, you or that officer, director or employee of the applicant (if any) are in compliance with the Conflict of Interest Act, the Conflict of Interest Code for Members of the House of Commons, the Values and Ethics Code for the Public Sector, and the Policy on Conflict of Interest and Post-employment, as applicable.
• You are not, nor is any officer, director or employee of the applicant (if any), a member of the House of Commons or of the Senate, or if you, or any officer, director or employee of the applicant (if any) are, you or the officer, director or employee of the applicant (if any) are permitted under the Parliament of Canada Act to receive funding from Canada under the Partnership.

You must further certify on the application, that the applicant:

• Shall retain all records relating to any payments made to the applicant including all invoices and proof of payment for at least seven (7) years from the date on which the written agreement expires or is terminated.
• Shall consent to Ontario and Ontario's program administrator (if any) publishing information about the project/activities funded including the agreement entered into, the amount of funding the applicant has been approved to receive and/or has received, the nature and results of any project/activities funded, along with the applicant's name.

You must further acknowledge and accept that:

• The Partnership is a discretionary, non-entitlement program and the applicant is not entitled to funding merely as a consequence of submitting an application. Payment is subject to Ontario receiving all the necessary appropriations from the Ontario Legislature, Ontario receiving all the necessary monies from Canada, the applicant and the applicant's project (including all activities) satisfying eligibility criteria, eligible expenses criteria, as well as the applicant's compliance with all terms and conditions of the Partnership and Minister's Order 0005/2018.
• If it is determined the applicant has received a payment the applicant was not eligible to receive, through administrative error or otherwise, the applicant will repay any and all payments that the applicant was not eligible to receive as well as any surplus funding.
• Any payments made to the applicant may be subject to recovery or offset against the applicant's pre-existing debts to the Crown in Right of Ontario or Canada.
• Ontario, Ontario's program administrator (if any) or, Canada, including, their respective ministers, directors, officers, agents, employees or representatives (as applicable) shall not be liable for any damage or loss whatsoever, or howsoever arising, including, damage or loss arising from any advice, opinions, representations, warranties or the provision of information under the Partnership.
• The information provided for the Partnership may, with the exception of the Social Insurance Number of recipients of funding who are sole proprietors, partners in a partnership and members of unincorporated entities where they do not have a Canada Revenue Agency Business Number, be disclosed by Ontario or Ontario's program administrator (if any) on behalf of Ontario to verify compliance with other provincial and federal funding initiatives administered by Ontario or another program administrator on behalf of Ontario or by Ontario in order to confirm the information provided, to verify eligibility and to ensure there is no duplication of funding.
• The information provided to the Partnership may, with the exception of the Social Insurance Number of recipients of funding who are sole proprietors, partners in a partnership and members of unincorporated entities where they do not have a Canada Revenue Agency Business Number, be subject to disclosure under the Freedom of Information and Protection of Privacy Act (Ontario), the Access to Information Act (Canada) or Privacy Act (Canada).

You must consent to the following on behalf of the applicant:

• To provide accurate, timely and full information, including supporting documentation, to Ontario or Ontario's program administrator (if any) and will notify Ontario or Ontario's program administrator (if any) immediately in the event there are any changes to information provided.
• To provide Canada, Ontario and Ontario's program administrator (if any), as well as their authorized representatives, with any information or access to a person, place or thing within ten (10) business days of any request, field verification or audit.
• To comply with onsite field inspections and/or audits by Ontario or Ontario program administrator (if any) upon notice, and during normal business hours, to verify eligibility, and to evaluate compliance with the requirements of the Partnership.
• To comply with reviews by Ontario of information related to other programs and initiatives delivered by, or for, Ontario in which the applicant is enrolled or has applied.
• The use of the applicant's name and contact information by Ontario, Ontario's program administrator (if any) and/ or Canada to contact the applicant for the purpose of evaluating the effectiveness and efficiency of the Partnership programming, or for any other similar purpose.

In the event of a conflict between anything set out in Guidelines and the Minister's Order, the Minister's Order will prevail.

Errors and Omissions Excepted.

Approved projects