Paperwork is Key

Paperwork is Key by Jason Pollock, CEO Livestock Inspection Services of SK

By the time this goes to print, much of the fall run will be over and much of the industry will be trying to figure out what their next play should be: buy, sell, hold or some combination. Some will just be glad its over for another year. A big thank you to all of our LSS inspectors who work long hours and diligently perform their duties as they inspect roughly 750,000 cattle in just three short months. As cattle come to market or go home to new owners or winter pasture, the highways are full of liners and stock trailers moving animals around the province. The Inspection and Transportation Regulations, 1978 and the Livestock Dealer Regulations, 1995 (they can be found online at https://publications.saskatchewan.ca/) outline the necessary processes and documentation for producers, truckers, and livestock dealers operating in the province.

The livestock manifest and transportation permit are the two documents generally used to facilitate commerce and movement activities. The manifest is likely most familiar to those in the cattle and horse industry and is made available for use by LSS. It is used by the general public for both movement and sale of animals. The only exemptions for the use of a manifest are when animals are moved by the owner from one pasture to another and the distance traveled is less than 50kms or to a vet clinic.

The manifest is a legal document and must accurately reflect several key pieces of information. Ownership, financing, physical origin and destination including Premise Identification information, livestock type, number and brand details, and transporter information are all recorded on the manifest. There are also sections for the market to use as well as LSS staff. It is not a complicated document and it is critical that the information is accurate. Our inspectors spend a considerable amount of time verifying the brand information supplied supports the claim of the consignor. When there are anomalies or inconsistencies a withhold settlement may be applied to the sale of animals. This allows the seller to provide the necessary proof of ownership to allow the sale proceeds to continue through the commercial transaction. When animals arrive at the point of sale without a brand they are not afforded ownership protection. The agreement or contract behind the animals that protect the investor or lender is secured by the use of a brand and the best example of this is the feeder finance brands we see throughout the province. These allow the lender to have its security interest plainly visible. While we all love to grumble and complain about the bankers from time to time, we generally need their credit facilities to fund our operations. The most diligent lenders choose to protect their interests by requiring a brand. Banks and Co-ops are not the only ones that can secure their investment through the use of a brand, anyone can require a brand to be used to secure a civil arrangement. This affords the best protection for any financed or co-owned situation.

As the manifest is a legal document that directs the sale proceeds, it is imperative that the owner use diligence in filling out the information and that it accurately reflects the animals during movement or for sale. Truckers are an invaluable part of the industry and many absentee producers rely on them to fill out the associated paperwork required when transporting their livestock from A to B. Shooting your trucker a text telling them where the cattle are and when to pick them up isn’t always enough to be sure your sale goes as planned. Manifests incorrectly completed for absentee owners by staff or truckers who have not been made aware of the necessary details often inadvertently cause problems for the owners. Truckers are put between a rock and a hard place if they resort to guessing at details because they know they need a completed manifest before they hit the road. If you are relying on the trucker to do the paperwork it is still your responsibility to ensure the information is accurate and that either you or an authorized agent has signed the document. Any detail missing, inaccurate or incomplete could result in a delay in the processing of funds after the sale is complete.

Once the cattle are inspected, a transportation permit will be generated by LSS to authorize movement to a new destination and possibly a new owner. LSS diligence in permit details need to accurately reflect the ownership, origin destination, livestock types and head counts, transporter and brand information. In large part, this layer of paperwork isn’t often seen by the producers as it mainly pertains to dealers that have purchased cattle and are moving them to their new location.

LSS staff enters both the manifest and the permit into a central database to complete the requirements for further processing, invoicing and storage of the legal record. When the owner takes care to ensure the proper information and detail is included on the manifest, the transaction can proceed smoothly through the system and proceeds from the sale can flow appropriately.

Good paper results in good business. The manifest and permit are tools for the cattle industry to use to ensure their sales and movement of cattle flow effortlessly through the regulations and requirements designed to protect them. Diligence on the part of the owner combined with proper signatures when the paperwork is filled out goes a long way to facilitate the deal and result in a happily-ever-after ending. B