Financial lenders - as part of their due diligence - require documentation to confirm the status of a confined feeding operation (CFO), including confirmation that the operation has the required Agricultural Operation Practices Act (AOPA) permits from the NRCB.
When securing financing, the lender usually asks questions about the CFO such as permits, livestock capacities, pending applications, enforcement orders and complaints relating to the operation or facilities. When the NRCB receives one of these lender requests their practice is to respond directly, indicating the information they have as of that day. If your CFO was permitted by the NRCB, responding to these requests usually only takes a few days.
If your CFO existed before AOPA came into effect in 2002, then things can get a bit more complicated and take longer depending on the information available about your operation.
A pre-2002 municipal permit or a permit issued by a health authority, with clearly stated permitted livestock numbers and facilities, greatly assists the NRCB in responding to the lender and normally adds very little time to processing the request.
The NRCB may have to make a grandfathering determination if:
- Your CFO does not have a previously issued permit.
- You have a pre-2002 permit but information regarding your facilities and livestock capacity is not on it.
- The information on the permit is not representative of what you are doing at your operation.
This process can take several weeks or more to complete depending on the information and records available. A grandfathering determination may also require the NRCB to seek information from the municipality and neighbours.
If you are looking to secure financing for your CFO, make sure you are aware that financial lenders may need to obtain information from the NRCB and factor in that time into your plans.
For more information on the process involved in an NRCB grandfathering determination, contact your nearest NRCB field office:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Toll free: 310-0000 before the phone number (in Alberta)