Regulations Amending the Compensation for Destroyed Animals and Things Regulations: SOR/2025-136

Canada Gazette, Part II, Volume 159, Number 13

Registration
SOR/2025-136 June 6, 2025

HEALTH OF ANIMALS ACT

The Minister of Agriculture and Agri-Food makes the annexed Regulations Amending the Compensation for Destroyed Animals and Things Regulations under paragraph 55(b)^{footnote a} of the Health of Animals Act ^{footnote b}.

Ottawa, June 6, 2025

Heath MacDonald
Minister of Agriculture and Agri-Food

Regulations Amending the Compensation for Destroyed Animals and Things Regulations

Amendment

1 The portion of items 7 and 8 of the schedule to the Compensation for Destroyed Animals and Things Regulations ^{footnote 1} in column 3 is replaced by the following:

Item	Column 3 Maximum Amount ($)
7	16,500
8	10,000

Coming into Force

2 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues

The Health of Animals Act (HAA) provides authority to the Minister of Agriculture and Agri-Food to order an animal destroyed if it poses a disease risk, and to order compensation to be paid to the owner for the market value of the animal ordered destroyed. The HAA also gives authority to the Minister to make regulations related to this compensation, including establishing maximum amounts. The associated regulations are the Compensation for Destroyed Animals and Things Regulations (CDATR), which sets out the parameters for awarding compensation. The CDATR includes a schedule that identifies maximum amounts by different animal species and production type. This maximum amount acts like a “cap,” setting the maximum value of compensation that can be awarded for different animals.

The objective of this compensation regime is to encourage the early reporting of animal disease, and the cooperation of owners in disease control efforts. It is not meant to provide economic support or recovery. Other supports at the federal, provincial and territorial levels may also be available.

The maximum amounts listed for cattle in the CDATR were last updated in 2015 and are as follows:

• Cattle (Bos taurus and Bos indicus) Registered:^{footnote 2} $10,000; and
• Cattle (Bos taurus and Bos indicus) Non-registered: $4,500.

Stakeholders have commented that the current maximum amount for cattle is too low and does not reflect the latest market value. In response, the Canadian Food Inspection Agency (CFIA) conducted a market analysis which revealed that the market value of cattle has increased since 2015. As such, there is a need to revise the maximum amounts for registered and non-registered cattle in the CDATR. The new amounts are expected to continue encouraging early reporting of diseases and the cooperation of owners in eradication efforts.

Background

Legislative and regulatory context

The HAA authorizes the Minister of Agriculture and Agri-Food (the Minister) to order the destruction of an animal if it poses a disease risk. While unfortunate, the ordering of animals destroyed is meant to keep humans and other animals safe.

The HAA (section 51) also authorizes the Minister to order compensation from the Consolidated Revenue Fund (CRF) to be paid to the owner for the market value of the animal ordered destroyed. The HAA also states that the compensation value cannot exceed any maximum amount established with respect to the animal by the regulations.

Section 55 of the HAA provides authority for the Minister to make regulations to set the parameters for awarding compensation for animals. This includes establishing maximum amounts, which represent a “cap” or “up to” amount of compensation that may be awarded.

The CDATR are the regulations that flow from the authorities in the HAA. The CDATR includes a schedule that lists the maximum amounts for animals by species and by production type. Actual compensation amounts paid to owners are determined on a case-by-case basis. The amount of compensation awarded is based on the market value, as determined by the Minister, that the animal would have had at the time of its evaluation if it had not been required to be destroyed, minus the value of its carcass, as determined by the Minister. The market value shall not exceed the maximum amount as prescribed in the schedule of the CDATR.

The CDATR was first published in 2000, then known as the Compensation for Destroyed Animals Regulations. The maximum amounts for animals in the Schedule to the CDATR were completely updated in July 2007 and have since been updated for specific animals as follows: white-tailed deer (November 2007), poultry (March 2011), sheep (June 2012), cattle (August 2015), and bison (December 2024).

Provincial and territorial context

The CFIA is responsible for administering and ordering compensation under the CDATR. Provincial or territorial governments are not involved in the process. However, there are federal-provincial-territorial cost-shared programs that provide financial support for owners of farmed animals, such as programs under the Sustainable Canadian Agricultural Partnership (Sustainable CAP). The Sustainable CAP is a $3.5-billion, five-year agreement (from April 1, 2023, to March 31, 2028) between the federal, provincial, and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri-food, and agri-based products sector. The agreement includes $1 billion in federal programs and activities, and a $2.5-billion commitment that is cost-shared 60% federally and 40% provincially and territorially for programs that are designed and delivered by provinces and territories. This includes business risk management programs (AgriStability, AgriInsurance, AgriInvest, and AgriRecovery) and other region-specific programs that can help provide economic support and recovery to animal owners. In addition, provinces and territories may also have their own insurance schemes and financial supports for animal owners.

Animal diseases that affect cattle in Canada

There are many examples of diseases that currently affect or could potentially affect cattle in Canada. Reportable diseases, listed in the Reportable Diseases Regulations, are diseases that can impact animal health, human health and the Canadian economy. Animal owners, veterinarians, and laboratories must report suspected cases of reportable diseases to the CFIA. A list of federally reportable diseases for terrestrial animals can be found on the CFIA website.

Bovine tuberculosis (TB) is an example of a federally reportable disease which is currently affecting cattle in Canada. Bovine spongiform encephalopathy (BSE) is another reportable disease; however, the World Organisation for Animal Health (WOAH) has recognized Canada with negligible risk status for BSE. Of concern are also emerging diseases, such as highly pathogenic avian influenza affecting dairy cattle (found in the United States, but not yet detected in Canada), and foreign diseases, such as foot-and-mouth disease (FMD).

Any of these diseases could have significant impacts on the Canadian cattle industry. Not only could an outbreak lead to potential mass culling of cattle, it could also result in the closure of international markets, leading to significant economic hardship for cattle producers. For example, following Canada’s 19th case of BSE in 2015, seven countries imposed trade embargoes on Canadian beef and beef products, resulting in an estimated total loss in Canadian beef and beef products exports of approximately $98 million. In another example, a TB outbreak in Western Canada in 2016 resulted in 12 000 animals being destroyed and approximately $39 million total compensation costs paid directly to producers.

Objective

The objective of this amendment is to establish new maximum amounts in the schedule to the CDATR for registered and non-registered cattle. This will continue to encourage owners’ early reporting of diseases as well as their cooperation and participation during disease control or eradication efforts.

Description

The amendment will revise the maximum amounts for cattle ordered destroyed to reflect the current market realities for both categories of cattle: registered and non-registered. In addition, given the current market volatility the new maximum amounts project future market value of cattle for a number of years to account for future market growth.

To reflect the increase in maximum amount for cattle, column 3 in items 7 and 8 in the schedule (section 2) to the CDATR will be amended as follows:

• Item 7: Cattle (Bos taurus and Bos indicus) registered: $16,500 (previously $10,000); and
• Item 8: Cattle (Bos taurus and Bos indicus) non-registered: $10,000 (previously $4,500).

Although the amendment will increase the maximum amounts in the CDATR, this does not mean that owners will receive this amount. Rather, the CFIA determines actual compensation amounts paid to owners on a case-by-case basis and is based on the market value that animals would have had at the time of its evaluation if it had not been required to be destroyed, minus the value of its carcass, up to the maximum amount. Typically, the CFIA will review available market reports and other supporting documents and information to reach an appropriate value for the final compensation claim.

To be eligible for compensation, the CFIA must order the animal destroyed. The objective of this compensation is to encourage the early reporting of animal disease and owner cooperation in destruction efforts. It is not meant to provide economic support or recovery. Other supports at the federal, provincial and territorial levels, as well as other insurance schemes, exist for those purposes and may be available. Rather, this compensation is meant to provide funds to an owner for the market value of the animal destroyed, and in some cases, to cover costs associated with the destruction and disposal of an animal that is ordered destroyed.

Regulatory development

Consultation

The Canadian Cattle Association (CCA) represents the interests of the beef cattle industry in Canada, acting as the national voice of Canada’s 60 000 beef farms and feedlots. Within the CCA, there are nine provincial associations, representing all provinces except for Newfoundland and Labrador. The CCA also has associated organizations and divisions and affiliates. Notably, this includes the National Cattle Feeders’ Association and the Canadian Beef Breeds Council.

In January 2025, the CCA raised concern that the market value of cattle has increased, and that the maximum amounts for cattle (items 7 and 8 in the CDATR schedule) need to be updated. Based on this concern and initial evidence provided by the CCA, the CFIA conducted an independent analysis of the market value of cattle over the past decade and in 2024 (for more details, see “Data and Methodology” section below). Based on this analysis, it was determined that market value for cattle has increased since 2015. This supported the need to revise the maximum amounts.

In May 2025, the CFIA met with the CCA to present its market analysis and findings. The CCA confirmed the findings that the price of cattle had increased since 2024 and most noticeably in 2025. They also noted that the compensation amounts should consider the earning potential of cattle, rather than just the market value. Finally, the CCA suggested that the future updates to compensation amounts should be done in a more systematic manner.

Modern treaty obligations and Indigenous engagement and consultation

The initial assessment of modern treaty implications (AMTI) examined the geographical scope and subject matter of the initiative in relation to Indigenous Modern Treaties and Self-Government (MTSG) in effect, and did not identify any potential Modern Treaty or Self-Government impacts. As pursuant to the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, and in accordance with Canada’s Collaborative Modern Treaty Implementation Policy, no implications were identified. Therefore, a detailed assessment is not required.

The regulatory amendment will increase the maximum amounts for cattle in the CDATR to better reflect current market realities. The CDATR is applicable equally to Indigenous producers, should they have cattle ordered destroyed by the CFIA related to disease control. In the future, as the CFIA considers further amendments, or identifies potential impacts to Indigenous peoples (including MTSG partners) through the implementation of activities related to this regulation, the CFIA will revisit this assessment and seek to undertake activities in an inclusive and respectful manner.

Instrument choice

Baseline scenario

In the baseline or status quo scenario, the maximum amounts would continue as stipulated in the CDATR schedule as follows:

• Item 7: Cattle (Bos taurus and Bos indicus) registered: $10,000; and
• Item 8: Cattle (Bos taurus and Bos indicus) non-registered: $4,500.

Maintaining the status quo could result in cases where the market value of the animal exceeds the maximum amount set out in the CDATR. This could discourage owners and delay the reporting of animal diseases, leading to negative impacts on disease control efforts.

Regulatory scenario

In the regulatory scenario, maximum amounts for cattle will be increased to reflect the current market conditions and estimated future market growth. In the regulatory scenario, the maximum amounts would change in the CDATR schedule and would be listed as follows:

• Item 7: Cattle (Bos taurus and Bos indicus) registered: $16,500; and
• Item 8: Cattle (Bos taurus and Bos indicus) non-registered: $10,000.

The regulatory approach was chosen as it would update the maximum amounts for cattle to reflect current and projected future market value, which in turn help encourage the early reporting of diseases and the cooperation of animal owners in conducting destruction activities.

Regulatory analysis

The CFIA conducted a market analysis to determine how the market value of cattle has changed since 2015. It was observed that drought in Alberta and Saskatchewan, higher feed prices, and other factors have led to higher market value for cattle. Therefore, it is recommended to increase the maximum amounts for cattle in the CDATR.

Regulatory analysis

Data and methodology

The CFIA conducted a market analysis to determine whether the market value of cattle has increased since 2015 and used this market analysis to determine new maximum compensation amounts.

The CFIA used publicly available data, such as auction market data, while conducting its analysis of the market value of cattle. The majority of cattle in Canada are sold in public auction houses, so the price of cattle sold at these auctions is considered to be representative of the market value.

The market analysis looked at auction price data from several sources such as Canfax, Direct Livestock Market Systems (DLMS), auction houses, and cattle breeders’ associations.^{footnote 3} This data was analyzed according to the registration status (non-registered, registered), classification (beef, dairy), species (Angus, Hereford, Holstein, Jersey, etc.), and status (bred heifer, calf, bull, etc.).

In conducting the market analysis, the CFIA considered the following four key elements:

1. Non-registered cattle: The CFIA looked at historical auction prices over the past 10 years (2015–2024) as well as monthly prices (from January 2024 to May 2025).
   • Data sources: public auction data for non-registered beef cattle data was provided by Canfax (a division of CCA). Additional information from an auction house in British Columbia (BC) was used to validate findings for dairy cattle.
2. Registered cattle: The CFIA analyzed the sale of 1 259 registered cattle sold at auctions in 2024.
   • Data sources: Direct Livestock Marketing System (DLMS) of 52 auctions, and 2 auctions in Ontario. Collectively these auctions provided data for 1 259 registered cattle. The CFIA also looked at association data from the Canadian Hereford Association (CHA) and Canadian Angus Association (CAA), which validated the findings from DLMS and the two auctions.^{footnote 4}
3. Export market: The CFIA looked at the value of Canada’s live cattle exports over the past 10 years (2015–2024).
   • Data source: Global Trade Tracker
4. Compensation claims: The CFIA analyzed overall compensation claims data over the past 10 years and, more specifically, data from final compensation claims for cattle ordered destroyed in 2024.
   • Data source: internal CFIA claims data.

Market analysis

For non-registered cattle, the market analysis examined the three highest value cattle sold at auction. These were bred cows (pregnant cows), bred heifers (cows that have calved), and cow-calf pairs (mothers and calves). The CFIA looked at the average market price over the last 10 years (2015–2024). The analysis showed that prices for these three cattle types dropped from 2015–2016, where they remained stable until 2023 when they started to increase. This increase in market value continued into 2024 and the first quarter of 2025.

The CFIA also looked at monthly auction prices in 2024 and the first quarter of 2025. During the latter part of 2024 and continuing to 2025, the market value of non-registered cattle continued to increase, in particular cow-calf pairs. Given that cow-calf pairs were the highest value, their latest auction market price was used to establish the new maximum amounts. Further, recognizing the market volatility, an escalator was applied using Canfax data.

For registered cattle, the analysis looked at auction sales of 1 259 registered cattle in 2024. Based on this auction data, 95% of the registered cows were sold at or below $12,000. The CFIA also reviewed breed-specific auction data from the CAA and the CHA which validated the previously mentioned analysis.

The market analysis also examined the value of cattle being exported. CFIA looked at the value of live cattle exports from Canada to other countries. The market value trend over the last 10 years (2015–2024) was similar to what was observed with the domestic market, with prices dropping in 2016 and remaining relatively stable until 2022, when prices started to increase. In 2024 the average price per head was under the maximum amount.

The CFIA also examined compensation claims for cattle ordered destroyed. Specifically, of the compensation claims submitted between April and August 2024, 99% received compensation amounts below the current maximum amounts (i.e. less than $10,000 for registered cattle and $4,500 for non-registered cattle). Only two claims, both for registered cattle received the maximum amount of compensation (i.e. $10,000) as set out in the CDATR.

Recommendation

Based on the market analysis, the CFIA determined that the market value of cattle has increased. Consequently, the maximum amounts currently specified in the CDATR must be amended to more accurately reflect the current market value for both registered and non-registered cattle, as shown in Table 1.

To establish the new maximum amounts, the CFIA applied the following principles:

• Maximum amounts must be high enough to encourage early reporting and owner cooperation but are not intended to support full economic recovery nor replace other economic supports.
• Maximum amounts must be based on reliable and public market information and be representative of the cattle market across Canada.
• Maximum amounts should be reflective of the market value and sufficiently cover for the foreseeable future.

The new maximum amounts were established as follows:

• Non-registered cattle: the CFIA used the high auction market price in 2025 for the highest value cattle (cow-calf pair). To account for market volatility, the CFIA then applied an escalator using Canfax data to project future market growth.

The new maximum amount for non-registered cattle is $10,000.

• Registered cattle: the CFIA determined a market value that would cover 95% of the registered cattle sold in 2024 and applied a growth rate to account for future market growth.

The new maximum amount for registered cattle is $16,500.

Table 1: Regulatory amendment

Amendment	Baseline scenario	Regulatory scenario
Updated maximum amounts for cattle	$4,500 for non-registered cattle $10,000 for registered cattle	$10,000 for non-registered cattle $16,500 for registered cattle

Benefits and costs

Overall benefits

By updating the maximum amounts based on latest current market values, the amendment is expected to encourage early reporting of animal diseases and owner cooperation in disease control efforts, which is essential for prompt intervention. Prompt intervention minimizes the spread of disease and the magnitude of the impact on human and animal health. This, in turn, helps to protect the economic viability of Canada’s farmed livestock sector.

Benefits for industry

Cattle owners that have cattle ordered destroyed will benefit as the updated maximum amounts better reflect the current market values and take into consideration future market growth.

Costs to industry

There is no incremental cost to industry with this amendment. Producers who have been impacted by a reportable disease may be eligible to receive an increased compensation amount, noting that the actual compensation order is based on the actual market value of the animal at the time of its evaluation.

Costs to the Government

There are no incremental costs to the CFIA associated with this amendment. Compensation is paid from the Consolidated Revenue Fund (CRF) and so the Government will incur the increased costs associated with the new maximums. The exact impact on the fiscal framework associated with increasing maximum amounts is unknown because disease outbreaks are unpredictable and depend on many factors (i.e. outbreak severity, number of cattle ordered destroyed, market value of those cattle). However, historically most compensation claims are for non-registered cattle that have lower maximum amounts. For instance, between 2022 and 2024, over 95% of claims were for non-registered cattle, while only 5% of claims were for registered cattle.

To estimate the potential fiscal impact associated with this amendment, the CFIA undertook a case study using the 2024 compensation claims paid for cattle ordered destroyed. The claims for 2024 were compared using the current maximum amounts, and the proposed new maximum amounts ($16,500 for registered, and $10,000 for non-registered). In reviewing compensation claims between April and August 2024, the majority of claims (96%) were for non-registered cattle and 4% were for registered cattle. Only two claims, both for registered cattle, had market values exceeding the current maximum and were capped at the maximum amount ($10,000). The total value of compensation claims for 2024 was $363,887 ($54,137 for registered, $309,750 for non-registered). Hypothetically, if the new maximum amounts were applied to the same claims, the net increase would be $8,947 (2%) as noted in Table 2 below.

Table 2: Hypothetical fiscal impacts of the amendment on 2024 compensation claims

	Baseline scenario	Regulatory scenario	Fiscal impact
Description	Actual fiscal impact of cattle compensation claims in 2024	Fiscal impact with new maximum amounts	Net fiscal impact = regulatory scenario – baseline scenario
Number of claims	Registered cattle: 8 Non-registered cattle: 177 Total claims: 185	Registered cattle: 8 Non-registered cattle: 177 Total claims: 185	N/A
Compensation payment	Registered cattle: $54,137 Non-registered cattle: $309,750 Compensation payment (total value of claims): $363,887	Registered cattle: $63,084 Non-registered cattle: $309,750 Compensation payment (total value of claims): $372,834	$372,834 (regulatory scenario)  – $363,887 (baseline scenario) = $8,947 Fiscal impact associated with regulatory scenario: $8,947 (2% increase over the baseline scenario)

Small business lens

As this amendment to the CDATR does not affect the operations of the cattle industry nor the compensation process, the small business lens does not apply. There are no costs to small businesses.

One-for-one rule

The one-for-one rule does not apply, as there is no change in the regulatory requirements. Compensation is optional for producers who wish to be compensated. No regulatory titles are repealed or introduced.

Regulatory cooperation and alignment

There are no regulatory cooperation and alignment considerations for the amendment. Compensation is only available for Canadian owners of animals ordered destroyed by the CFIA, there is no direct impact on international partners.

International obligations

There are no international obligations that apply to this amendment.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

Gender-based analysis plus (GBA+) impacts have been identified for this amendment.

The regulatory amendment will have a direct impact on owners of cattle ordered destroyed by the CFIA (e.g. farmers and producers) during animal disease outbreaks. Most farm operators are male and 55 years old or over. Most cattle farms are located in Alberta.

The CFIA has also identified potential indirect benefits for the farm and rural populations in Canada, and the Canadian population at large. Certain groups are not likely to indirectly benefit more than other groups. The overall objective of the compensation regime is to encourage early reporting of animal disease and owner cooperation in disease control efforts. This would ultimately help minimize the spread of disease and in turn may help support the economic viability of Canada’s animal sector.

Implementation, compliance and enforcement, and service standards

This amendment comes into force on the day on which it is registered. This means that the new maximum amounts for registered and non-registered cattle come into force upon registration and are not retroactive.

It is not anticipated that the amendment will affect existing CFIA processes and service standards. In general, when a CFIA district veterinarian determines that a disease is present or suspected on a farm, the veterinarian may issue an “order for destruction (CFIA/ACIA 4202).” When destruction of an animal is ordered by the CFIA, the CFIA district veterinarian provides an overview of the compensation process and how market value will be determined. To receive compensation the affected owner must submit evidence of the animal’s value, documentation as required, and a completed application.

The timeline to receive compensation can range from several weeks to possibly months, depending on the information provided by the affected owner. Factors such as the quality, relevance, complexity of the documentation, and the volume of compensation claims can affect how long it takes.

The evaluation process is complex. In order to minimize financial hardship and improve the wellbeing of owners, CFIA compensation evaluators may offer advance compensation payments during initial meetings with owners, while the owner is still working on disease response.

For more information on compensation for animals ordered destroyed, visit: Animal health compensation – what to expect when an animal is ordered destroyed.

All compensation paid under the CDATR is recommended by a veterinary inspector designated under the HAA. A mechanism for appeal of compensation awards exists under the HAA. A judge of the Federal Court acts as the assessor for appeals.

Contact

Regulatory, Legislative and Economic Affairs Division
Canadian Food Inspection Agency
1400 Merivale Road
Ottawa, Ontario
K1A 0Y9
Email: cfia.legislation-legislation.acia@canada.ca