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Livestock Auctions/Stockyards

Industry Code: 01202

Compulsory
Industry Custom Pricing - CR

This industry includes businesses that facilitate the sale of livestock, but do not raise or finish the livestock as is done at cattle ranches/beef producers or feedlots.

Livestock auctioneers sell stock on a commission basis, in a similar manner to other types of auctioneers which use a public bidding process. The exception here is that livestock auctioneers are normally required to handle stock for display while selling. Livestock auctions and stockyards are included in this industry on a compulsory basis.

Operation Details:

Livestock auctions provide facilities for receiving, selling, and shipping livestock such as cattle, hogs, sheep, horses, bison, elk, etc. The traditional livestock auction involves taking in livestock from the seller or commissioned agent on consignment to the auction mart. Their employees weigh the stock and allocate them to a holding pen. The stock is normally sold by auction the day or day after it is received. The cattle or "livestock" auction will provide a number of services related to the transfer of ownership such as branding, dehorning, immunization and other veterinary services.

Livestock auctions or "auction marts" may arrange for pick-up of cattle or other livestock from the producer either with their own cattle hauling units or through a common carrier.

The evolution of the "livestock exchange" has led to different marketing techniques which can eliminate the need for the livestock exchange to handle the cattle. Livestock sold by "satellite" or through "forward contracting" will be delivered direct from the producer to the buyer.

Satellite sales require salesmen to produce videos which are sent to a central broadcasting facility. Videos from various livestock auctions are consolidated and edited for a single satellite broadcast, from which buyers can bid by telephone.

Cattle auctions are almost identical to stockyard operations, with the primary difference being the nature of the marketing. Cattle auctions use salaried sales people and the consignor pays for the auction services. Stockyards deal with commissioned agents acting on behalf of a consignor, and the commissioned agent pays the stockyard for the auction services.

Underwriting Considerations:

Cattle auctions are almost identical to stockyard operations, with the primary difference being the nature of the marketing. Cattle auctions use salaried sales people and the consignor pays for the auction services. Stockyards deal with commissioned agents acting on behalf of a consignor, and the commissioned agent pays the stockyard for the auction services.

It is common for cattle or other livestock auctions to be involved in other auctioneering activities such as farm auctions, equipment auctions, etc. This is usually incidental to the primary business of livestock auctioning.

Industry Custom Pricing: Waiving Cost Relief Option

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. Costs related to the aggravation of a pre-existing condition will not be removed from the experience record of employers classified in this industry. In return, the portion of premiums collected to fund retroactive cost relief has been removed from the industry rate, resulting in a reduction in WCB premium rates for the industry.

Premium Rate History:

Activities:

Auctioneering Livestock
Cattle Auctioneers
Livestock Auctions
Stockyards

Rate Group History:

In 2016, new rate groups were established to better define the various types of farming operations being conducted in Alberta. Rate group 012100 encompasses industries that pertain to the farming of large animals. Prior to 2016, these operations were classified in industry 60201, rate group 011500.

This industry includes businesses that facilitate the sale of livestock, but do not raise or finish the livestock as is done at cattle ranches/beef producers or feedlots.

Livestock auctioneers sell stock on a commission basis, in a similar manner to other types of auctioneers which use a public bidding process. The exception here is that livestock auctioneers are normally required to handle stock for display while selling. Livestock auctions and stockyards are included in this industry on a compulsory basis.

Premium Rate History:

Activities:

Auctioneering Livestock
Cattle Auctioneers
Livestock Auctions
Stockyards

Operation Details:

Livestock auctions provide facilities for receiving, selling, and shipping livestock such as cattle, hogs, sheep, horses, bison, elk, etc. The traditional livestock auction involves taking in livestock from the seller or commissioned agent on consignment to the auction mart. Their employees weigh the stock and allocate them to a holding pen. The stock is normally sold by auction the day or day after it is received. The cattle or "livestock" auction will provide a number of services related to the transfer of ownership such as branding, dehorning, immunization and other veterinary services.

Livestock auctions or "auction marts" may arrange for pick-up of cattle or other livestock from the producer either with their own cattle hauling units or through a common carrier.

The evolution of the "livestock exchange" has led to different marketing techniques which can eliminate the need for the livestock exchange to handle the cattle. Livestock sold by "satellite" or through "forward contracting" will be delivered direct from the producer to the buyer.

Satellite sales require salesmen to produce videos which are sent to a central broadcasting facility. Videos from various livestock auctions are consolidated and edited for a single satellite broadcast, from which buyers can bid by telephone.

Cattle auctions are almost identical to stockyard operations, with the primary difference being the nature of the marketing. Cattle auctions use salaried sales people and the consignor pays for the auction services. Stockyards deal with commissioned agents acting on behalf of a consignor, and the commissioned agent pays the stockyard for the auction services.

Underwriting Considerations:

Cattle auctions are almost identical to stockyard operations, with the primary difference being the nature of the marketing. Cattle auctions use salaried sales people and the consignor pays for the auction services. Stockyards deal with commissioned agents acting on behalf of a consignor, and the commissioned agent pays the stockyard for the auction services.

It is common for cattle or other livestock auctions to be involved in other auctioneering activities such as farm auctions, equipment auctions, etc. This is usually incidental to the primary business of livestock auctioning.

Industry Custom Pricing: Waiving Cost Relief Option

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. Costs related to the aggravation of a pre-existing condition will not be removed from the experience record of employers classified in this industry. In return, the portion of premiums collected to fund retroactive cost relief has been removed from the industry rate, resulting in a reduction in WCB premium rates for the industry.

Rate Group History:

In 2016, new rate groups were established to better define the various types of farming operations being conducted in Alberta. Rate group 012100 encompasses industries that pertain to the farming of large animals. Prior to 2016, these operations were classified in industry 60201, rate group 011500.