11Herd continuity requirement

11 Herd continuity requirement

(1) A herd satisfies the herd continuity requirement for a period if it satisfies the following throughout the period:

(a) where the business operation consists of a registered entity or a group of registered entities—at any change in the entities, the livestock inventories of the entities are transferred in such a way that the same animals are on the livestock inventory of the business operation before and after the change;

(b) at any change in the registered entity or entities that constitute its parent entity, the livestock inventories of the entities are transferred in such a way that the same animals are on the livestock inventory of the business operation before and after the change;

(c) there is no break in the continuity of its livestock inventory, and, in particular, its livestock inventory continues to be maintained separately from other livestock inventories of its parent entity;

(d) the information referred to in Schedule 1 is available for the herd.

Example: There is a merger between two companies, one a backgrounding operation for a feedlot and the other a breeding property that supplies cattle for background fattening before feed-lotting. If the herds are kept separate and under separate management after the merger, and there is no change to their inventories, there would be no break in continuity for the two business operations.

(2) A livestock inventory that is temporarily empty does not necessarily have a break in its continuity.

Example: The livestock inventory of a business operation is temporarily empty because the cattle are sold off due to drought, with the intention of restocking when the drought ends and continuing in the project, as indicated, for example, in the offsets reports.