The appellants, dairy farmers, purchased an ongoing dairy operation but only acquired a fraction of the associated land.
They moved the purchased herd to their home farm under a temporary shared facilities agreement, intending to renovate the purchased farm.
They later abandoned renovation plans and sought an exemption from the Dairy Farmers of Ontario (DFO) policy to permanently merge the quotas at their home farm.
The DFO denied the exemption and ordered the cows returned to the purchased farm, imposing a 20% quota reduction penalty if they failed to comply.
The Tribunal upheld the DFO's denial of the exemption, finding the appellants' desire for efficiency did not justify circumventing quota transfer policies.
However, the Tribunal found the 20% penalty disproportionate and reduced it to 10%.