An Act to establish programs for the marketing of agricultural products, to repeal the Agricultural Products Board Act, the Agricultural Products Cooperative Marketing Act, the Advance Payments for Crops Act and the Prairie Grain Advance Payments Act and to make consequential amendments to other ActsAgricultural Marketing Programs ActAgricultural Marketing Programs1997April
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A-3.7201997Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:SHORT TITLEShort titleThis Act may be cited as the Agricultural Marketing Programs Act.INTERPRETATIONDefinitionsThe definitions in this subsection apply in this Act.administratoragent d’exécutionadministrator means one of the following organizations, if it has the power to sue and be sued in its own name: an organization of producers that is involved in marketing an agricultural product to which Part I applies;an organization, other than a lender, that the Minister, taking into account any criteria prescribed by regulation, determines to be an organization that represents producers who produce, in an area, a significant portion of an agricultural product for which advances will be made; oran organization, including a lender, that the Minister determines to be an organization that would be able to make advances more accessible to producers and that the Minister designates as an administrator.advanceavanceadvance means an advance payment to an eligible producer for an agricultural product.advance guarantee agreementaccord de garantie d’avanceadvance guarantee agreement means an agreement under section 5.agricultural productproduit agricoleagricultural product means an animal or a plant or a product, including any food or drink, that is wholly or partly derived from an animal or a plant.Board[Repealed, 2011, c. 25, s. 16]crop[Repealed, 2006, c. 3, s. 1]crop unit[Repealed, 2006, c. 3, s. 1]crop year[Repealed, 2006, c. 3, s. 1]Her MajestySa MajestéHer Majesty means Her Majesty in right of Canada.lenderprêteurlender means a financial institution, as defined in section 2 of the Bank Act, or any other legal entity that the Minister of Finance may designate for the purposes of this Act on the application of that entity.livestockbétaillivestock means cattle, sheep, swine and bison and any other animals that may be designated by regulation.marketing agencyagence de commercialisationmarketing agency meansan association of producers whose object is the marketing, under a cooperative plan, of agricultural products produced by the producers;a person engaged in the processing of agricultural products for marketing under a cooperative plan; ora person authorized by one or more associations or persons mentioned in paragraphs (a) and (b) to market agricultural products under a single cooperative plan.[Repealed, 2011, c. 25, s. 16]MinisterministreMinister means the Minister of Agriculture and Agri-Food.permit book[Repealed, 2011, c. 25, s. 16]price guarantee agreementaccord de garantie des prixprice guarantee agreement means an agreement under section 28.producerproducteurproducer means a producer of an agricultural product who isa Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;a corporation a majority of whose voting shares are held by Canadian citizens or permanent residents;a cooperative a majority of whose members are Canadian citizens or permanent residents; ora partnership or other association of persons where partners or members who are Canadian citizens or permanent residents are entitled to at least 50% of the profits of the partnership or association.For the purposes of Parts I and IV, producer includes a person or entity mentioned in any of paragraphs (a) to (d) that is entitled to an agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor on a date specified for the purposes of this definition in an advance guarantee agreement.production periodcampagne agricoleproduction period, in respect of an agricultural product, means the period of up to 18 months — or any longer period that is fixed by the Minister — specified in the advance guarantee agreement relating to the agricultural product.production unitunité de productionproduction unit, in respect of an agricultural product, means the production unit specified in the advance guarantee agreement relating to the agricultural product.repayment agreementaccord de remboursementrepayment agreement means an agreement under subsection 10(2).[Repealed, 2006, c. 3, s. 1]
1997, c. 20, s. 2;
1998, c. 17, s. 30;
2001, c. 27, s. 203;
2006, c. 3, s. 1;
2008, c. 7, s. 1;
2011, c. 25, s. 16.
Previous VersionRelated producersProducers are related for the purposes of this Act if they do not deal with each other at arm’s length.PresumptionIn the absence of proof to the contrary, producers are presumed not to deal with each other at arm’s length if they are related as follows:individuals who are cohabiting or are connected byblood relationship, in the sense that one is the child or other descendant of the other or one is the brother or sister of the other,marriage, in the sense that one is married to the other or to a person who is connected with the other by blood relationship or adoption,common-law partnership, in the sense that one is in a common-law partnership with the other or with a person who is connected with the other by blood relationship or adoption, oradoption, in the sense that one has been adopted, either legally or in fact, as the child of the other or as the child of a person who is connected with the other by blood relationship, otherwise than as a brother or sister;a corporation and a person whoholds shares in the corporation,is a member of a group of persons that holds shares in the corporation, oris related, as described elsewhere in this subsection, to a person who holds shares in the corporation or to the member of the group;any two corporations ifone person or group of persons holds shares in both corporations,a person who holds shares in one of the corporations is related, as described elsewhere in this subsection, to a person who holds shares in the other corporation,a person who holds shares in one of the corporations is related, as described elsewhere in this subsection, to a member of a group of persons that holds shares in the other corporation, orthey are both related, as described in paragraph (b) or subparagraph (i), (ii) or (iii), to a third corporation;members of the same group of persons; orpersons related, as described in paragraphs (a) to (c), to members of the same group of persons.DefinitionsFor the purposes of subsection (2),common-law partnershipunion de faitcommon-law partnership means the relationship between two persons who are cohabiting in a conjugal relationship, having so cohabited for a period of at least one year;group of personsgroupegroup of persons means a producer that is a partnership, cooperative or other association of persons.
1997, c. 20, s. 3;
2000, c. 12, s. 2.
ADVANCE PAYMENTS PROGRAMAdvance Guarantee AgreementsPurposeThe purpose of this Part is to improve marketing opportunities for the agricultural products of eligible producers by guaranteeing the repayment of the advances made to them as a means of improving their cash-flow.
1997, c. 20, s. 4;
2006, c. 3, s. 2.
Previous VersionEligible agricultural productsSubject to subsections (2) and (3), this Part applies only in respect of an agricultural product that meets the following criteria:the agricultural product isan animal that is raised in Canada or the fur pelt of such an animal,a plant that is grown in Canada or the product of such a plant, orhoney or maple syrup that is produced in Canada;the Minister has determined, taking into account any criteria prescribed by regulation, that it is possible to establish an average price for the agricultural product; andthe Minister has determined, taking into account any criteria prescribed by regulation, that the agricultural product is not processed or, in the case of a perishable agricultural product, is not processed beyond what is necessary to store it and prevent spoilage.Designation by Governor in CouncilThe Governor in Council may, by regulation, designate any other agricultural product as being subject to this Part.Breeding animalsAnimals that are or were used as breeding animals are not agricultural products that are subject to this Part.
2006, c. 3, s. 2.
Agreements to guarantee repayment of advancesSubject to the other provisions of this Act, the Minister may make an agreement with an administrator or with an administrator and a lender for the purposes ofguaranteeing to the administrator or, if the agreement is made with an administrator and a lender, to the lender, the repayment of advances that the administrator makes to eligible producers from money borrowed for the purpose of making the advances, together with any interest on the advances; andsetting out the obligations of the administrator in relation to the advances and their repayment.RestrictionAn advance guarantee agreement may be made with an administrator and a lender, or with an administrator that is a lender, only if the Minister is satisfied that doing so will reduce the interest payable to the lender and the agreement is made subject to terms and conditions approved by the Minister of Finance.Conditions concerning the guaranteeIf a guarantee under the advance guarantee agreement is made to a lender, or to an administrator that is a lender, the agreement must provide, in addition to any other terms and conditions, that the interest rate on the money provided by the lender, or by the administrator, as the case may be, will not exceed the rate specified in the agreement.Administrator to demonstrate abilityAn administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement.Terms and conditionsIn addition to identifying the agricultural products and specifying the terms and conditions governing advances and their repayment, an advance guarantee agreement must provide that the administrator agreesto make an agreement with each buyer mentioned in subparagraph 10(2)(a)(i), other than the administrator, to withhold amounts as provided in that subparagraph and to remit them immediately to the administrator;to withhold amounts as provided in subparagraph 10(2)(a)(i) in cases where the administrator is the buyer;to make the advances from money borrowed from a lender;to ensure that the interest rate on the money borrowed by the administrator will not exceed the rate specified in the advance guarantee agreement;to take steps, in accordance with the terms and conditions of the advance guarantee agreement, to ensure that, before an advance is made,in the case of an agricultural product that is storable, it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable,in the case of an agricultural product that is not storable, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, anddespite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement;to repay the money it borrows from the lender, together with the interest, by paying to the lender, within the period specified in the advance guarantee agreement, the amounts the administrator receives as repayment of advances;if a producer defaults, to payto the lender, within the period specified in the advance guarantee agreement, the administrator’s percentage, as determined under the regulations, of the amount of the producer’s liability under paragraph 22(a), andto the Minister within the same period the same percentage of the amount of interest paid by the Minister under subsection 9(1);to pay to the Minister any additional interest resulting from its failure to make payments required by paragraphs (f) and (g); andto pay to the Minister, within the period specified in the advance guarantee agreement, the Minister’s percentage, as determined under the regulations, of an amount repaid to the administrator under a repayment agreement by a defaulting producer if the Minister has previously made a payment for the producer under subsection 23(1).Specific terms and conditionsAn advance guarantee agreement may include any of the following terms and conditions governing advances and their repayment:the producer must agree to inform the administrator of the producer’s participation in any program listed in the schedule; andthe producer must agree to assign, if in default, any amounts payable to the producer under a program listed in the schedule tothe administrator, to the extent of the producer’s liability under section 22, andthe Minister, to the extent of the producer’s liability under section 23.ExceptionThe terms described in paragraphs (3)(c) and (f) and subparagraph (3)(g)(i) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) and subparagraph (3)(g)(i) — are not required if the Minister and an administrator are the only parties to the agreement.ScheduleThe Governor in Council may, by regulation, on the recommendation of the Minister, amend the schedule by adding to it, or deleting from it, the name of a program.RestrictionAn amendment to an advance guarantee agreement may not be made during the period specified in it that constitutes the production period if doing so would extend that period beyond 18 months, or the longer period fixed by the Minister, if one was so fixed before the advance guarantee agreement was entered into.Administration feesThe administrator may charge fees to producers for administrative services, including fees for receiving and dealing with applications for advances and for administering advances. The fees may be charged only for the purpose of recovering administrative costs under this Part and are subject to any terms and conditions of the advance guarantee agreement.Maximum contingent liabilityThe aggregate contingent liability of Her Majesty in relation to the principal outstanding under guarantees made under advance guarantee agreements must not at any time exceed $5 billion or the amount fixed by regulation.Administrator’s percentageThe administrator’s percentage mentioned in paragraph (3)(g), as determined under the regulations, must be at least 1% and not more than 15%. If the regulations establish a method of calculating that percentage, the percentage is deemed to be 1% if the calculation results in a lower percentage, and 15% if the calculation results in a higher percentage.
1997, c. 20, s. 5;
1999, c. 26, s. 42;
2006, c. 3, s. 3;
2008, c. 7, s. 2.
Previous VersionAgreement where guarantee already existsThe Minister may enter into an advance guarantee agreement with an administrator without making the guarantee referred to in paragraph 5(1)(a) if the Minister is satisfied that the repayment of the advances to be made under the agreement will be guaranteed by another person or entity.Provisions do not applyParagraph 5(3)(i), section 23 and, unless the agreement specifies otherwise, the following provisions do not apply to an advance guarantee agreement that the Minister enters into without making the guarantee referred to in paragraph 5(1)(a):paragraphs 5(3)(c) and (e) to (h);paragraphs 10(1)(g) and (h); andparagraphs 10(2)(b) and (c).
2006, c. 3, s. 4;
2008, c. 7, s. 3.
Previous VersionObligations of administratorsA guarantee given to an administrator is not effective unless the administrator complies with this Act and the advance guarantee agreement.
1997, c. 20, s. 6;
1999, c. 26, s. 43;
2006, c. 3, s. 4.
Previous VersionEmergency advanceThe advance guarantee agreement may authorize the administrator to pay, subject to any terms and conditions set out in the advance guarantee agreement, a portion of an advance as an emergency advance to an eligible producer whohas difficulty producing the producer’s agricultural product because of unusual production conditions that are attributable to weather or natural disaster, if it is reasonable to expect that the agricultural product will be marketable; orexperiences severe economic hardship, if the Governor in Council, on the recommendation of the Minister and the Minister of Finance, has declared — taking into account any criteria prescribed by regulation — that severe economic hardship affects a class of eligible producers to which that producer belongs and that the severe economic hardship would likely be substantially mitigated by emergency advances.Time limit for paymentWhen acting under paragraph (1)(b), the Governor in Council must specify the time limit — not later than the day on which the production period ends — within which the emergency advances under that paragraph must be paid.Maximum amountThe maximum amount of the emergency advance isin the case of an emergency advance under paragraph (1)(a), the lesser of $25,000, or the amount fixed by regulation, and 50%, or the percentage fixed by regulation, of the advance that the administrator expects to make to the producer in respect of the agricultural product on the basis of the amount of that product that is expected to be produced; orin the case of an emergency advance under paragraph (1)(b), the lesser of $400,000, or the amount fixed by regulation, and 100%, or the percentage fixed by regulation, of the advance referred to in paragraph (a).Provisions do not applyParagraph 5(3)(e) does not apply to emergency advances under paragraph (1)(a) and, unless the advance guarantee agreement specifies otherwise, the following provisions do not apply to emergency advances under paragraph (1)(b):paragraphs 5(3)(e) and (g);subsection 5(3.01);paragraphs 10(1)(g) and (h);paragraphs 10(2)(b) to (c); andsubsection 19(3).Applicable Minister’s percentageUnless paragraph 5(3)(g) applies under the advance guarantee agreement to emergency advances under paragraph (1)(b), the Minister’s percentage mentioned in paragraph 5(3)(i) and subsection 23(1) is 100% for an emergency advance under paragraph (1)(b) and shall not be determined by regulation.SecurityThe advance guarantee agreement may specify, in the place of or in addition to the security required by regulations made for the purpose of section 12, the security that the administrator is required to take for an emergency advance under paragraph (1)(b).
1997, c. 20, s. 7;
2006, c. 3, s. 4;
2008, c. 7, s. 4.
Previous Version[Repealed, 1999, c. 26, s. 44]Payment of interestThe Minister must, in relation to each producer, pay to the lender specified in the advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing during a production period on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts advanced during the production period, or during any shorter period specified in the agreement:amounts advanced to the producer for all of their agricultural products, andthe percentage of the amounts advanced to all related producers, for all of their agricultural products, that is attributable to the producer under subsection (2).AttributionThe amounts advanced to related producers are attributable to the producer as follows:if the related producer is an individual, the attributable percentage is 100%;if the related producer is a corporation, the attributable percentage is the percentage of the voting shares that the producer holds in the related producer;if the related producer is a cooperative, the attributable percentage is the percentage prescribed by the regulations; andif the producer and the related producer are partners or members of the same partnership or other association of persons, the attributable percentage is the percentage of the profits of the partnership or association to which the producer is entitled.Interest on emergency advancesThe Minister is not required to pay the interest for an emergency advance, unless the advance guarantee agreement provides for its payment.Reduction of principalWhen an amount is repaid on account of a guaranteed advance, the amount on which the Minister must pay interest is reduced by the amount of the repayment.
1997, c. 20, s. 9;
2006, c. 3, s. 5.
Previous VersionEligibility and RepaymentEligibility requirements for producersFor a producer to be eligible for a guaranteed advance during a production period,the producer must own the agricultural product continuously and be responsible for marketing it, as determined by the Minister, taking into account any criteria prescribed by regulation;if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on and must be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor;if the producer is a corporation with only one shareholder, the shareholder musthave attained the age of majority in the province where the producer’s farming operation is carried on,be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor, andagree in writing to be personally liable to the administrator for any liability of the producer under section 22 and to provide any security for the repayment of the advance that the administrator may require;if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,at least one of the shareholders, partners or members, as the case may be, must have attained the age of majority in the province where the producer’s farming operation is carried on and must be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor, andeach of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable to the administrator for any liability of the producer under section 22 and must provide any security for the repayment of the advance that the administrator may require;the producer and, to the extent provided in the advance guarantee agreement, any related producers must not be in default under a repayment agreement;the producer must not be ineligible under subsection 21(4);the producer must demonstrate to the administrator that the producer is capable of meeting its obligations under the repayment agreement;the producer must not have given the agricultural product, or any amount to be received under a program listed in the schedule, as security ranking in priority to the security created by section 12;the producer must demonstrate thatin the case of an agricultural product that is storable, it is of marketable quality and stored so as to remain of marketable quality until disposed of or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable,in the case of an agricultural product that is not storable, it is of marketable quality and maintained so as to remain of marketable quality until disposed of, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, anddespite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of; andthe producer must meet any additional requirements prescribed by regulation.Sharing securityFor the purpose of paragraph (1)(h), the producer’s eligibility is not affected by the administrator sharing its security with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.Eligible producers must make repayment agreementsAn eligible producer must make a repayment agreement with the administrator under which the producer agreesto repay the advanceby selling the agricultural product for which the advance is to be made to a buyer or buyers named by the administrator, and authorizing in writing each buyer to withhold from any amount they pay to the producer for each production unit an amount determined in accordance with the repayment schedule specified in the agreement,by selling, in accordance with the terms and conditions specified in the agreement, the agricultural product for which the advance is to be made and paying directly to the administrator, for each production unit, an amount determined in accordance with the repayment schedule specified in the agreement,by paying directly to the administrator any amount received under a program listed in the schedule in accordance with the terms and conditions specified in the agreement,by assigning to the administrator amounts payable to the producer under a program listed in the schedule in accordance with the terms and conditions specified in the agreement,without proof that the agricultural product has been sold, by paying the administrator an amount up to an amount prescribed by the regulations, orby paying the administrator by a combination of the methods described in subparagraphs (i) to (v);to ensure thatin the case of an agricultural product that is storable, it will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable,in the case of an agricultural product that is not storable, it will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, anddespite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement;if required by the advance guarantee agreement, to inform the administrator of the producer’s participation in any program listed in the schedule;if required by the advance guarantee agreement, to assign, if the producer is in default, any amounts payable to the producer under a program listed in the schedule tothe administrator, to the extent of the producer’s liability under section 22, andthe Minister, to the extent of the producer’s liability under section 23;to repay the amount of the overpayment, if any, of the advance within the period that begins on the earlier of the day on which the producer becomes aware of the overpayment and the day on which the administrator mails or delivers a notice to the producer stating that there has been an overpayment of the advance and ends on the expiry of the number of days set out in the agreement; andto comply with any other terms and conditions set out in the agreement, including terms and conditions governing the delivery of the agricultural product and the payment of interest, both before and after any default.Terms and conditions governing emergency advancesTerms and conditions in the advance guarantee agreement relating to emergency advances must also be included in the repayment agreements of producers who receive those advances.Required informationThe producer must provide to the administrator any information that it requests for the purpose of applying this Act.
1997, c. 20, s. 10;
1999, c. 26, s. 45;
2006, c. 3, s. 6;
2008, c. 7, s. 5.
Previous VersionUnmarketable agricultural productIf an agricultural product for which a guaranteed advance is made ceases to be in marketable condition, in whole or in part, through no fault of the producer, the producer becomes liable to repay immediately, to the administrator that made the advance, the portion of the guaranteed advance that is attributable to the unmarketable portion of the agricultural product, together with the interest on that portion from the date of the advance.
1997, c. 20, s. 11;
2006, c. 3, s. 7.
Previous VersionSecurityAn administrator that makes a guaranteed advance to a producer in a production period in respect of an agricultural product shall take the security required by the regulations, for the amount of the producer’s liability under sections 22 and 23, in the agricultural product for which the advance was made, in any agricultural product produced in a subsequent production period by the producer and, subject to the repayment agreement, in any amount that may be received by the producer under a program listed in the schedule.
1997, c. 20, s. 12;
2006, c. 3, s. 7.
Previous Version[Repealed, 2011, c. 25, s. 17]Previous Version[Repealed, 2011, c. 25, s. 17]Previous Version[Repealed, 2006, c. 3, s. 10]Previous Version[Repealed, 2011, c. 25, s. 17]Previous Version[Repealed, 2011, c. 25, s. 17]Previous Version[Repealed, 2011, c. 25, s. 17]Previous VersionAmount of AdvancesAmount of advance to be guaranteedSubject to subsection (3), the amount of an advance eligible for a guarantee under this Part is calculated by multiplyingthe number of production units for which the advance is to be madebythe rate per production unit specified in the advance guarantee agreement for the agricultural product for the production period for which the advance is made, or for a specified portion of the production period for which the advance is made.Rate per production unitThe rate per production unit may be specified for a particular agricultural product in a particular area, but it must not exceed 50%, or the percentage fixed by regulation, of the average price that in the Minister’s opinion will be payable to producers of the agricultural product in that area.ExceptionIf, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule, the maximum amount of an advance eligible for a guarantee under this Part is the lesser of the amount calculated under subsection (1) and the percent-age, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program.
1997, c. 20, s. 19;
2006, c. 3, s. 10.
Previous VersionAnnual maximum guarantee for each producerSubject to subsection (1.1), the maximum amount of advances in any production period that are eligible for a guarantee under this Act isfor a particular agricultural product produced by a producer, the amount specified in the advance guarantee agreement for that agricultural product; andfor all agricultural products produced by a producer or a related producer, to the extent that advances for the agricultural products are attributable to the producer under subsection (2), $400,000 or the amount fixed by regulation.Overlapping production periodsThe maximum amount of all advances that are eligible for a guarantee under this Act in relation to a producer, or to a related producer to the extent that the advances are attributable to the producer under subsection (2), may not, at any one time, exceed $400,000, or the amount fixed by regulation.AttributionAmounts advanced to related producers are attributable to the producer as follows:if the related producer is an individual, the attributable percentage is 100%;if the related producer is a corporation, the attributable percentage is the percentage of the voting shares that the producer holds in the related producer;if the related producer is a cooperative, the attributable percentage is the percentage prescribed by the regulations; andif the producer and the related producer are partners or members of the same partnership or other association of persons, the attributable percentage is the percentage of the profits of the partnership or association to which the producer is entitled.
1997, c. 20, s. 20;
2006, c. 3, s. 11.
Previous VersionDefaultCircumstances constituting defaultFor the purposes of this Part, a producer is in default under a repayment agreement if the producerhas not met any of their obligations under the agreement within 20 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the opinion of the administrator, adequate opportunity to meet the obligation, and requesting the producer to meet it;has not met all of their obligations under the agreement at the end of the production period for which the advance was made;has not met all of their obligations under the agreement when the producer files an assignment under the Bankruptcy and Insolvency Act or a bankruptcy order is made under that Act against the producer;at any time breaches an obligation under the agreement and, if the breach relates to the obligation to store the agricultural product or to maintain it so that it remains of marketable quality, section 11 does not apply; orprovides false or misleading information to the administrator for the purpose of obtaining a guaranteed advance, or evading compliance with an undertaking to repay it.Stay of defaultIf a default is impending, the Minister may, at the request of the administrator, order the default to be stayed for a specified period on any terms that the Minister may establish.When default ceasesA producer ceases to be in default on the full discharge of the producer’s liability under sections 22 and 23.Ineligibility periodAn advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance for any period specified in the agreement, even though the producer has ceased to be in default.
1997, c. 20, s. 21;
2004, c. 25, s. 183;
2006, c. 3, s. 12.
Previous VersionLiability of defaulting producer to administratorA producer who is in default under a repayment agreement is liable to the administrator forthe outstanding amount of the guaranteed advance;the interest at the rate specified in the repayment agreement on the outstanding amount of the advance, calculated from the date of the advance; andcosts incurred by the administrator to recover the outstanding amount and interest, including legal costs approved by the Minister.Payments to be made by MinisterIf a producer is in default under a repayment agreement and the Minister receives a request for payment from the administrator or lender to whom the guarantee is made, the Minister must, subject to any regulations made under paragraphs 40(1)(g) and (g.1), pay to the lender or the administrator, as specified in the advance guarantee agreement, an amount equal to the Minister’s percentage ofthe amounts mentioned in paragraphs 22(a) and (c); andthe interest at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance.SubrogationThe Minister is, to the extent of any payment under subsection (1), subrogated to the administrator’s rights against the producer in default and against persons who are personally liable under paragraphs 10(1)(c) and (d).Recovery of interest and costsThe producer is liable to the Minister for interest on the subrogated amount, calculated in accordance with the repayment agreement, and the costs incurred by the Minister to recover that amount, including legal costs.Limitation periodNo action or proceedings may be initiated by the Minister to recover any amounts, interest and costs that are owing more than six years after the day on which the Minister is subrogated to the administrator’s rights.Deduction and set-offThe amounts, interest and costs that are owing may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the person who is liable or their estate or succession.
1997, c. 20, s. 23;
1999, c. 26, s. 46;
2008, c. 7, s. 6.
Previous Version[Repealed, 2011, c. 25, s. 18]Previous VersionPayments out of the C.R.F.Payments that the Minister or the Minister of Finance is liable to make under this Part are to be made out of the Consolidated Revenue Fund.PRICE POOLING PROGRAMPurposeThe purpose of this Part is to facilitate the marketing of agricultural products under cooperative plans by guaranteeing minimum average prices of products sold by marketing agencies.Conditions for price guarantee agreementsThe Minister may, with the approval of the Minister of Finance, establish conditions under which price guarantee agreements may be made.Minister may make agreementsOnce the Minister has established the conditions, the Minister may make a price guarantee agreement with a marketing agency.Contents of agreementThe price guarantee agreement must provide thatthe Minister is to pay amounts based on the difference obtained by subtractingthe average wholesale price of an agricultural productfromthe initial payment made by the marketing agency for the agricultural product, together with the marketing agency’s costs;the initial payment and the marketing agency’s costs applicable to the agricultural product are those relating to the volume, grade, type and variety of the product at the time of sale;the average wholesale price is to be a reasonable price, as determined at the time of sale and, in case of a dispute, the Minister determines the price;the initial payment, the marketing agency’s costs and the average wholesale price are to be determined in the manner specified in the agreement, including specified maximum amounts; andthe marketing agency is to comply with this Part and any other terms and conditions specified in the agreement.Requirements for marketing agencyThe cooperative plan administered by the marketing agency must apply toa significant portion of the producers in the area where the plan applies; ora significant portion of the agricultural product produced in that area.In addition, the Minister must be satisfied that marketing the product under the cooperative plan will benefit the producers.Cooperative planThe cooperative plan must be an agreement or arrangement for marketing that provides foran initial payment to producers for delivery, in accordance with the agreement or arrangement, of an agricultural product produced in Canada;pooling the proceeds of the sale of the agricultural product;equal returns to the producers for like grades, varieties and types of the agricultural product; andreturning to the producers the proceeds of the sale of all of the agricultural product delivered under the agreement or arrangement and produced during a period of 12 months or less specified in the agreement or arrangement, after deducting the marketing agency’s costs and any reserves.Production and delivery of productThe agricultural product must beproduced by the producer who received the initial payment during the period specified under paragraph 28(4)(d); anddelivered during that period to the marketing agency under a single cooperative plan.Discontinuing deliveryDuring the period specified under paragraph 28(4)(d), the Minister may give notice to the marketing agency that the price guarantee agreement will not apply to any quantity of the agricultural product delivered after the date specified in the notice.Payment of liabilities under agreementThe Minister of Finance may, with the approval of the Governor in Council, pay out of the Consolidated Revenue Fund any amount that the Minister of Agriculture and Agri-Food becomes liable to pay under a price guarantee agreement.GOVERNMENT PURCHASES PROGRAMPowers of MinisterThe Minister may, with the authorization of the Governor in Council,sell or deliver agricultural products to a government or government agency of any country under an agreement made by Her Majesty with the government or government agency, and for that purpose may purchase agricultural products and make any arrangements for their purchase, sale or delivery that the Minister considers necessary or desirable;purchase, or negotiate contracts for the purchase of, agricultural products on behalf of a government or government agency of any country;buy, sell or import agricultural products;require any person on reasonable notice to give, at a specified time, any information about agricultural products that may be necessary for the administration of this Part; andstore, transport or process agricultural products, or make contracts for their storage, transportation or processing.LimitationExcept with the approval of the Governor in Council, the Minister may not sell an agricultural product under paragraph (1)(a) or (c) at a price lower than the purchase price plus handling, storage and transportation costs.GENERAL PROVISIONSContractual and Financial MattersCost recovery regulationsFor the purpose of recovering costs incurred by the Minister under this Act, the Minister may make regulations for charging fees related to making advance guarantee agreements and price guarantee agreements and fees for any other services provided by the Minister under this Act.[Repealed, 2011, c. 25, s. 19]Previous VersionCrown debts assignableThe following may be assigned in whole or in part:for the purposes of Part I, an amount payable under a program listed in the schedule that is a Crown debt within the meaning of section 66 of the Financial Administration Act; andfor the purposes of Part II, an amount payable by the Minister under a price guarantee agreement.
2006, c. 3, s. 14.
Offences and PunishmentInformation relating to advance guaranteesAn administrator commits an offence if, for the purpose of obtaining a guarantee from the Minister under Part I or evading compliance with any obligation relating to the guarantee, the administratorgives false or misleading information to the Minister; orfails to disclose any relevant information to the Minister.Information relating to guaranteed advancesA person commits an offence if, for the purpose of obtaining a guaranteed advance under Part I, or evading, or helping someone evade, compliance with an undertaking to repay it, the persongives false or misleading information to an administrator or to the Minister; orfails to disclose any relevant information to an administrator or to the Minister.Deductions and entries in permit booksA person who contravenes section 17 commits an offence.Use of documentA person who uses a document in contravention of section 18 commits an offence.
1997, c. 20, s. 34;
2006, c. 3, s. 15.
Previous VersionInformation relating to price guarantee agreementsA marketing agency commits an offence if, for the purpose of negotiating a price guarantee agreement, or obtaining a payment or evading compliance with any obligation under the agreement, the marketing agencygives false or misleading information to the Minister; orfails to disclose any relevant information to the Minister.Information relating to paymentsA person commits an offence if, for the purpose of obtaining a payment under Part II, the persongives false or misleading information to a marketing agency or to the Minister; orfails to disclose any relevant information to a marketing agency or to the Minister.Non-compliance with information requirementsA person who does not comply with a requirement to provide information under paragraph 31(1)(d) commits an offence.Evidence of requirementsIn a prosecution under subsection (1), evidence of a requirement may be given by the production of a copy of the requirement appearing to be certified as a copy by the Minister or another official of the Department of Agriculture and Agri-Food.PunishmentA producer, administrator, marketing agency or other person who commits an offence under this Act isif the offence is committed wilfully, liable on proceedings by way of indictment to a fine of not more than $500,000, to imprisonment for a term of not more than five years, or to both; andin any other case, liable on summary conviction to a fine of not more that $10,000, to imprisonment for a term of not more than six months, or to both.Prosecution of partnershipA prosecution under this Act against a partnership may be brought in the name of the partnership and, for the purpose of the prosecution, the partnership is deemed to be a person. Anything done or omitted by a partner or agent of the partnership within the scope of their authority to act on behalf of the partnership is deemed to have been done or omitted by the partnership.Officers, etc., of corporations or partnershipsIf a corporation or partnership commits an offence under this Act, whether or not it has been prosecuted or convicted, any officer, director, partner or agent of the corporation or partnership who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable to the punishment provided for the offence.Limitation periodA prosecution under this Act may be instituted no later than five years after the act or omission giving rise to the prosecution occurred.RegulationsGovernor in Council regulationsThe Governor in Council may make regulationsfor the purposes of the definition administrator in subsection 2(1), prescribing criteria for determiningwhether organizations represent producers in an area, orwhat constitutes a significant portion of an agricultural product, either generally or with respect to any specified area;designating animals as livestock for the purposes of the definition livestock in subsection 2(1);for the purpose of subsection 4.1(1), prescribing criteria forestablishing an average price for an agricultural product, ordetermining whether an agricultural product is not processed or not processed beyond what is necessary to store it and prevent spoilage;determining the administrator’s percentage mentioned in paragraph 5(3)(g), or establishing a method of calculating it, which percentage may differ among administrators depending on their experience and past performance;determining a method of calculating the Minister’s percentage mentioned in paragraph 5(3)(i) and subsection 23(1);fixing an amount for the purposes of each of subsection 5(5), paragraphs 7(3)(a) and (b), subsection 9(1), paragraph 20(1)(b) and subsection 20(1.1), which amount may, for the purposes of subsection 9(1), paragraph 20(1)(b) or subsection 20(1.1), differ with regard to classes of producers;prescribing criteria for the purposes of paragraph 7(1)(b);fixing a percentage for the purposes of each of paragraphs 7(3)(a) and (b) and 9(2)(c), subsection 19(2) and paragraph 20(2)(c);prescribing criteria for determining, for the purpose of paragraph 10(1)(a), when a producer ceases to own an agricultural product or ceases to be responsible for its marketing;prescribing, for the purposes of paragraph 10(1)(i), additional requirements, including requirements based on different classes of producers or agricultural products, different amounts of potential producer liability and different risks associated with that liability;prescribing an amount for the purposes of subparagraph 10(2)(a)(v);for the purposes of paragraph 10(2)(c), defining overpayment;respecting the security that administrators are required to take for the purposes of section 12;respecting the attempts to be made by an administrator to collect on a producer’s liability under section 22 before and after the administrator requests payment from the Minister under subsection 23(1);respecting the terms and conditions that must be met before a request for payment referred to in subsection 23(1) is made by a lender;for determining for the purposes of subsection 28(3) what is a significant portion of producers or agricultural product;respecting the assignment of the amounts referred to in paragraphs 33.1(a) and (b); andgenerally, for carrying out the purposes and provisions of this Act.RecommendationRegulations made under paragraph (1)(d.1), and regulations made under paragraph (1)(e) to the extent that they fix a percentage for the purposes of paragraph 7(3)(a) or (b) or subsection 19(2), may be made only on the recommendation of the Minister with the concurrence of the Minister of Finance.Different requirements for securityRegulations made under paragraph (1)(f.2) may require different security to be taken with respect to different classes of agricultural products, different amounts of producer liability and different risks associated with that liability.
1997, c. 20, s. 40;
1999, c. 26, s. 47;
2006, c. 3, s. 16;
2008, c. 7, s. 7.
Previous VersionReports to ParliamentAnnual reportAt the end of each fiscal year, the Minister must prepare a report on the administration of this Act, including the agreements made under it, and must have the report laid before each House of Parliament on any of the first 15 days on which it is sitting after the report is completed.Five-year reviewEvery five years after the coming into force of this subsection, the Minister must review the provisions and operation of this Act in consultation with the Minister of Finance.[Note: Subsection 42(1) in force on November 27, 2006, see SI/2006-136.]Emergency advancesThe Ministers’ review of the provisions of this Act relating to emergency advances under paragraph 7(1)(b) and their application must specifically address whether those provisions are necessary and to what extent they should be retained or modified.Tabling of reportThe Minister must have a report on the review laid before each House of Parliament on any of the first 30 days on which it is sitting after the report is completed.
1997, c. 20, s. 42;
2006, c. 3, s. 17;
2008, c. 7, s. 8.
Previous VersionREPEALS, TRANSITIONAL PROVISIONS, CONSEQUENTIAL AMENDMENTS AND COMING INTO FORCERepeals[Repeals]Transitional ProvisionsAgricultural Products Board ActDefinition of “Board”In sections 48 and 49, Board means the Agricultural Products Board, established under subsection 3(1) of the Agricultural Products Board Act.Rights and obligations transferredAll rights and property held by or in the name of or in trust for the Board and all obligations and liabilities of the Board are deemed to be rights, property, obligations and liabilities of Her Majesty.ReferencesEvery reference to the Board in any deed, contract or other document executed by the Board in its own name is to be read as a reference to Her Majesty, unless the context requires otherwise.Closing out affairsThe Minister may do anything necessary for or incidental to closing out the affairs of the Board.Legal proceedings against Her MajestyAny action, suit or other legal proceeding in respect of any obligation or liability incurred by the Board, or by the Minister in closing out the affairs of the Board, may be brought against Her Majesty in any court that would have had jurisdiction if the action, suit or proceeding had been brought against the Board.Legal proceedings by Her MajestyAny action, suit or other legal proceeding in respect of any right of the Board, or any right acquired by the Minister in closing out the affairs of the Board, may be brought by Her Majesty in any court that would have had jurisdiction if the action, suit or proceeding had been brought by the Board.Continuation of legal proceedingsAny action, suit or other legal proceeding to which the Board is party pending in any court on the coming into force of this section may be continued by or against Her Majesty in the like manner and to the same extent as it could have been continued by or against the Board.[Note: Section 49 in force January 1, 1997, see subsection 56(1).]Agricultural Products Cooperative Marketing ActNo agreements after December 31, 1996No agreements may be made under section 3 of the Agricultural Products Cooperative Marketing Act after December 31, 1996.Advance Payments for Crops ActNo guarantees of advances after March 31, 1997The Minister may not guarantee under section 4 of the Advance Payments for Crops Act any advances made after March 31, 1997 or any interest attributable to those advances.DefaultsFor the purpose of applying paragraph 10(1)(e), a default under a repayment agreement includes a default in repaying an advance made under the Advance Payments for Crops Act on or before March 31, 1997.
1997, c. 20, s. 51.1;
2006, c. 3, s. 18.
Previous VersionPrairie Grain Advance Payments Act[Repealed, 2011, c. 25, s. 21]Previous VersionDefaultsFor the purpose of applying paragraph 10(1)(e), a default under a repayment agreement includes a default in repaying an advance payment made under the Prairie Grain Advance Payments Act on or before May 31, 1997.
1997, c. 20, s. 52.1;
2006, c. 3, s. 19.
Previous VersionConsequential Amendments[Amendments]Coming into ForceComing into force — generalThis Act, except sections 44 to 46, comes into force on January 1, 1997.Coming into force — sections 44 to 46Sections 44 to 46 come into force on a day or days to be fixed by order of the Governor in Council.[Note: Sections 44 to 46 not in force.](Sections 5, 10, 12, 19 and 33.1)PROGRAMSAgriStabilityProduction Insurance ProgramProgramme d’assurance stabilisation des revenus agricoles
2006, c. 3, s. 20;
SOR/2010-283.
Previous VersionRELATED PROVISIONS
— 1999, c. 26, s. 48Sections 42 to 47 apply to crop years beginning on or after April 1, 1998.
— 2006, c. 3, s. 21TransitionalThe following definitions apply in this section.new Actnouvelle loinew Act means the Agricultural Marketing Programs Act as it reads on the day on which this Act comes into force.old Actancienne loiold Act means the Agricultural Marketing Programs Act as it read immediately before the day on which this Act comes into force.Old Act continues to applyThe old Act continues to apply after the day this Act comes into force with respect to advance guarantee agreements and repayment agreements entered into under the old Act that are still in existence on the day on which this Act comes into force.Unpaid amounts — old ActAmounts remaining unpaid in respect of advances made under advance guarantee agreements entered into under the old Act that are still in existence on the day on which this Act comes into force are to be taken into account for the purposes of applying the new Act.Unpaid amounts — spring credit advancesAmounts remaining unpaid in respect of advances made under agreements entered into under the Spring Credit Advance Program or the Enhanced Spring Credit Advance Program that are still in existence on the day on which this Act comes into force are to be taken into account for the purposes of applying the new Act.Default — spring credit advancesA default under a repayment agreement entered into under the Spring Credit Advance Program or the Enhanced Spring Credit Advance Program is deemed to be a default under a repayment agreement entered into under the new Act.Retroactive effect of regulationsFor the purpose of implementing the amendments to the Agricultural Marketing Programs Act enacted by this Act, a regulation made under the new Act, shall, if the regulation so provides, be retroactive and be deemed to have come into force on a day earlier than the day on which the regulation was made, which earlier day may not be before the day on which this Act comes into force.
— 2008, c. 7, s. 9Transitional provisionThe Agricultural Marketing Programs Act, as it read immediately before the day on which this Act comes into force, continues to apply as of that day to any agreement entered into under Part I of that Act that is still in existence on the day on which this Act comes into force.ExceptionHowever, the Agricultural Marketing Programs Act, as amended by this Act, applies to an agreement referred to in subsection (1) as of the day on which the parties amend the agreement to specify that that Act will apply and to bring the agreement into conformity with that Act.