Marginal note:Payments out of the C.R.F.

25. 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.

Marginal note:Purpose

26. The 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.

Marginal note:Conditions for price guarantee agreements

27. The Minister may, with the approval of the Minister of Finance, establish conditions under which price guarantee agreements may be made.

Marginal note:Minister may make agreements

• 28. (1) Once the Minister has established the conditions, the Minister may make a price guarantee agreement with a marketing agency.

• Marginal note:Contents of agreement

  (2) The price guarantee agreement must provide that

  • (a) the Minister is to pay amounts based on the difference obtained by subtracting

    • (i) the average wholesale price of an agricultural product

    from

    • (ii) the initial payment made by the marketing agency for the agricultural product, together with the marketing agency’s costs;

  • (b) 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;

  • (c) 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;

  • (d) 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; and

  • (e) the marketing agency is to comply with this Part and any other terms and conditions specified in the agreement.

• Marginal note:Requirements for marketing agency

  (3) The cooperative plan administered by the marketing agency must apply to

  • (a) a significant portion of the producers in the area where the plan applies; or

  • (b) a 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.

• Marginal note:Cooperative plan

  (4) The cooperative plan must be an agreement or arrangement for marketing that provides for

  • (a) an initial payment to producers for delivery, in accordance with the agreement or arrangement, of an agricultural product produced in Canada;

  • (b) pooling the proceeds of the sale of the agricultural product;

  • (c) equal returns to the producers for like grades, varieties and types of the agricultural product; and

  • (d) returning 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.