Marginal note:Binding on Her Majesty
3. This Act is binding on Her Majesty in right of Canada or a province.
PROTECTION OF PRODUCERS' INCOME
Marginal note:Governor in Council authorization
4. (1) The Governor in Council may, by order, authorize the Minister to enter into an agreement with one or more provinces to provide for the establishment of any of the following programs:
(a) a net income stabilization account program;
(b) a gross revenue insurance program;
(c) a revenue insurance program; and
(d) a crop insurance program.
Marginal note:Statement of principles
(2) In negotiating an agreement authorized under subsection (1), the Minister shall take into consideration the following principles in respect of any program to be established under the agreement:
(a) the program should not unduly influence the decisions of producers of agricultural products with respect to production or marketing, and should encourage adjustments with respect to production or marketing so as to improve the effectiveness of the responses of producers to market opportunities;
(b) the level of protection to be provided by, and the relative share of governmental contributions to be provided to, the program in relation to particular agricultural products or classes of agricultural products should be equitable and reasonably consistent with all other agreements, taking into account regional diversity;
(c) the program should encourage the long-term social and economic sustainability of farm families and communities;
(d) the program should be compatible with Canada’s international obligations; and
(e) the program should encourage long-term environmental and economic sustainability.
Marginal note:Elements to be contained in all agreements
5. (1) An agreement shall provide for the required elements of each program to be established under the agreement, including, without limiting the generality of the foregoing, any elements that may be prescribed and the following required elements:
(a) the criteria for determining the eligibility of producers for participation in the program;
(b) the agricultural products or the grade, quality, variety, class, type or form of agricultural products or any special method of production thereof to which the program applies and the criteria for determining their eligibility to be covered by the program, including any ceilings to be applied on or minimum levels to be assigned to the quantity or value thereof;
(c) the manner of determining the income of producers and the manner of determining the value of the eligible agricultural products produced by them;
(d) the conditions under which and the procedure by which producers may enrol in or opt out of the program;
(e) the circumstances in which and the conditions under which a payment will be made to a producer or group of producers, the method of determining the amount of a payment, and the manner in which the payment will be made;
(f) the categories of expenses incurred in the administration of the program that are to be shared, and the manner in which those expenses are to be shared and paid;
(g) the method of settling any account that remains outstanding under the agreement at the time of its termination or expiration;
(h) a covenant by the province that it will keep and maintain such classes of records, and will furnish the Minister with such classes of information, as are specified;
(i) the terms and conditions of financial audits and compliance audits in respect of the program; and
(j) the duration of, and the manner of amending, the agreement.
Marginal note:Environmental requirements to be provided for in agreements
(2) An agreement respecting any program shall, subject to any applicable laws of Canada or a province,
(a) provide for the circumstances and conditions under which insurance may be withheld, restricted or enhanced for the purpose of protecting the environment and of encouraging sound management practices to ensure environmental sustainability; and
(b) require an environmental assessment of the program to be conducted within two years after the coming into force of the agreement and every five years thereafter, and provide for the manner in which the assessment is to be conducted.
Marginal note:Establishment of committees
(3) An agreement that provides for the establishment of a gross revenue insurance program, a revenue insurance program or a net income stabilization account program shall provide for
(a) the establishment of one or more national committees representing the parties to the agreement and the producers, and such technical experts as may be considered appropriate;
(b) the powers and duties of the committees, including a continuing review of the operation of this Act and the agreements and report to the Minister periodically and at least once a year on its recommendations on the administration of the agreements, this Act and any amendments it considers advisable;
(c) the manner in which members of the committees are to be appointed; and
(d) the payment of the remuneration and expenses of members of the committees.
Marginal note:All programs to be self-sustaining
(4) An agreement respecting any program, other than a net income stabilization account program, shall
(a) provide for the method of determining and adjusting the level of premiums, the respective share of the premiums to be paid by Canada, the province and the producers and the times at which and the manner in which premiums are to be paid; and
(b) require that the premiums levied under the program be sufficient to allow the program to be self-sustaining.
- Date modified: