GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Agricultural Marketing Programs Act — A-3.7 3
Related producers 3 (1) Producers are related for the purposes of this Act if they do not deal with each other at arm’s length. Presumption (2) In the absence of proof to the contrary, a producer is presumed to be related to another producer in any of the following circumstances: (a) the producer controls, directly or indirectly in any manner, the other producer; (b) the producer is controlled, directly or indirectly in any manner, by the same person or group of persons as the other producer; (c) the producer carries on a farming operation in partnership with the other producer; (d) the producer shares any management services, administrative services, equipment, facilities or overhead expenses of a farming operation with the other producer, but is not in partnership with that other producer; (e) any other circumstances set out in the regulations. Definition of group of persons (3) For the purposes of subsection (2), group 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; 2015, c. 2, s. 121
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Purpose 4 The 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
Agricultural Marketing Programs Act — A-3.7 4.1
Eligible agricultural products 4.1 (1) Subject to subsections (2) and (3), this Part applies only in respect of an agricultural product that meets the following criteria: (a) the agricultural product is (i) an animal that is raised in Canada or the fur pelt of such an animal, (ii) a plant that is grown in Canada or the product of such a plant, or (iii) honey or maple syrup that is produced in Canada; (b) 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; and (c) the 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. Breeding animals (2) Subject to any regulations made under paragraph (3)(b), animals that are or were used as breeding animals are not agricultural products that are subject to this Part. Regulations (3) The Governor in Council may make regulations (a) designating any agricultural product as being subject to this Part; and (b) designating any breeding animals or classes of breeding animals as being subject to this Part and respecting any conditions related to that designation. 2006, c. 3, s. 2; 2015, c. 2, s. 123
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nder this Part, including costs related to the recovery of outstanding amounts from producers who are in default under a repayment agreement and costs of receiving and dealing with applications for advances, administering advances and any other administrative services. Maximum contingent liability (5) The 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. Amounts withheld from advance (6) The administrator may, with the Minister’s approval, withhold amounts from an advance made to a producer for a purpose authorized under the advance guarantee agreement. 1997, c. 20, s. 5; 1999, c. 26, s. 42; 2006, c. 3, s. 3; 2008, c. 7, s. 2; 2015, c. 2, s. 124
Agricultural Marketing Programs Act — A-3.7 5.1
Agreement where guarantee already exists 5.1 (1) The 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 apply (2) Paragraph 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): (a) paragraphs 5(3)(c), (e), (f) and (h); (b) paragraphs 10(1)(g) and (h); (c) paragraphs 10(2)(b) and (c); and (d) paragraph 19(1)(c). 2006, c. 3, s. 4; 2008, c. 7, s. 3; 2015, c. 2, s. 125
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Obligations of administrators 6 A 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
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Emergency advance 7 (1) The 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 who (a) has 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; or (b) experiences 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 payment (2) When 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 amount (3) The maximum amount of the emergency advance is (a) in 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; or (b) in 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 apply (4) Paragraph 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): (a) paragraph 5(3)(e); (b) subsection 5(3.01); (c) paragraphs 10(1)(g) and (h); (d) paragraphs 10(2)(b) to (c); and (e) paragraph 19(1)(c) and subsection 19(3). (5) [Repealed, 2015, c. 2, s. 126] Security (6) The 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; 2015, c. 2, s. 126
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Payment of interest 9 (1) The Minister must, in relation to each producer, pay to the lender specified in an advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing 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: (a) the amounts of advances received by the producer during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and (b) the amounts of advances that are received by or attributed to all related producers during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and that are attributable to the producer under subsection (2). Attribution (2) If a producer is related to another producer, the amounts received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations. Interest on emergency advances (3) The Minister is not required to pay the interest for an emergency advance, unless the advance guarantee agreement provides for its payment. Reduction of principal (4) When 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; 2015, c. 2, s. 127
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d by the security referred to in section 12, or (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and (iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement; (b.1) if required by the advance guarantee agreement, to inform the administrator of the producer’s participation in any program listed in the schedule; (b.2) 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 to (i) the administrator, to the extent of the producer’s liability under section 22, and (ii) the Minister, to the extent of the producer’s liability under section 23; (c) 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; and (d) to 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. Waiver (2.1) The administrator may, with the Minister’s approval and subject to any conditions specified by the Minister, waive those requirements of a repayment agreement that are referred to in paragraph 2(a) in order to permit a producer to repay an advance under the agreement if the administrator is satisfied that the agricultural product in respect of which the advance has been made has not been disposed of by the producer. Terms and conditions governing emergency advances (3) Terms 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 information (4) The 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; 2015, c. 2, s. 128
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Unmarketable agricultural product 11 Subject to section 22, if an agricultural product for which a guaranteed advance is made ceases, in whole or in part, to be in marketable condition, through no fault of the producer, the producer becomes liable to repay to the administrator that made the advance, within the period specified in the advance guarantee agreement, the portion of the guaranteed advance that is attributable to the unmarketable portion of the agricultural product, together with the interest — other than the interest paid by the Minister under subsection 9(1) — accruing on that portion calculated from the date of the advance. 1997, c. 20, s. 11; 2006, c. 3, s. 7; 2015, c. 2, s. 129
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Security 12 An administrator that makes a guaranteed advance for an agricultural product to a producer in a program year shall take the security required by regulations made under paragraph 40(1)(f.2) for the amount of the producer’s liability under sections 22 and 23. 1997, c. 20, s. 12; 2006, c. 3, s. 7; 2015, c. 2, s. 130
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Security that includes animal — special case 13 If the security referred to in section 12 includes an agricultural product that is an animal raised in a particular area, the value of that agricultural product is considered to be 50%, or the percentage fixed by regulation, of the average price that in the Minister’s opinion will be payable to producers of that agricultural product in that area. 1997, c. 20, s. 13; 2006, c. 3, s. 8; 2011, c. 25, s. 17; 2015, c. 2, s. 131
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Amount of advance to be guaranteed 19 (1) Subject to subsection (3), the amount of an advance eligible for a guarantee under this Part is calculated by multiplying (a) the number of production units for which the advance is to be made by (b) the rate per production unit that is specified by the Minister 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. by (c) the rate obtained by subtracting the administrator’s percentage, as determined under the regulations, from 100%. Administrator’s percentage (1.1) The administrator’s percentage mentioned in paragraph (1)(c), as determined under the regulations, must not exceed 10%. If the regulations establish a method of calculating that percentage, when the calculation results in a percentage that is less than 3%, that percentage is deemed to be 3% and when the calculation results in a percentage that is greater than 10%, that percentage is deemed to be 10%. Rate per production unit (2) The 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. Exception (3) If, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule or the security referred to in section 12, the maximum amount of an advance eligible for a guarantee under this Part is (a) in the case when the advance is covered by such a program, the lesser of the amount calculated under subsection (1) and the percentage, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program; or (b) in the case when the advance is covered by such a security, the lesser of the amount calculated under subsection (1) and the amount of the value of that security. 1997, c. 20, s. 19; 2006, c. 3, s. 10; 2015, c. 2, s. 132
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Annual maximum guarantee for each producer 20 (1) Subject to subsection (1.1), the maximum amount of advances in any program year that are eligible for a guarantee under this Act is (a) for a particular agricultural product produced by a producer, the amount specified in the advance guarantee agreement for that agricultural product; and (b) for 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 periods (1.1) The 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. Attribution (2) If a producer is related to another producer, the amounts of advances received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations. 1997, c. 20, s. 20; 2006, c. 3, s. 11; 2015, c. 2, s. 133
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Circumstances constituting default 21 (1) For the purposes of this Part, a producer is in default under a repayment agreement if the producer (a) has not met all of their obligations under the agreement within 21 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the administrator’s opinion, adequate opportunity to meet the obligations, and requesting the producer to meet them; (b) has not met all of their obligations under the agreement at the end of the production period for which the advance was made; (c) 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; (c.1) becomes the subject of proceedings under the Companies’ Creditors Arrangement Act and has not met all of their obligations under the agreement; (c.2) has made an application under section 5 of the Farm Debt Mediation Act and has not met all of their obligations under the agreement; (d) 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; (d.1) is, in the administrator’s opinion, at fault for causing or contributing to a decrease in the value of the security taken by the administrator under section 12 and, as a result, in the administrator’s opinion, the value of the security is less than the value of the outstanding amount of the advance; or (e) provides 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 default (2) Subject to any regulations, if a default is impending, the Minister may, at the administrator’s request, order the default to be stayed for a specified period on any terms and conditions that the Minister may establish. Liability of producer (2.1) A producer in respect of whom a stay of default is ordered is liable to the administrator for the costs incurred by the administrator in relation to the stay of default, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4). When default ceases (3) A producer ceases to be in default on the full discharge of the producer’s liability under sections 22 and 23. Ineligibility period (4) An advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance from the administrator 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; 2015, c. 2, s. 134
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Liability of defaulting producer to administrator 22 A producer who is in default under a repayment agreement is liable to the administrator for (a) the outstanding amount of the guaranteed advance; (b) the interest at the rate specified in the repayment agreement on the outstanding amount of the advance, calculated from the date of the advance; (c) the costs, including legal costs, incurred by the administrator to recover the outstanding amounts and interest, if those costs are approved by the Minister, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4); and (d) any other outstanding amounts under the repayment agreement. 1997, c. 20, s. 22; 2015, c. 2, s. 135
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ts and costs owing; (d) any acknowledgment of the amounts, interest and costs owing made by the person, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act , the Farm Debt Mediation Act or any other legislation dealing with the payment of debts; or (e) the person’s performance of an obligation under the repayment agreement referred to in subsection (1). Period excluded (8) Any period in which it is prohibited to commence or continue an action or proceedings against the person to recover the amounts, interest and costs owing does not count in the calculation of a limitation or prescription period under this section. Enforcement proceedings (9) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. 1997, c. 20, s. 23; 1999, c. 26, s. 46; 2008, c. 7, s. 6; 2015, c. 2, s. 136
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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.
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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.
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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.
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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. 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. 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. 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.