Agricultural Marketing Programs Act
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 Acts
Bills that amended this Act0
No published amendment links yet for this Act.
Sections387
- 1Short title
This Act may be cited as the Agricultural Marketing Programs Act.
- 2Definitions
- 2(1)
The definitions in this subsection apply in this Act.
- 2(1)[p3]
administrator means one of the following organizations, if it has the power to sue and be sued in its own name:
- 2(1)[p3](a)
an organization of producers that is involved in marketing an agricultural product to which Part I applies;
- 2(1)[p3](b)
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 to which Part I applies; or
- 2(1)[p3](c)
an 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. (agent d’exécution)
- 2(1)[p7]
advance means an advance payment to an eligible producer for an agricultural product. (avance)
- 2(1)[p8]
advance guarantee agreement means an agreement under section 5. (accord de garantie d’avance)
- 2(1)[p9]
agricultural 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. (produit agricole)
- 2(1)[p10]Repealed
Board[Repealed, 2011, c. 25, s. 16]
- 2(1)[p11]Repealed
crop[Repealed, 2006, c. 3, s. 1]
- 2(1)[p12]Repealed
crop unit[Repealed, 2006, c. 3, s. 1]
- 2(1)[p13]Repealed
crop year[Repealed, 2006, c. 3, s. 1]
- 2(1)[p14]
Her Majesty means Her Majesty in right of Canada. (Sa Majesté)
- 2(1)[p15]
lender 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. (prêteur)
- 2(1)[p16]
livestock means cattle, sheep, swine and bison and any other animals that may be designated by regulation. (bétail)
- 2(1)[p17]
marketing agency means
- 2(1)[p17](a)
an association of producers whose object is the marketing, under a cooperative plan, of agricultural products produced by the producers;
- 2(1)[p17](b)
a person engaged in the processing of agricultural products for marketing under a cooperative plan; or
- 2(1)[p17](c)
a person authorized by one or more associations or persons mentioned in paragraphs (a) and (b) to market agricultural products under a single cooperative plan. (agence de commercialisation)
- 2(1)[p17](d)Repealed
[Repealed, 2011, c. 25, s. 16]
- 2(1)[p22]
Minister means the Minister of Agriculture and Agri-Food. (ministre)
- 2(1)[p23]Repealed
permit book[Repealed, 2011, c. 25, s. 16]
- 2(1)[p24]
price guarantee agreement means an agreement under section 28. (accord de garantie des prix)
- 2(1)[p25]
producer means a producer of an agricultural product who is
- 2(1)[p25](a)
a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;
- 2(1)[p25](b)
a corporation that is controlled by one or more of the persons or entities referred to in paragraphs (a), (c) and (d);
- 2(1)[p25](c)
a cooperative a majority of whose members are Canadian citizens or permanent residents; or
- 2(1)[p25](d)
a 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. (producteur)
- 2(1)[p30]
production 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. (campagne agricole)
- 2(1)[p31]
production unit, in respect of an agricultural product, means the production unit specified in the advance guarantee agreement relating to the agricultural product. (unité de production)
- 2(1)[p32]
program year, in respect of an advance, means the period that is specified in the advance guarantee agreement and the repayment agreement that relates to the advance. (année de programme)
- 2(1)[p33]
repayment agreement means an agreement under subsection 10(2). (accord de remboursement)
- 2(2)Interpretation
For the purpose of paragraph (b) of the definition producer in subsection (1), a corporation is controlled by a person or entity if the corporation is controlled in any manner that results in control in fact, whether directly through the ownership of voting shares or indirectly through a trustee or other person who administers the property of another, a legal representative, an agent or mandatary or other intermediary acting as nominee or otherwise, a trust, a contract, the ownership of a corporation or otherwise.
- 3Related producers
- 3(1)
Producers are related for the purposes of this Act if they do not deal with each other at arm’s length.
- 3(2)Presumption
In the absence of proof to the contrary, a producer is presumed to be related to another producer in any of the following circumstances:
- 3(2)(a)
the producer controls, directly or indirectly in any manner, the other producer;
- 3(2)(b)
the producer is controlled, directly or indirectly in any manner, by the same person or group of persons as the other producer;
- 3(2)(c)
the producer carries on a farming operation in partnership with the other producer;
- 3(2)(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;
- 3(2)(e)
any other circumstances set out in the regulations.
- 3(3)Definition of group of persons
For the purposes of subsection (2), group of persons means a producer that is a partnership, cooperative or other association of persons.
- 4Purpose
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.
- 4.1Eligible 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:
- 4.1(1)(a)
the agricultural product is
- 4.1(1)(a)(i)
an animal that is raised in Canada or the fur pelt of such an animal,
- 4.1(1)(a)(ii)
a plant that is grown in Canada or the product of such a plant, or
- 4.1(1)(a)(iii)
honey or maple syrup that is produced in Canada;
- 4.1(1)(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
- 4.1(1)(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.
- 4.1(2)Breeding animals
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.
- 4.1(3)Regulations
The Governor in Council may make regulations
- 4.1(3)(a)
designating any agricultural product as being subject to this Part; and
- 4.1(3)(b)
designating any breeding animals or classes of breeding animals as being subject to this Part and respecting any conditions related to that designation.
- 5Agreements to guarantee repayment of advances
- 5(1)
Subject 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 of
- 5(1)(a)
guaranteeing 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; and
- 5(1)(b)
setting out the obligations of the administrator in relation to the advances and their repayment.
- 5(1.1)Restriction
An 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.
- 5(1.2)Conditions concerning the guarantee
If 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.
- 5(2)Administrator to demonstrate ability
An administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement.
- 5(3)Terms and conditions
In 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 agrees
- 5(3)(a)
to 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;
- 5(3)(b)
to withhold amounts as provided in subparagraph 10(2)(a)(i) in cases where the administrator is the buyer;
- 5(3)(c)
to make the advances from money borrowed from a lender;
- 5(3)(d)
to ensure that the interest rate on the money borrowed by the administrator will not exceed the rate specified in the advance guarantee agreement;
- 5(3)(e)
to take steps, in accordance with the advance guarantee agreement, to ensure that, before an advance is made
- 5(3)(e)(i)
in the case of an agricultural product that is storable,
- 5(3)(e)(i)(A)
it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or
- 5(3)(e)(i)(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,
- 5(3)(e)(ii)
in the case of an agricultural product that is not storable,
- 5(3)(e)(ii)(A)
it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and 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, or
- 5(3)(e)(ii)(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
- 5(3)(e)(iii)
despite 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;
- 5(3)(f)
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;
- 5(3)(g)Repealed
[Repealed, 2015, c. 2, s. 124]
- 5(3)(h)
to pay to the Minister any additional interest resulting from its failure to make payments required by paragraph (f);
- 5(3)(h.1)
after the administrator receives the payment of interest referred to in subparagraph 10(2)(a)(v), to pay to the Minister, within the period specified in the advance guarantee agreement, any interest paid by the Minister under subsection 9(1) on the amount of an advance that is repaid by a producer to the administrator without proof that the agricultural product has been sold;
- 5(3)(i)
to pay to the Minister, within the period specified in the advance guarantee agreement, the 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) or (1.1); and
- 5(3)(j)
to assign, on the Minister’s request and within any period that the Minister specifies, its rights and obligations under the advance guarantee agreement to any entity that the Minister specifies, if the administrator has not met all of its obligations under the agreement and the Minister has sent a notice to the administrator stating that the administrator has had, in the Minister’s opinion, adequate opportunity to meet the obligations, and requesting the administrator to meet them.
- 5(3.01)Specific terms and conditions
An advance guarantee agreement may include any of the following terms and conditions governing advances and their repayment:
- 5(3.01)(a)
the administrator must agree to make advances to producers solely in the areas specified in the agreement;
- 5(3.01)(b)
the administrator must agree to make advances to producers solely in relation to the agricultural product specified in the agreement;
- 5(3.01)(c)
the producer must agree to inform the administrator of the producer’s participation in any program listed in the schedule; and
- 5(3.01)(d)
the producer must agree to assign, if in default, any amounts payable to the producer under a program listed in the schedule to
- 5(3.01)(d)(i)
the administrator, to the extent of the producer’s liability under section 22, and
- 5(3.01)(d)(ii)
the Minister, to the extent of the producer’s liability under section 23.
- 5(3.02)Designation by Minister
The Minister may designate, in the advance guarantee agreement with the administrator, agricultural products or classes of agricultural products with respect to which an amount of an advance may be repaid, without proof that the agricultural product has been sold, before the expiry of the production period for which the advance was made.
- 5(3.1)Exception
The terms described in paragraphs (3)(c) and (f) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) — are not required if the Minister and an administrator are the only parties to the agreement.
- 5(3.2)Schedule
The 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.
- 5(3.3)Restriction
An 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.
- 5(4)Recovery of costs
The administrator may, subject to any terms and conditions of the advance guarantee agreement, charge fees to producers for the purpose of recovering any costs under 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.
- 5(5)Maximum contingent liability
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.
- 5(6)Amounts withheld from advance
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.
- 5.1Agreement 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.
- 5.1(2)Provisions do not apply
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):
- 5.1(2)(a)
paragraphs 5(3)(c), (e), (f) and (h);
- 5.1(2)(b)
paragraphs 10(1)(g) and (h);
- 5.1(2)(c)
paragraphs 10(2)(b) and (c); and
- 5.1(2)(d)
paragraph 19(1)(c).
- 6Obligations of administrators
A guarantee given to an administrator is not effective unless the administrator complies with this Act and the advance guarantee agreement.
- 7Emergency 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
- 7(1)(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
- 7(1)(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.
- 7(2)Time limit for payment
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.
- 7(3)Maximum amount
The maximum amount of the emergency advance is
- 7(3)(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
- 7(3)(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).
- 7(4)Provisions do not apply
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):
- 7(4)(a)
paragraph 5(3)(e);
- 7(4)(b)
subsection 5(3.01);
- 7(4)(c)
paragraphs 10(1)(g) and (h);
- 7(4)(d)
paragraphs 10(2)(b) to (c); and
- 7(4)(e)
paragraph 19(1)(c) and subsection 19(3).
- 7(5)Repealed
[Repealed, 2015, c. 2, s. 126]
- 7(6)Security
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).
- 8Repealed
[Repealed, 1999, c. 26, s. 44]
- 9Payment 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:
- 9(1)(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
- 9(1)(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).
- 9(2)Attribution
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.
- 9(3)Interest on emergency advances
The Minister is not required to pay the interest for an emergency advance, unless the advance guarantee agreement provides for its payment.
- 9(4)Reduction of principal
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.
- 10Eligibility requirements for producers
- 10(1)
For a producer to be eligible for a guaranteed advance during a program year,
- 10(1)(a)
the Minister must determine, taking into account any criteria prescribed by regulation, that the producer continuously owns the agricultural product, is responsible for marketing it and either is or was producing it;
- 10(1)(b)
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;
- 10(1)(c)
if the producer is a corporation with only one shareholder,
- 10(1)(c)(i)
the individual who makes the application for an advance on the producer’s behalf must have attained the age of majority in the province where the producer’s farming operation is carried on, and
- 10(1)(c)(ii)
the shareholder must agree in writing to be personally liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for any of the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;
- 10(1)(d)
if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,
- 10(1)(d)(i)
the individual who makes the application for an advance on behalf of the corporation, partnership, cooperative or association must have attained the age of majority in the province where the producer’s farming operation is carried on, and
- 10(1)(d)(ii)
each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;
- 10(1)(e)
the producer and, to the extent provided in the advance guarantee agreement, any related producers must not be in default under a repayment agreement;
- 10(1)(f)
the producer must not be ineligible under subsection 21(4);
- 10(1)(f.1)
the producer must demonstrate to the administrator that they are capable of meeting their obligations under the repayment agreement and that they are meeting all of their obligations under any other repayment agreement;
- 10(1)(g)
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;
- 10(1)(h)
the producer must demonstrate that
- 10(1)(h)(i)
in the case of an agricultural product that is storable,
- 10(1)(h)(i)(A)
it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or
- 10(1)(h)(i)(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,
- 10(1)(h)(ii)
in the case of an agricultural product that is not storable,
- 10(1)(h)(ii)(A)
it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and 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, or
- 10(1)(h)(ii)(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
- 10(1)(h)(iii)
despite 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; and
- 10(1)(i)
the producer must meet any additional requirements prescribed by regulation.
- 10(1.1)Sharing security
For the purpose of paragraph (1)(g), the producer’s eligibility is not affected by the administrator sharing the security referred to in section 12 with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.
- 10(2)Eligible producers must make repayment agreements
An eligible producer must make a repayment agreement with the administrator under which the producer agrees
- 10(2)(a)
to repay the advance
- 10(2)(a)(i)
by 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,
- 10(2)(a)(ii)
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,
- 10(2)(a)(iii)
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,
- 10(2)(a)(iv)
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,
- 10(2)(a)(v)
if the producer repays to the administrator an amount of the advance without proof that the agricultural product has been sold and that amount is greater than the amount prescribed by the regulations, by paying to the administrator, in accordance with the terms and conditions specified in the repayment agreement, the amount of interest owed under that agreement on the difference obtained by subtracting that prescribed amount from that repaid amount,
- 10(2)(a)(vi)
by any other means prescribed by the regulations, or
- 10(2)(a)(vii)
by paying the administrator using a combination of the means described in subparagraphs (i) to (vi);
- 10(2)(a.1)
if the repayment agreement is in respect of an agricultural product designated by the Minister in the advance guarantee agreement, or an agricultural product in a class of agricultural products that is so designated, to repay the amount of the advance with respect to that agricultural product, with or without proof that it has been sold, before the expiry of the production period for which the advance was made;
- 10(2)(b)
to ensure that
- 10(2)(b)(i)
in the case of an agricultural product that is storable,
- 10(2)(b)(i)(A)
it is of marketable quality and will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or
- 10(2)(b)(i)(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,
- 10(2)(b)(ii)
in the case of an agricultural product that is not storable,
- 10(2)(b)(ii)(A)
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 and 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, or
- 10(2)(b)(ii)(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
- 10(2)(b)(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;
- 10(2)(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;
- 10(2)(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
- 10(2)(b.2)(i)
the administrator, to the extent of the producer’s liability under section 22, and
- 10(2)(b.2)(ii)
the Minister, to the extent of the producer’s liability under section 23;
- 10(2)(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
- 10(2)(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.
- 10(2.1)Waiver
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.
- 10(3)Terms and conditions governing emergency advances
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.
- 10(4)Required information
The producer must provide to the administrator any information that it requests for the purpose of applying this Act.
- 11Unmarketable agricultural product
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.
- 12Security
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.
- 13Security that includes animal — special case
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.
- 14Repealed
[Repealed, 2011, c. 25, s. 17]
- 15Repealed
[Repealed, 2006, c. 3, s. 10]
- 16Repealed
[Repealed, 2011, c. 25, s. 17]
- 17Repealed
[Repealed, 2011, c. 25, s. 17]
- 18Repealed
[Repealed, 2011, c. 25, s. 17]
- 19Amount 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 by by
- 19(1)(a)
the number of production units for which the advance is to be made
- 19(1)(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.
- 19(1)(c)
the rate obtained by subtracting the administrator’s percentage, as determined under the regulations, from 100%.
- 19(1.1)Administrator’s percentage
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%.
- 19(2)Rate per production unit
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.
- 19(3)Exception
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
- 19(3)(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
- 19(3)(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.
- 20Annual 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