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 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title This Act may be cited as the Agricultural Marketing Programs Act. Definitions The definitions in this subsection apply in this Act. administrator 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 to which Part I applies; or 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) advance means an advance payment to an eligible producer for an agricultural product. (avance) advance guarantee agreement means an agreement under section 5. (accord de garantie d’avance) 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 (produit agricole) Board[Repealed, 2011, c. 25, s. 16] crop[Repealed, 2006, c. 3, s. 1] crop unit[Repealed, 2006, c. 3, s. 1] crop year[Repealed, 2006, c. 3, s. 1] Her Majesty means Her Majesty in right of Canada. (Sa Majesté) 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) livestock means cattle, sheep, swine and bison and any other animals that may be designated by regulation. (bétail) marketing agency means an 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; or 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) [Repealed, 2011, c. 25, s. 16] Minister means the Minister of Agriculture and Agri-Food. (ministre) permit book[Repealed, 2011, c. 25, s. 16] price guarantee agreement means an agreement under section 28. (accord de garantie des prix) producer means a producer of an agricultural product who is a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act; a corporation that is controlled by one or more of the persons or entities referred to in paragraphs (a), (c) and (d); a cooperative a majority of whose members are Canadian citizens or permanent residents; or 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) 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) 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) 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) repayment agreement means an agreement under subsection 10(2). (accord de remboursement) 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. Related producers Producers are related for the purposes of this Act if they do not deal with each other at arm’s length. 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: the producer controls, directly or indirectly in any manner, the other producer; the producer is controlled, directly or indirectly in any manner, by the same person or group of persons as the other producer; the producer carries on a farming operation in partnership with the other producer; 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; any other circumstances set out in the regulations. 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. Purpose 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. Eligible agricultural products Subject to subsections (2) and (3), this Part applies only in respect of an agricultural product that meets the following criteria: the agricultural product is an 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, or honey 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; and 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 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 The Governor in Council may make regulations designating any agricultural product as being subject to this Part; and designating any breeding animals or classes of breeding animals as being subject to this Part and respecting any conditions related to that designation. Agreements to guarantee repayment of advances 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 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 setting out the obligations of the administrator in relation to the advances and their repayment. 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. 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. Administrator to demonstrate ability An administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement. 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 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; 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 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 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, 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 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 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 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; 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; [Repealed, 2015, c. 2, s. 124] to pay to the Minister any additional interest resulting from its failure to make payments required by paragraph (f); 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; 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 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. Specific terms and conditions An advance guarantee agreement may include any of the following terms and conditions governing advances and their repayment: the administrator must agree to make advances to producers solely in the areas specified in the agreement; the administrator must agree to make advances to producers solely in relation to the agricultural product specified in the agreement; the producer must agree to inform the administrator of the producer’s participation in any program listed in the schedule; and the producer must agree to assign, if in default, any amounts payable to the producer under a program listed in the schedule to the administrator, to the extent of the producer’s liability under section 22, and the Minister, to the extent of the producer’s liability under section 23. 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. 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. 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. 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. 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. 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. 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. Agreement where guarantee already exists 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 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): paragraphs 5(3)(c), (e), (f) and (h); paragraphs 10(1)(g) and (h); paragraphs 10(2)(b) and (c); and paragraph 19(1)(c). Obligations of administrators A guarantee given to an administrator is not effective unless the administrator complies with this Act and the advance guarantee agreement. Emergency advance 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 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 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 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 The maximum amount of the emergency advance is 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 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). 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): paragraph 5(3)(e); subsection 5(3.01); paragraphs 10(2)(b) to (c); and paragraph 19(1)(c) and subsection 19(3). [Repealed, 2015, c. 2, s. 126] 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). [Repealed, 1999, c. 26, s. 44] Payment of interest 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: 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 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 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 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 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. Eligibility requirements for producers For a producer to be eligible for a guaranteed advance during a program year, 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; 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; if the producer is a corporation with only one shareholder, 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 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; if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons, 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 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; 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 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; 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 that 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 the producer must meet any additional requirements prescribed by regulation. 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. Eligible producers must make repayment agreements An eligible producer must make a repayment agreement with the administrator under which the producer agrees to repay the advance 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, 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, 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, by any other means prescribed by the regulations, or by paying the administrator using a combination of the means described in subparagraphs (i) to (vi); 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; to ensure that 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 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 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; 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 to the 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; and 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 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 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 The producer must provide to the administrator any information that it requests for the purpose of applying this Act. Unmarketable 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. 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. Security 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. [Repealed, 2011, c. 25, s. 17] [Repealed, 2006, c. 3, s. 10] Amount of advance to be guaranteed Subject to subsection (3), the amount of an advance eligible for a guarantee under this Part is calculated by multiplying the number of production units for which the advance is to be made by 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. the rate obtained by subtracting the administrator’s percentage, as determined under the regulations, from 100%. 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%. 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. 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 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 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. Annual maximum guarantee for each producer Subject to subsection (1.1), the maximum amount of advances in any program year that are eligible for a guarantee under this Act is for a particular agricultural product produced by a producer, the amount specified in the advance guarantee agreement for that agricultural product; and 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 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. 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. Circumstances constituting default For the purposes of this Part, a producer is in default under a repayment agreement if the producer 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; 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; becomes the subject of proceedings under the Companies’ Creditors Arrangement Act and has not met all of their obligations under the agreement; has made an application under section 5 of the Farm Debt Mediation Act and has not met all of their obligations under the agreement; 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; 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 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 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 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 A producer ceases to be in default on the full discharge of the producer’s liability under sections 22 and 23. Ineligibility period 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. Liability of defaulting producer to administrator A producer who is in default under a repayment agreement is liable to the administrator for the 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; 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 any other outstanding amounts under the repayment agreement. Payments to be made by Minister If the producer is in default under the repayment agreement and the Minister receives a request for payment from the administrator or lender to whom the guarantee is made, the Minister must, in accordance with the advance guarantee agreement and subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as the case may be, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance. Payments may be made by Minister The Minister may, subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as specified in the advance guarantee agreement, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance, if the producer is in default under the repayment agreement and has made an application under section 5 of the Farm Debt Mediation Act; or the producer has been in default under the repayment agreement for the period specified in the advance guarantee agreement. Subrogation The Minister is, to the extent of any payment under subsection (1) or (1.1), subrogated to the administrator’s rights against the producer in default and against persons who are liable under paragraphs 10(1)(c) and (d) and may maintain an action, in the name of the administrator or in the name of the Crown, against that producer and those persons. Recovery of interest and costs The 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 or prescription period Subject to the other provisions of this section, no action or proceedings may be taken by the Minister to recover any amounts, interest and costs owing after the six year period that begins on the day on which the Minister is subrogated to the administrator’s rights. Deduction, set-off or compensation The amounts, interest and costs owing may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against any sum of money that may be due or payable by Her Majesty in right of Canada to the person or their estate or succession. Acknowledgment of liability If a person acknowledges liability for the amounts, interest and costs owing, whether before or after the end of the limitation or prescription period, the time during which the limitation or prescription period has run before the acknowledgment of liability does not count in the calculation of the limitation or prescription period and an action or proceedings to recover the amounts, interest and costs may be taken within six years after the day of the acknowledgment of liability. Types of acknowledgment An acknowledgement of liability means a written promise to pay the amounts, interest and costs owing, signed by the person or his or her agent or other representative; a written acknowledgment of the amounts, interest and costs owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; a payment, even in part, by the person or his or her agent or other representative of any of the amounts, interests and costs owing; 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 the person’s performance of an obligation under the repayment agreement referred to in subsection (1). Period excluded 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 This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. [Repealed, 2011, c. 25, s. 18] Payments 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. 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. Conditions for price guarantee agreements The Minister may, with the approval of the Minister of Finance, establish conditions under which price guarantee agreements may be made. Minister may make agreements Once the Minister has established the conditions, the Minister may make a price guarantee agreement with a marketing agency. Contents of agreement The price guarantee agreement must provide that the Minister is to pay amounts based on the difference obtained by subtracting the average wholesale price of an agricultural product from the 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; and the marketing agency is to comply with this Part and any other terms and conditions specified in the agreement. Requirements for marketing agency The cooperative plan administered by the marketing agency must apply to a significant portion of the producers in the area where the plan applies; or 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 The cooperative plan must be an agreement or arrangement for marketing that provides for an 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; and 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. Production and delivery of product The agricultural product must be produced by the producer who received the initial payment during the period specified under paragraph 28(4)(d); and delivered during that period to the marketing agency under a single cooperative plan. Discontinuing delivery During 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 agreement The 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. Powers of Minister The 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; and store, transport or process agricultural products, or make contracts for their storage, transportation or processing. Limitation Except 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. Cost recovery regulations For 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] Crown debts assignable The 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; and for the purposes of Part II, an amount payable by the Minister under a price guarantee agreement. Information relating to advance guarantees An 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 administrator gives false or misleading information to the Minister; or fails to disclose any relevant information to the Minister. Information relating to guaranteed advances A 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 person gives false or misleading information to an administrator or to the Minister; or fails to disclose any relevant information to an administrator or to the Minister. [Repealed, 2015, c. 2, s. 137] Information relating to price guarantee agreements A 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 agency Information relating to payments A person commits an offence if, for the purpose of obtaining a payment under Part II, the person gives false or misleading information to a marketing agency or to the Minister; or fails to disclose any relevant information to a marketing agency or to the Minister. Non-compliance with information requirements A person who does not comply with a requirement to provide information under paragraph 31(1)(d) commits an offence. Evidence of requirements In 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. Punishment A producer, administrator, marketing agency or other person who commits an offence under this Act is if 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;

and in 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 partnership A 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 partnerships If 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 period A prosecution under this Act may be instituted no later than five years after the act or omission giving rise to the prosecution occurred. Governor in Council regulations for the purposes of the definition administrator in subsection 2(1), prescribing criteria for determining whether organizations represent producers in an area, or what 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); defining the meanings of the words and expressions control and controlled by for the purposes of paragraphs 3(2)(a) and (b); prescribing, for the purposes of paragraph 3(2)(e), circumstances in which producers are presumed to be related; for the purpose of subsection 4.1(1) and any regulations made under subsection 4.1(3), prescribing criteria for establishing an average price for an agricultural product, or determining whether an agricultural product is not processed or not processed beyond what is necessary to store it and prevent spoilage; 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); [Repealed, 2015, c. 2, s. 138] fixing a percentage for the purposes of each of paragraphs 7(3)(a) and (b), section 13 and subsection 19(2); for the purposes of subsections 9(2) and 20(2), fixing the percentage or percentages of the amounts received by, or attributed to, related producers that are to be attributable to a producer, which percentage or percent­ages may differ depending on the type of producer or related producer; for the purposes of subsections 9(2) and 20(2), respecting the method of calculating the amounts received by, or attributed to, related producers that are to be attributable to a producer, which method of calculation may differ depending on the type of producer or related producer; 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; respecting, for the purposes of subparagraphs 10(1)(c)(ii) and (d)(ii), guarantors or classes of guarantors and the security or classes of security that must be provided by guarantors; 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); prescribing, for the purposes of subparagraph 10(2)(a)(vi), any means that may be used to repay an advance and the terms and conditions respecting those repayments; for the purposes of paragraph 10(2)(c), defining overpayment; respecting the security or classes of security that administrators are required to take for the purposes of section 12; determining, for the purposes of paragraph 19(1)(c), the administrator’s percentage or establishing a method of calculating it, which percentage may differ among administrators depending on their experience and past performance; respecting stays of default under subsection 21(2); 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); prescribing anything that is to be prescribed under this Act; and generally, for carrying out the purposes and provisions of this Act. Recommendation Regulations made under paragraph (1)(c) or (e) may be made only on the Minister’s recommendation with the concurrence of the Minister of Finance. Different requirements for security Regulations 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. Annual report At 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 review Every 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. Emergency advances The 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 report The 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. [Repeals] [Repealed before coming into force, 2011, c. 25, s. 20] Definition 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 transferred All 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. References Every 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 affairs The Minister may do anything necessary for or incidental to closing out the affairs of the Board. Legal proceedings against Her Majesty Any 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 Majesty Any 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 proceedings Any 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).] No agreements after December 31, 1996 No agreements may be made under section 3 of the Agricultural Products Cooperative Marketing Act after December 31, 1996. No guarantees of advances after March 31, 1997 The 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. Defaults For 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. [Repealed, 2011, c. 25, s. 21] For 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. [Amendments] Coming into force — general This Act, except sections 44 to 46, comes into force on January 1, 1997. Coming into force — sections 44 to 46 Sections 44 to 46 come into force on a day or days to be fixed by order of the Governor in Council. [Note: Section 44 in force May 15, 2014, see SI/2014-47; section 45 in force May 15, 2014, see SI/2014-48.] AgriStability Production Insurance Program Programme d’assurance stabilisation des revenus agricoles Sections 42 to 47 apply to crop years beginning on or after April 1, 1998. Transitional The following definitions apply in this section. new Act means the Agricultural Marketing Programs Act as it reads on the day on which this Act comes into force. (nouvelle loi) old Act means the Agricultural Marketing Programs Act as it read immediately before the day on which this Act comes into force. (ancienne loi) Old Act continues to apply The 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 Act Amounts 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 advances Amounts 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 advances A 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 regulations For 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. Transitional provision The 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. However, 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. new Act means the Agricultural Marketing Programs Act as it reads on the day on which this section comes into force. (nouvelle loi) old Act means the Agricultural Marketing Programs Act as it read immediately before the day on which this section comes into force. (ancienne loi) The old Act continues to apply on and after the day on which this section comes into force with respect to advance guarantee agreements and repayment agreements entered into under the old Act that are still in existence on that day. Amounts 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 section comes into force are to be taken into account for the purposes of applying the new Act. Amounts 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 section comes into force are to be taken into account for the purposes of applying the new Act.