Agricultural Marketing Programs Regulations (SOR/99-295)

Regulations are current to 2017-11-20 and last amended on 2016-02-05. Previous Versions

Agricultural Marketing Programs Regulations

SOR/99-295

AGRICULTURAL MARKETING PROGRAMS ACT

Registration 1999-06-23

Agricultural Marketing Programs Regulations

P.C. 1999-1186  1999-06-23

His Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food and the Treasury Board, pursuant to subsection 40(1) of the Agricultural Marketing Programs ActFootnote a, hereby makes the annexed Agricultural Marketing Programs Regulations.

Interpretation

 The following definitions apply in these Regulations.

Act

Act means the Agricultural Marketing Programs Act. (Loi)

financial institution

financial institution has the same meaning as in section 2 of the Bank Act. (institution financière)

  • SOR/2016-7, s. 1.

Presumption — Related Producers

  •  (1) For the purposes of paragraph 3(2)(e) of the Act, a producer is presumed to be related to another producer in any of the following circumstances:

    • (a) one of the producers is the spouse or common-law partner of the other producer;

    • (b) one of the producers owns at least 25% of the voting shares of the other producer;

    • (c) one of the producers owns at least 25% of the voting shares of a corporation that directly or through any other corporation owns 25% of the voting shares of the other producer; and

    • (d) one of the producers is entitled to 25% or more of the profits or revenues of the other producer.

  • (2) For the purposes of paragraph (1)(a), common-law partner means an individual who has been cohabiting with a producer in a conjugal relationship for a period of at least one year.

  • SOR/2016-7, s. 1.

Prescribed Criteria

 The following are prescribed criteria for the purposes of paragraph 4.1(1)(b) of the Act:

  • (a) historical farm gate values;

  • (b) wholesale prices for the agricultural product;

  • (c) trade data in respect of the agricultural product, including average import and export prices;

  • (d) in the case of crops, industry expectations of crop size and quality, planted acreage and the extent of any crop holdings in storage;

  • (e) exchange rates;

  • (f) regional market conditions; and

  • (g) the expected retail price for the agricultural product as demonstrated by data supplied to the Minister.

  • SOR/2006-293, s. 1.

 For the purposes of paragraph 4.1(1)(c) of the Act, the following are prescribed criteria for determining whether an agricultural product is not processed or not processed beyond what is necessary to store it and prevent spoilage:

  • (a) in the case of an animal referred to in subparagraph 4.1(1)(a)(i) of the Act, it is alive;

  • (b) in the case of a plant referred to in subparagraph 4.1(1)(a)(ii) of the Act, it is in the state in which it grew except for any alteration that may have occurred through harvesting or, if perishable, through storage and prevention of spoilage – with or without the addition of a preserving agent – in a controlled atmosphere or by refrigeration or freezing; and

  • (c) in the case of a product of a plant referred to in subparagraph 4.1(1)(a)(ii) of the Act, it is a part of a plant that is in its harvested state otherwise unaltered except, if perishable, through storage and prevention of spoilage – with or without the addition of a preserving agent – in a controlled atmosphere or by refrigeration or freezing.

  • SOR/2006-293, s. 1.

Designations

 For the purposes of the definition livestock in subsection 2(1) of the Act, rabbit, red deer, boar, goat and elk are designated as livestock.

  • SOR/2016-7, s. 2.

 Cervid antler velvet and bees are designated as agricultural products that are subject to Part I of the Act.

  • SOR/2016-7, s. 2.

 The following classes of breeding animals are designated as being subject to Part I of the Act:

  • (a) cattle, goats and sheep, if they are intended to be sold during the production period for which the advance is made; and

  • (b) hogs that are

    • (i) less than 12 months old, if they are intended to be sold for breeding purposes during the production period for which the advance is made, or

    • (ii) more than 10 months old, if they are intended to be sold for purposes other than for breeding during the production period for which the advance is made.

  • SOR/2016-7, s. 2.

Ownership and Responsibility for Marketing

 For the purposes of paragraph 10(1)(a) of the Act, the following are prescribed criteria for determining whether a producer ceases to own an agricultural product or ceases to be responsible for marketing an agricultural product:

  • (a) the agricultural product has been sold or processed; and

  • (b) the agricultural product – other than a horticultural crop, maple syrup or honey – has been placed in a pool.

  • SOR/2006-293, s. 2.

Administrator’s Percentage

  •  (1) For the purposes of paragraph 19(1)(c) of the Act, the administrator’s percentage is 3% if they have not completed at least one program year.

  • (2) For the purposes of paragraph 19(1)(c) of the Act, the administrator’s percentage shall be calculated using the five most recently completed program years, or if an administrator has completed at least one program year but less than five program years, using all of the completed program years, in accordance with the following formula:

    (A / B) × 100

    where

    A
    is the sum of the total of the outstanding principal balances of producers who are in default in each of those program years calculated 10 months after the completion of each program year; and
    B
    is the sum of the total principal amount advanced in each of those program years.
  • (3) For the purposes of element A, calculation of the outstanding principal balances shall exclude amounts owed by a deceased producer who is in default or by a producer who is in default and who has been deemed legally incapable of making decisions.

  • SOR/2006-293, s. 3;
  • SOR/2016-7, s. 3.

 [Repealed, SOR/2016-7, s. 3]

Attributable Percentages for Related Producers

  •  (1) For the purposes of subsections 9(2) and 20(2) of the Act, the amounts received by, or attributed to, related producers are attributable in the following manner:

    • (a) if both producers are individuals, each producer is attributed 100%;

    • (b) if one producer is an individual and the other producer is a partnership, the individual is attributed the percentage of their direct or indirect entitlement to the profits of the partnership;

    • (c) if one producer is an individual and the other producer is a corporation, the individual is attributed the percentage of the voting shares that the individual owns, holds or controls directly or indirectly in the corporation;

    • (d) if one producer is an individual and the other is a cooperative, the individual is attributed the percentage of their direct or indirect entitlement to the revenue or profits of the cooperative;

    • (e) in the case of two producers that are not individuals and that are related under paragraph 3(2)(d) of the Act, each producer is attributed 100%;

    • (f) in the case of two producers that are related due to circumstances other than those set out in paragraph 3(2)(d) of the Act, if one producer is a corporation and the other producer is not an individual, the other producer is attributed the percentage of voting shares that it owns, holds or controls directly or indirectly in the corporation; and

    • (g) in the case of two producers that are related due to circumstances other than those set out in paragraph 3(2)(d) of the Act, if one producer is a cooperative or partnership and the other producer is not an individual, the other producer is attributed the percentage of their direct or indirect entitlement to the profits or revenues of the cooperative or partnership.

  • (2) For the purposes of this section, a producer is not to be attributed the same advance more than once either directly or indirectly.

  • (3) If a producer is a partnership, corporation or cooperative, that producer is not to be attributed any amount received by a related producer that is an individual.

  • SOR/2016-7, s. 4.

Limitation for Cash Repayments Without Proof of Sale of the Agricultural Product

 For the purposes of subparagraph 10(2)(a)(v) of the Act, the amount prescribed is the amount that is the greater of

  • (a) 10% of the advance, and

  • (b) $10,000.

  • SOR/2006-293, s. 4;
  • SOR/2016-7, s. 5.
 
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