• 1. (1) The definitions “crop” and “crop unit” in subsection 2(1) of the Agricultural Marketing Programs Act are repealed.

• (2) The definition “crop year” in subsection 2(1) of the English version of the Act is repealed.

• Marginal note:2001, c. 27, s. 203

  (3) The definitions “administrator”, “advance” and “producer” in subsection 2(1) of the Act are replaced by the following:

  “administrator”

  « agent d’exécution »

  “administrator” means one of the following organizations, if it has the power to sue and be sued in its own name:

  • (a) an organization of producers that is involved in marketing an agricultural product to which Part I applies;

  • (b) an organization, including the Board but not including 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 for which advances will be made; or

  • (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.

  “advance”

  « avance »

  “advance” means an advance payment to an eligible producer for an agricultural product.

  “producer”

  « producteur »

  “producer” means a producer of an agricultural product who is

  • (a) a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;

  • (b) a corporation a majority of whose voting shares are held by Canadian citizens or permanent residents;

  • (c) a cooperative a majority of whose members are Canadian citizens or permanent residents; or

  • (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.

  For the purposes of Parts I and IV, “producer” includes a person or entity mentioned in any of paragraphs (a) to (d) that is entitled to an agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor on a date specified for the purposes of this definition in an advance guarantee agreement.

• (4) The definition “agricultural product” in subsection 2(1) of the English version of the Act is replaced by the following:

  “agricultural product”

  « produit agricole »

  “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.

• (5) The definition campagne agricole in subsection 2(1) of the French version of the Act is replaced by the following:

  « campagne agricole »

  “production period”

  campagne agricole En ce qui concerne tel produit agricole, toute période d’au plus dix-huit mois — ou le nombre de mois supérieur fixé par le ministre — prévue par l’accord de garantie d’avance relativement à ce produit.

• (6) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  “production unit”

  « unité de production »

  “production unit”, in respect of an agricultural product, means the production unit specified in the advance guarantee agreement relating to the agricultural product.

• (7) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order:

  “production period”

  « campagne agricole »

  “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.

• (8) Subsection 2(2) of the Act is repealed.

2. Section 4 of the Act is replaced by the following:

Marginal note:1999, c. 26, s. 42

• 3. (1) Subsections 5(1.1) to (2) of the Act are replaced by the following:

  • Marginal note:Restriction

    (1.1) 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.

  • Marginal note:Conditions concerning the guarantee

    (1.2) 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.

  • Marginal note:Administrator to demonstrate ability

    (2) An administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement.

• (2) The portion of subsection 5(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Terms and conditions

    (3) 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

• (3) Paragraph 5(3)(e) of the Act is replaced by the following:

  • (e) to take steps, in accordance with the terms and conditions of the advance guarantee agreement, to ensure that, before an advance is made,

    • (i) 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 that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, and

    • (ii) 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, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable;

• (4) Section 5 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Exception

    (3.1) The terms described in paragraphs (3)(c) and (f) and subparagraph (3)(g)(i) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) and subparagraph (3)(g)(i) — are not required if the Minister and an administrator are the only parties to the agreement.

  • Marginal note:Schedule

    (3.2) 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.

  • Marginal note:Restriction

    (3.3) 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) Subsection 5(5) of the Act is replaced by the following:

  • Marginal note:Maximum contingent liability

    (5) The aggregate contingent liability of Her Majesty in relation to the principal outstanding under guarantees made under advance guarantee agreements must not at any time exceed $5 billion or the amount fixed by regulation.

  • Marginal note:Administrator’s percentage

    (6) The administrator’s percentage mentioned in paragraph (3)(g), as determined under the regulations, must be at least 1% and not more than 15%. If the regulations establish a method of calculating that percentage, the percentage is deemed to be 1% if the calculation results in a lower percentage, and 15% if the calculation results in a higher percentage.