Agricultural Marketing Programs Act

Marginal note:Amount of advance to be guaranteed

• 19 (1) Subject to subsection (3), the amount of an advance eligible for a guarantee under this Part is calculated by multiplying

  • (a) the number of production units for which the advance is to be made

  by

  • (b) the rate per production unit that is specified by the Minister for the agricultural product for the production period for which the advance is made, or for a specified portion of the production period for which the advance is made.

  by

  • (c) the rate obtained by subtracting the administrator’s percentage, as determined under the regulations, from 100%.

• Marginal note:Administrator’s percentage

  (1.1) The administrator’s percentage mentioned in paragraph (1)(c), as determined under the regulations, must not exceed 10%. If the regulations establish a method of calculating that percentage, when the calculation results in a percentage that is less than 3%, that percentage is deemed to be 3% and when the calculation results in a percentage that is greater than 10%, that percentage is deemed to be 10%.

• Marginal note:Rate per production unit

  (2) The rate per production unit may be specified for a particular agricultural product in a particular area, but it must not exceed 50%, or the percentage fixed by regulation, of the average price that in the Minister’s opinion will be payable to producers of the agricultural product in that area.

• Marginal note:Exception

  (3) If, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule or the security referred to in section 12, the maximum amount of an advance eligible for a guarantee under this Part is

  • (a) in the case when the advance is covered by such a program, the lesser of the amount calculated under subsection (1) and the percentage, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program; or

  • (b) in the case when the advance is covered by such a security, the lesser of the amount calculated under subsection (1) and the amount of the value of that security.