Farm Income Protection Act (S.C. 1991, c. 22)

Short Title

Marginal note:Short title

1 This Act may be cited as the Farm Income Protection Act.

Interpretation

Marginal note:Definitions

2 In this Act,

agreement

agreement, unless the context indicates otherwise, means an agreement entered into under subsection 4(1); (accord)

agricultural product

agricultural product means

• (a) an animal, a plant or an animal or plant product, or

• (b) a product, including any food or drink, that is wholly or partly derived from an animal or a plant; (produit agricole)

crop insurance program

crop insurance program means a program for the insurance of specified agricultural products against loss from natural causes that is established by the laws of a province and administered by the province; (assurance-récolte)

financial institution

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

gross revenue insurance program

gross revenue insurance program means a program that combines the protection offered by a crop insurance program and the protection offered by a revenue insurance program; (régime universel)

Minister

Minister means the Minister of Agriculture and Agri-Food; (ministre)

net income stabilization account program

net income stabilization account program means a program under which

• (a) a participating producer elects to contribute to an account established pursuant to an agreement and to which Canada and the provinces that are parties to the agreement contribute, and

• (b) that enables payments to be made to that producer from that account on terms and conditions set out in the agreement; (programme compte de stabilisation du revenu net ou programme)

prescribed

prescribed means prescribed by regulation made by the Governor in Council; (Version anglaise seulement)

revenue insurance program

revenue insurance program means a program that is designed to insure a portion of the value of an eligible agricultural product produced or marketed by a producer participating in the program; (assurance-revenu)

reinsurance agreement

reinsurance agreement means that part of an agreement respecting the reinsurance of a portion of a liability for the payment of indemnities under a crop insurance program or a gross revenue insurance program. (accord de réassurance)

Her Majesty

Marginal note:Binding on Her Majesty

3 This Act is binding on Her Majesty in right of Canada or a province.

Protection of Producers’ Income

Agreements

Marginal note:Governor in Council authorization

• 4 (1) The Governor in Council may, by order, authorize the Minister to enter into an agreement with one or more provinces to provide for the establishment of any of the following programs:

  • (a) a net income stabilization account program;

  • (b) a gross revenue insurance program;

  • (c) a revenue insurance program; and

  • (d) a crop insurance program.

• Marginal note:Statement of principles

  (2) In negotiating an agreement authorized under subsection (1), the Minister shall take into consideration the following principles in respect of any program to be established under the agreement:

  • (a) the program should not unduly influence the decisions of producers of agricultural products with respect to production or marketing, and should encourage adjustments with respect to production or marketing so as to improve the effectiveness of the responses of producers to market opportunities;

  • (b) the level of protection to be provided by, and the relative share of governmental contributions to be provided to, the program in relation to particular agricultural products or classes of agricultural products should be equitable and reasonably consistent with all other agreements, taking into account regional diversity;

  • (c) the program should encourage the long-term social and economic sustainability of farm families and communities;

  • (d) the program should be compatible with Canada’s international obligations; and

  • (e) the program should encourage long-term environmental and economic sustainability.

Marginal note:Elements to be contained in all agreements

• 5 (1) An agreement shall provide for the required elements of each program to be established under the agreement, including, without limiting the generality of the foregoing, any elements that may be prescribed and the following required elements:

  • (a) the criteria for determining the eligibility of producers for participation in the program;

  • (b) the agricultural products or the grade, quality, variety, class, type or form of agricultural products or any special method of production thereof to which the program applies and the criteria for determining their eligibility to be covered by the program, including any ceilings to be applied on or minimum levels to be assigned to the quantity or value thereof;

  • (c) the manner of determining the income of producers and the manner of determining the value of the eligible agricultural products produced by them;

  • (d) the conditions under which and the procedure by which producers may enrol in or opt out of the program;

  • (e) the circumstances in which and the conditions under which a payment will be made to a producer or group of producers, the method of determining the amount of a payment, and the manner in which the payment will be made;

  • (f) the categories of expenses incurred in the administration of the program that are to be shared, and the manner in which those expenses are to be shared and paid;

  • (g) the method of settling any account that remains outstanding under the agreement at the time of its termination or expiration;

  • (h) a covenant by the province that it will keep and maintain such classes of records, and will furnish the Minister with such classes of information, as are specified;

  • (i) the terms and conditions of financial audits and compliance audits in respect of the program; and

  • (j) the duration of, and the manner of amending, the agreement.

• Marginal note:Environmental requirements to be provided for in agreements

  (2) An agreement respecting any program shall, subject to any applicable laws of Canada or a province,

  • (a) provide for the circumstances and conditions under which insurance may be withheld, restricted or enhanced for the purpose of protecting the environment and of encouraging sound management practices to ensure environmental sustainability; and

  • (b) require an environmental assessment of the program to be conducted within two years after the coming into force of the agreement and every five years thereafter, and provide for the manner in which the assessment is to be conducted.

• Marginal note:Establishment of committees

  (3) An agreement that provides for the establishment of a gross revenue insurance program, a revenue insurance program or a net income stabilization account program shall provide for

  • (a) the establishment of one or more national committees representing the parties to the agreement and the producers, and such technical experts as may be considered appropriate;

  • (b) the powers and duties of the committees, including a continuing review of the operation of this Act and the agreements and report to the Minister periodically and at least once a year on its recommendations on the administration of the agreements, this Act and any amendments it considers advisable;

  • (c) the manner in which members of the committees are to be appointed; and

  • (d) the payment of the remuneration and expenses of members of the committees.

• Marginal note:All programs to be self-sustaining

  (4) An agreement respecting any program, other than a net income stabilization account program, shall

  • (a) provide for the method of determining and adjusting the level of premiums, the respective share of the premiums to be paid by Canada, the province and the producers and the times at which and the manner in which premiums are to be paid; and

  • (b) require that the premiums levied under the program be sufficient to allow the program to be self-sustaining.

Marginal note:Tabling of agreement

• 6 (1) With the concurrence of provinces party to the agreement, the Minister shall cause to be laid before Parliament every agreement made pursuant to section 4 within thirty days of it being made, or, if Parliament is not then sitting, not later than the thirtieth day thereafter that either House of Parliament is sitting.

• Marginal note:Reference to committee

  (2) An agreement laid before Parliament pursuant to subsection (1) shall be automatically referred to the Standing Committee of the House of Commons on Agriculture.

Marginal note:Additional provisions respecting insurance programs

• 7 (1) An agreement that provides for the establishment of a crop insurance program or gross revenue insurance program shall, in addition to the required elements referred to in subsection 5(1), provide for

  • (a) the nature of the losses that may be insured against, including losses arising when seeding or planting is prevented by an agricultural hazard, and the manner of determining those losses;

  • (b) the areas to which the insurance program extends in relation to an agricultural product;

  • (c) the manner of determining the probable yield and actual yield of an agricultural product in any risk area or in respect of any farm enterprise and the insured acreage thereof;

  • (d) the period during which the insurance in respect of an agricultural product is effective;

  • (e) particulars of insurance policies to be issued under the program;

  • (f) in the case of a crop insurance program, the manner of determining the percentage, not to exceed ninety per cent, of the probable yield of an agricultural product in any risk area or in respect of any farm enterprise that may be insured; and

  • (g) in the case of a reinsurance agreement, the portion of the premium receipts to be paid to the Crop Reinsurance Fund referred to in section 13.

• Marginal note:Offsets between two insurance programs

  (2) Where one or more agreements with the same province or group of provinces provide for the establishment of a separate crop insurance program and a separate revenue insurance program, the agreement or at least one of the agreements, as the case may be, shall provide for the manner in which offsets between the two programs will be implemented.

• Marginal note:Administration by province

  (3) An agreement that provides for the establishment of a gross revenue insurance program, a crop insurance program or a revenue insurance program shall

  • (a) where there is no reinsurance agreement, require that advances to the appropriate accounts be made when the balances in those accounts are not sufficient to make payments to producers in accordance with the terms and conditions of the program, and provide for the manner in which those advances are to be shared between Canada and the province and the manner in which they are to be reimbursed; and

  • (b) if any such program is to be administered by the province, contain a convenant by the province

    • (i) that it will establish an account for each such program for the payment of indemnities, and

    • (ii) that all premium receipts will be used only for

      • (A) the payment of indemnities under the program,

      • (B) the repayment to the province or Canada of any amounts paid or advanced by the province or Canada, out of funds not derived from the premium receipts, in payment of indemnities under insurance policies, and

      • (C) the reinsurance of the liabilities of the province pursuant to a reinsurance agreement, and the reinsurance by the province in any other manner of any portion of its liabilities under the insurance program that is not covered by a reinsurance agreement.