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

Marginal note:Disclosure of information

11 Information submitted for the purposes of administering a program established under an agreement may be communicated, disclosed or made available to an official of the Canada Revenue Agency solely for the purposes of administering or enforcing the Income Tax Act.

Special Measures

Marginal note:Special Measures Committee

• 12 (1) Where the Minister is of the opinion that exceptional circumstances exist that require that action be taken outside the scope of a program established under an agreement, the Minister may implement such procedures or other special measures as the Minister considers necessary to determine the appropriate action to be taken to remedy those circumstances, including the appointment of a committee, to be known as a Special Measures Committee, which shall consist of members representing Canada, the provinces concerned, producers and any other group of persons that the Minister considers appropriate.

• Marginal note:Terms of appointment

  (2) The members of a Special Measures Committee may be appointed for such terms and may be paid such remuneration and expenses as are fixed by the Minister.

• Marginal note:Reference by Minister

  (3) The Minister may make a reference to a Special Measures Committee where the Minister considers that special circumstances exist that require the examination or analysis of a situation affecting producers of an agricultural product in any region of Canada.

• Marginal note:Mandate

  (4) A Special Measures Committee

  • (a) shall, on a reference made pursuant to subsection (3), examine or analyse the situation and shall submit a report, at the time, in the manner and to the persons specified by the Minister in the terms of reference of the examination or analysis, containing any recommendation with respect to any program established under an agreement or any other recommendation, including farm adjustment measures or measures to encourage improved farm management, that the Committee considers appropriate in the circumstances; and

  • (b) may exercise such powers and shall perform such other duties and functions as are specified by the Minister.

• Marginal note:Order in Council

  (5) The Governor in Council may, by order, authorize the Minister to enter into an agreement with one or more provinces, or to take any other appropriate action, that the Governor in Council deems to be necessary for the purpose of assisting producers of agricultural products following the implementation of any procedures or other special measures pursuant to subsection (1).

• Marginal note:Preference to existing programs

  (6) In acting pursuant to an authorization referred to in subsection (5), the Minister shall, whenever possible, take action within the scope of a program established under an agreement.

• Marginal note:Tabling of order

  (7) The Minister shall, as soon as possible after an order is made pursuant to subsection (5), cause a copy of the order to be laid before each House of Parliament.

Accounts

Crop Reinsurance Fund

Marginal note:Crop Reinsurance Fund

• 13 (1) There is hereby continued in the accounts of Canada the special account known as the Crop Reinsurance Fund,

  • (a) to which shall be credited the moneys paid by a province for the purpose of reinsurance under a reinsurance agreement; and

  • (b) to which shall be charged all amounts required for the purpose of making payments to a province under the terms of a reinsurance agreement.

• Marginal note:Payments charged to Fund

  (2) The Minister of Finance may, subject to this Act, on the request of the Minister, authorize payment out of the Crop Reinsurance Fund of any amount required to be paid to any province under the terms of a reinsurance agreement.

• Marginal note:Advances to Fund out of Consolidated Revenue Fund

  (3) Where the amount standing to the credit of the Crop Reinsurance Fund is insufficient for the payment of amounts required under the terms of a reinsurance agreement, the Minister of Finance may authorize an advance to the Crop Reinsurance Fund from the Consolidated Revenue Fund of an amount sufficient to meet the deficit.

• Marginal note:Advances repayable

  (4) An advance made under subsection (3) shall be credited to the Crop Reinsurance Fund and repaid in such manner and on such terms and conditions, including the payment of interest, as the Minister of Finance may fix, after considering any advice furnished by the Minister.

• Marginal note:Advance included in deficit

  (5) An amount advanced to the Crop Reinsurance Fund under subsection (3) and any interest thereon shall be included in any estimated deficit of that Fund.

• Marginal note:Repayment

  (6) The repayment of an amount advanced under subsection (3) shall be charged to the Crop Reinsurance Fund.

Marginal note:Limitation of payments out of Crop Reinsurance Fund to province

• 14 (1) Subject to subsection (2), the total amount that may be paid under section 13 to a province in any year pursuant to the terms of a reinsurance agreement shall not exceed seventy-five per cent of the amount by which the indemnities required to be paid by the province in the year under policies of insurance in force in that year exceed the aggregate of

  • (a) the premium receipts for the year minus any moneys paid by the province for the purpose of reinsurance for that year,

  • (b) the reserve for the payment of indemnities, and

  • (c) a portion of any sums paid by the province in respect of the indemnities required to be paid by the province in the year under the policies of insurance in force in that year, equal to two and one-half per cent of the total liability of the province under those policies.

• Marginal note:Modified limitation of reinsurance payments in certain circumstances

  (2) Where a province has paid any sums described in paragraph (1)(c) and in any year the total of those sums not repaid to the province exceeds sixteen and two-thirds per cent of the total liability of the province under the policies of insurance in force in that year, that paragraph shall not be taken into account in the calculation pursuant to subsection (1) of the total amount that may be paid under section 13 to the province in that year.

Net Income Stabilization Account in the Accounts of Canada

Marginal note:Establishment

• 15 (1) If an agreement that provides for the establishment and administration by the Government of Canada of a net income stabilization account program in respect of an agricultural product or class of agricultural products indicates that the accounts of producers participating in the program are to be in the accounts of Canada, there shall be established in the accounts of Canada a Net Income Stabilization Account.

• Marginal note:Credits to Net Income Stabilization Account

  (2) There shall be paid into the Consolidated Revenue Fund and credited to a Net Income Stabilization Account separately in respect of each producer participating in a net income stabilization account program established under an agreement

  • (a) all amounts received by Her Majesty in right of Canada under the agreement in respect of that producer as or on account of payments of contributions, interest and bonuses; and

  • (b) all amounts returned or recovered pursuant to that agreement or section 155 of the Financial Administration Act as or on account of repayments of stabilization payments made pursuant to that agreement.

• Marginal note:Amounts in Consolidated Revenue Fund to be credited to Net Income Stabilization Account

  (3) There shall be credited to a Net Income Stabilization Account and charged to the Consolidated Revenue Fund, at the times required by the agreement, an amount equal to Canada’s share of the contributions, interest and bonuses under the agreement to which that Account relates.

• Marginal note:Annual adjustment

  (4) The Minister of Finance shall, as of the end of each fiscal year, credit or charge to a Net Income Stabilization Account such amount as will adjust the aggregate amount that has been credited to the Account for that fiscal year pursuant to subsection (3) to the aggregate amount that should have been credited to the Account for that fiscal year pursuant to that subsection.

• Marginal note:Postponement of transfer of amounts

  (5) Notwithstanding subsections (3) and (4), the Minister of Finance may credit and charge the amounts to be credited and charged pursuant to those subsections, together with interest authorized under subsection (6) as if the amounts were credited and charged at the times referred to in those subsections, at such later time as the Minister of Finance may fix.

• Marginal note:Interest

  (6) The Minister of Finance may authorize, in accordance with such terms and conditions and at such rates as the Minister of Finance may fix, after considering any advice furnished by the Minister, the payment of interest on the amount standing to the credit of a Net Income Stabilization Account, and that interest shall be credited to the Net Income Stabilization Account and charged to the Consolidated Revenue Fund.

• Marginal note:Charges to Net Income Stabilization Accounts

  (7) Subject to paragraph 8(1)(b), there shall be paid out of the Consolidated Revenue Fund and charged to a Net Income Stabilization Account, separately in respect of each producer participating in the net income stabilization account program, all amounts paid under the agreement providing for that program in respect of that producer.

Net Income Stabilization Accounts in Financial Institutions

Marginal note:Agreement with financial institutions

• 15.1 (1) If an agreement that provides for the establishment of a net income stabilization account program in respect of an agricultural product or class of agricultural products indicates that the accounts of producers participating in the program are to be in financial institutions, the Minister may enter into an agreement with one or more financial institutions to provide for their holding of Net Income Stabilization Accounts of producers participating in the program.

• Marginal note:Contents — terms and conditions

  (2) An agreement with a financial institution must set the terms and conditions required for the holding of Net Income Stabilization Accounts including, but not limited to, the prescribed terms and conditions and the following terms and conditions:

  • (a) the financial institution may hold only one Net Income Stabilization Account in respect of any particular producer; and

  • (b) the financial institution may permit withdrawals to be made from a Net Income Stabilization Account only as provided for in the agreement.

• Marginal note:Contents — additional provisions

  (3) In addition to the terms and conditions required by subsection (2), an agreement with a financial institution must provide for

  • (a) the nature of the investments that may be held in a Net Income Stabilization Account;

  • (b) the account transactions that the financial institution must perform in accordance with the agreement;

  • (c) the information that must be submitted to the Minister by the financial institution in the periods specified in the agreement;

  • (d) the Minister’s right of access to and right to audit any records held by the financial institution that contain information relating to the Net Income Stabilization Accounts held by it and the manner in which those rights are to be exercised;

  • (e) the penalties that may be imposed if the financial institution does not comply with the agreement;

  • (f) the terms and conditions respecting the amendment, termination or expiry of the agreement; and

  • (g) the manner of transferring Net Income Stabilization Accounts held by the financial institution on the termination or expiry of the agreement.

• Marginal note:Limit of one Account

  (4) A particular producer may hold only one Net Income Stabilization Account at financial institutions at any time in respect of the program to which the Account relates.

• Marginal note:Payments to Her Majesty

  (5) A financial institution that holds a Net Income Stabilization Account of a particular producer shall, on the direction of the Minister, pay from the Account to Her Majesty in right of Canada or in right of a province

  • (a) any amount that is owing by the producer in respect of amounts paid into the Account in excess of the producer’s entitlement under the program to which the Account relates or any other program established under this Act;

  • (b) any administrative fees or penalties under the program to which the Account relates or any other program in respect of which amounts were paid into the Account; or

  • (c) all or part of any other amount that is owing by the producer to Her Majesty.

• Marginal note:No assignments, etc.

  (6) Except for the purposes of the Agricultural Marketing Programs Act, an amount in a Net Income Stabilization Account of a producer may not be assigned or given as security, and any transaction that purports to do so is void to that extent.

• Marginal note:Exemption from attachment, etc.

  (7) An amount in a Net Income Stabilization Account of a producer is exempt from attachment, seizure and execution, except in the case of a producer who has the status of a bankrupt, or if the attachment, seizure or execution is for the purpose of satisfying the provisions of an agreement or court order relating to separation or divorce that provides for the division of the Account into separate Net Income Stabilization Accounts.

Revenue Insurance Fund

Marginal note:Revenue Insurance Fund

• 16 (1) Where an agreement provides for the establishment and administration by Canada of a revenue insurance program in respect of an agricultural product or class of agricultural products, there shall be established in the accounts of Canada an account, to be known as the Revenue Insurance Fund, in respect of that agricultural product or class.

• Marginal note:Balance of Stabilization Accounts credited

  (2) The Stabilization Account for a particular agricultural commodity established in the accounts of Canada by section 13.1 of the Agricultural Stabilization Act, as that section read immediately before the coming into force of this Act, is hereby continued, and any balance standing to the credit of the Stabilization Account for that commodity shall be transferred to the Revenue Insurance Fund for the equivalent agricultural product or class of agricultural products.

• Marginal note:Credits to Revenue Insurance Fund

  (3) There shall be paid into the Consolidated Revenue Fund and credited to the Revenue Insurance Fund established in respect of a particular revenue insurance program

  • (a) all amounts received by Her Majesty in right of Canada under an agreement in respect of the revenue insurance program as or on account of payments of premiums and interest; and

  • (b) all amounts returned or recovered pursuant to that agreement or section 155 of the Financial Administration Act as or on account of repayments of payments made pursuant to that agreement.

• Marginal note:Amounts in Consolidated Revenue Fund to be credited to Revenue Insurance Fund

  (4) There shall be credited to a Revenue Insurance Fund and charged to the Consolidated Revenue Fund, at the times required by the agreement, an amount equal to Canada’s share of the premiums under the agreement to which that Revenue Insurance Fund relates, reduced in proportion to any unpaid portion of the share of the premiums payable by the provinces or by producers.

• Marginal note:Annual adjustment

  (5) The Minister of Finance shall, as of the end of each fiscal year, credit or charge to a Revenue Insurance Fund such amount as will adjust the aggregate amount that has been credited to the Fund for that fiscal year pursuant to subsection (4) to the aggregate amount that should have been credited to the Fund for that fiscal year pursuant to that subsection.

• Marginal note:Postponement of transfer of amounts

  (6) Notwithstanding subsections (4) and (5), the Minister of Finance may credit and charge the amounts to be credited and charged pursuant to those subsections, together with interest authorized under subsection (7) as if the amounts were credited and charged at the times referred to in those subsections, at such later time as the Minister of Finance may fix.

• Marginal note:Interest

  (7) The Minister of Finance may authorize, in accordance with such terms and conditions and at such rates as the Minister of Finance may fix, after considering any advice furnished by the Minister, the payment of interest on the amount standing to the credit of a Revenue Insurance Fund, and that interest shall be credited to the Revenue Insurance Fund and charged to the Consolidated Revenue Fund.

• Marginal note:Charges to Revenue Insurance Fund

  (8) There shall be paid out of the Consolidated Revenue Fund and charged to a Revenue Insurance Fund established in respect of a revenue insurance program all amounts paid under the agreement providing for that program.