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Agricultural Marketing Programs Regulations
SOR/99-295
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? of the Agricultural Marketing Programs Acta, hereby makes the annexed Agricultural Marketing Programs Regulations.
aS.C. 1997, c. 20
INTERPRETATION
1. The definitions in this section apply in these Regulations.
Act means the Agricultural Marketing Programs Act. （Loi（/p>
settlement agreement means an agreement between a producer and an administrator that sets out the terms for the repayment of amounts owing under a repayment agreement by the producer who is in default. （accord de rglement（/p>
PRESCRIBED CRITERIA
1.1 The following are prescribed criteria for the purposes of paragraph 4.1?）（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
（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.
1.2 For the purposes of paragraph 4.1?）（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?）（a）（i of the Act, it is alive;
（b in the case of a plant referred to in subparagraph 4.1?）（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 C with or without the addition of a preserving agent C 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?）（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 C with or without the addition of a preserving agent C in a controlled atmosphere or by refrigeration or freezing.
SOR/2006-293, s. 1.
OWNERSHIP AND RESPONSIBILITY FOR MARKETING
2. For the purposes of paragraph 10?）（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 C other than a horticultural crop, maple syrup or honey C has been placed in a pool.
SOR/2006-293, s. 2.
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ADMINISTRATORS PERCENTAGE OF LIABILITY
3. ? The following definitions apply in this section.
calculation date means the date as of which the historical liability data for an administrator under an advance guarantee agreement are calculated, which date is
（a the date specified in the agreement, or
（b if the last day of the ninth month following the final day of the calculation period specified in the agreement is earlier than the date referred to in paragraph （a）， or if there is no date specified in the agreement, the date that is the last day of the ninth month following the final day of the calculation period specified in the agreement. （date de calcul（/p>
calculation period means any of the following:
（a a period that is specified in an advance guarantee agreement, that is of a duration of 12 months or less and that ends before November 27, 2006;
（b a transitional crop year; and
（c a post-2006 production period. （priode de base（/p>
experienced administrator means an administrator under an advance guarantee agreement for a post-2006 production period, for which, at the time when the agreement is entered into, historical liability data are available for two or more calculation periods that began and were completed within the period of three years prior to the day on which the agreement is entered into. （agent dexcution chevronn（/p>
historical liability data in respect of an administrator, means all of the following data:
（a the total of all repayments C in full or in part C of the principal amounts under settlement agreements to that administrator by producers;
（b the total of all the principal amounts of settlement agreements that are owed to that administrator by producers not in default under those agreements; and
（c the total of all the original principal amounts of settlement agreements with that administrator that are in effect. （donnes historiques de responsabilit（/p>
intermediate administrator means an administrator under an advance guarantee agreement for a post-2006 production period, for which, at the time when the agreement is entered into, historical liability data are available for only one calculation period that began and was completed within the period of three years prior to the day on which the agreement is entered into. （agent dexcution intermdiaire（/p>
new administrator means an administrator under an advance guarantee agreement for a post-2006 production period, for which, at the time when the agreement is entered into, no historical liability data are available for any calculation period that began and was completed within the period of three years prior to the day on which the agreement is entered into. （nouvel agent dexcution（/p>
post-2006 production period means a production period that begins on or after November 27, 2006. （campagne agricole postrieure 2006（/p>
transitional crop year means a period that is specified in an advance guarantee agreement, that is of a duration of 12 months or less and that begins before November 27, 2006 and ends on or after that date. （campagne agricole transitoire（/p>
? The administrators percentage mentioned in paragraph 5?）（g of the Act for a new administrator is 1%.
? The administrators percentage mentioned in paragraph 5?）（g of the Act for an intermediate administrator or an experienced administrator shall be calculated in accordance with the formula
（（A-B x 100 C
where
A is
（a in the case of an intermediate administrator, the total of the outstanding principal amounts of advances owed to that administrator by producers who are in default, as at the calculation date, under repayment agreements with that administrator in respect of the one previous calculation period applicable to that administrator that began and was completed within the period of three years prior to the day on which the advance guarantee agreement is entered into, and
（b in the case of an experienced administrator, the total of the outstanding principal amounts of advances owed to that administrator by producers who are in default, as at the calculation date, under repayment agreements with that administrator in respect of the two previous calculation periods applicable to that administrator that began and were completed within the period of three years prior to the day on which the advance guarantee agreement is entered into;
B is the amount calculated in accordance with subsection ?）； and
C is the total of the principal amounts of all advances made to producers,
（a in the case of an intermediate administrator, during the one previous calculation period applicable to that administrator that began and was completed within the period of three years prior to the day on which the advance guarantee agreement is entered into, and
（b in the case of an experienced administrator, during the two previous calculation periods applicable to that administrator that began and were completed within the period of three years prior to the day on which the advance guarantee agreement is entered into.
? The value of B in subsection ? is the amount calculated in accordance with the formula
（（D + E x E F
where
D is the total of all repayments C in full or in part C of the principal amounts, as at the calculation date, under settlement agreements by producers to the administrator, for
（a in the case of an intermediate administrator, the one previous calculation period applicable to that administrator that began and was completed within the period of three years prior to the day on which the advance guarantee agreement is entered into, and
（b in the case of an experienced administrator, the two previous calculation periods applicable to that administrator that began and were completed within the period of three years prior to the day on which the advance guarantee agreement is entered into;
E is the total of all the principal amounts of settlement agreements that are owed to the administrator as at the calculation date by producers that are not then in default under the settlement agreements, for
（a in the case of an intermediate administrator, the one previous calculation period applicable to that administrator that began and was completed within the period of three years prior to the day on which the advance guarantee agreement is entered into, and
（b in the case of an experienced administrator, the two previous calculation periods applicable to that administrator that began and were completed within the period of three years prior to the day on which the advance guarantee agreement is entered into; and
F is the total of all the original principal amounts of those settlement agreements that are in effect as at the calculation date between producers and the administrator, for
（a in the case of an intermediate administrator, the one previous calculation period applicable to that administrator that began and was completed within the period of three years prior to the day on which the advance guarantee agreement is entered into, and
（b in the case of an experienced administrator, the two previous calculation periods applicable to that administrator that began and were completed within the period of three years prior to the day on which the advance guarantee agreement is entered into.
SOR/2006-293, s. 3.
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MINISTERS PERCENTAGE OF LIABILITY
4. The Ministers percentage mentioned in paragraph 5?）（i and subsection 23? of the Act is 100% of the producers liability, minus the administrators percentage calculated under section 3.
ATTRIBUTABLE PERCENTAGES FOR COOPERATIVES
5. For the purposes of paragraphs 9?）（c and 20?）（c of the Act, the attributable percentage of an amount advanced to a cooperative is the percentage calculated by dividing 100 by the number of members of the cooperative.
LIMITATION FOR CASH REPAYMENTS WITHOUT PROOF OF SALE OF THE AGRICULTURAL PRODUCT
6. For the purposes of subparagraph 10?）（a）（v of the Act, the amount prescribed is the amount that is the greater of
（a 10% of the advance, and
（b $1,000.
SOR/2006-293, s. 4.
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DEFINITION OF OVERPAYMENT
6.1 ? For the purposes of paragraph 10?）（c of the Act, overpayment means
（a in the case where an advance is covered by a program listed in the schedule to the Act, where the coverage amount payable to the producer under the program is reduced through no fault of the producer and where section 11 of the Act does not apply, that part of the outstanding amount of the advance that exceeds the reduced coverage amount by more than the limit determined in accordance with subsection ?）； and
（b in the case where an advance is in respect of an agricultural product that, at the time of the advance, was in the course of being produced or was not yet produced, where the value of the produced agricultural product C and the value of the security on the produced agricultural product C is reduced through no fault of the producer and where section 11 of the Act does not apply, that part of the outstanding amount of the advance that exceeds the reduced value of the security by more than the limit determined in accordance with subsection ?）、/p>
? The limit is the amount that is the greater of
（a 10% of the advance, and
（b $6,000.
? In any case where both paragraphs ?）（a and （b apply to an advance, overpayment means the amount calculated in accordance with paragraph ?）（b）、/p>
SOR/2006-293, s. 4.
SECURITY
6.2 For the purposes of section 12 of the Act, the required security is one or a combination of the following:
（a security referred to in section 427 of the Bank Act;
（b security under applicable provincial law; and
（c a full or partial assignment.
SOR/2006-293, s. 4.
CONDITIONS FOR PAYMENT
7. ? No payment under subsection 23? of the Act may be made to a lender or administrator unless
（a the Minister receives a request in writing from the administrator for payment;
（b the administrator,
（i if the advance guarantee agreement sets out the procedures to be followed in the event of default on the repayment agreement or the death of the producer, or in the event that the administrator has reasonable grounds to believe that an offence under the Act has been committed by the producer, demonstrates that it followed those procedures,
（ii after receiving notice that the producer has made an assignment under the Bankruptcy and Insolvency Act or that the producer is subject to a receiving order, files with the appropriate authority a notice of their claim against the assets of the producer and provides a copy of that notice to the Minister,
（iii after being informed that the producer has died, files with the executor or administrator of the producers estate a notice of the debt and provides a copy of that notice to the Minister,
（iv if the administrator has reasonable grounds to believe that an offence under this Act has been committed, reports the particulars to the appropriate police authority and provides a copy of that report to the Minister, or
（v in any other case, provides
（A copies of three letters of demand for payment that have been sent to the producer,
（B proof that the administrator made or attempted to make a personal visit or telephone call to the producer, and
（C a detailed de
（c the administrator provides to the Minister an undertaking in writing to
（i take all reasonable measures in the future to recover from the producer any amounts still owed, and
（ii advise the Minister of all opportunities for collection as they arise.
（d [Repealed, SOR/2006-293, s. 5]
?.1 In the case where the administrator is the Board, before requesting payment from the Minister under subsection 23? of the Act, the Board shall undertake to the Minister in writing to continue to collect, during the period specified in the advance guarantee agreement, any amounts still owed by the producer by endorsing the documents referred to in section 16 of the Act or by offsetting payments to producers.
? Despite paragraph ?）（a）， payment under subsection 23? of the Act may be made to a lender if
（a the administrator has not made a request in writing to the Minister for payment within 10 months after the end of the production period specified in the advance guarantee agreement;
（b after the 10 month-period referred to in paragraph （a）， the lender has submitted a letter to the administrator asking that the administrator request in writing payment from the Minister as specified in the advance guarantee agreement;
（c the administrator has failed to comply with the request referred to in paragraph （b within 10 days after the date on which the letter was sent; and
（d the lender submits a request in writing to the Minister for payment
（i stating that the lender has written to the administrator asking that the administrator request in writing payment from the Minister and that the administrator has failed to comply within 10 days after the date on which the letter was sent,
（ii providing the Minister with a copy of the letter to the administrator, and
（iii specifying the name and address of the producer in default and the amount of the default.
SOR/2001-343, s. 1;SOR/2006-293, s. 5.
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COMING INTO FORCE
8. These Regulations come into force on the day which they are registered.
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