An Act to amend the Agricultural Marketing Programs Act (S.C. 2006, c. 3)
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Assented to 2006-06-22
7. Sections 11 and 12 of the Act are replaced by the following:
Marginal note:Unmarketable agricultural product
11. If an agricultural product for which a guaranteed advance is made ceases to be in marketable condition, in whole or in part, through no fault of the producer, the producer becomes liable to repay immediately, to the administrator that made the advance, the portion of the guaranteed advance that is attributable to the unmarketable portion of the agricultural product, together with the interest on that portion from the date of the advance.
Marginal note:Security
12. An administrator that makes a guaranteed advance to a producer in a production period in respect of an agricultural product shall take the security required by the regulations, for the amount of the producer’s liability under sections 22 and 23, in the agricultural product for which the advance was made, in any agricultural product produced in a subsequent production period by the producer and, subject to the repayment agreement, in any amount that may be received by the producer under a program listed in the schedule.
8. (1) Subsection 13(1) of the English version of the Act is replaced by the following:
Marginal note:Powers to make arrangements and agreements
13. (1) For the purpose of making guaranteed advances under this Act, the Board may make any arrangements, contracts or agreements that it considers necessary or advisable for the administration of this Part and it may borrow or raise money by any means, including by issuing, reissuing, selling and pledging bonds, debentures, notes and other evidences of indebtedness of the Board.
(2) Subsection 13(2) of the Act is replaced by the following:
Marginal note:Minister of Finance to guarantee repayment
(2) The Minister of Finance may, subject to any terms and conditions approved by the Governor in Council, guarantee the repayment of money borrowed under subsection (1) together with the interest on it if the money is borrowed or raised in order to make an advance under a guaranteed advance agreement to which the only parties are the Minister and the Board.
9. Section 14 of the English version of the Act is replaced by the following:
Marginal note:Cash purchase tickets
14. Despite the Canada Grain Act, every person, including the manager or operator of an elevator, authorized by the Board to make guaranteed advances on its behalf may make advances by means of cash purchase tickets.
10. Sections 15 to 19 of the Act are replaced by the following:
Marginal note:Delivery of documents
16. (1) At any time after a producer applies to the Board for an advance, the Board may require the producer to deliver to it any document, including a permit book, that the Board issued to the producer or to a related producer.
Marginal note:Endorsement
(2) The Board may require an endorsement to be made in any of those documents, in a form specified by the Board, indicating that amounts must be deducted in accordance with the repayment agreement with the producer and paid to the Board in priority to all other persons.
Marginal note:Deductions
17. (1) If an agricultural product for which the Board has required the delivery of a document bearing an endorsement required under subsection 16(2) is sold, the producer of the agricultural product or, if the person purchasing it has been authorized by the Board to make remittances to the Board in respect of amounts paid for agricultural products, the person purchasing the agricultural product, shall
(a) deduct and pay to the Board, in priority to all other persons, the portion of the payment for the agricultural product that the repayment agreement with the producer authorizes to be deducted from each payment until the advance has been repaid; and
(b) make an appropriate entry of the deduction in the document and in any other document that has the same endorsement and that is presented to the person purchasing the agricultural product.
Marginal note:Cancellation of endorsement
(2) When the guaranteed advance has been repaid, the Board must cancel the endorsement.
Marginal note:Prohibition
18. A producer whose document has been endorsed under subsection 16(2) is not entitled to receive and shall not use any other document, including a document of a related producer, in substitution for the endorsed document for the same or any subsequent production period, unless the guaranteed advance is repaid or the endorsement is also made in the other document.
Amount of Advances
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 specified in the advance guarantee agreement 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.
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, the maximum amount of an advance eligible for a guarantee under this Part is the lesser of the amount calculated under subsection (1) and the percent-age, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program.
11. Subsection 20(1) of the Act is replaced by the following:
Marginal note:Annual maximum guarantee for each producer
20. (1) Subject to subsection (1.1), the maximum amount of advances in any production period that are eligible for a guarantee under this Act is
(a) for a particular agricultural product produced by a producer, the amount specified in the advance guarantee agreement for that agricultural product; and
(b) for all agricultural products produced by a producer or a related producer, to the extent that advances for the agricultural products are attributable to the producer under subsection (2), $400,000 or the amount fixed by regulation.
Marginal note:Overlapping production periods
(1.1) The maximum amount of all advances that are eligible for a guarantee under this Act in relation to a producer, or to a related producer to the extent that the advances are attributable to the producer under subsection (2), may not, at any one time, exceed $400,000, or the amount fixed by regulation.
12. (1) Paragraph 21(1)(b) of the English version of the Act is replaced by the following:
(b) has not met all of their obligations under the agreement at the end of the production period for which the advance was made;
(2) Paragraph 21(1)(d) of the Act is replaced by the following:
(d) at any time breaches an obligation under the agreement and, if the breach relates to the obligation to store the agricultural product or to maintain it so that it remains of marketable quality, section 11 does not apply; or
13. Subsection 24(1) of the Act is replaced by the following:
Marginal note:Board deductions
24. (1) If a producer is in default under a repayment agreement with the Board or any other administrator, the Board may, for the purpose of repaying the producer’s liability under sections 22 and 23, make deductions from any amounts owing under the Canadian Wheat Board Act to the producer or to another producer whose permit book the producer uses.
14. The Act is amended by adding the following after section 33:
Marginal note:Crown debts assignable
33.1 The following may be assigned in whole or in part:
(a) for the purposes of Part I, an amount payable under a program listed in the schedule that is a Crown debt within the meaning of section 66 of the Financial Administration Act; and
(b) for the purposes of Part II, an amount payable by the Minister under a price guarantee agreement.
15. Subsection 34(4) of the Act is replaced by the following:
Marginal note:Use of document
(4) A person who uses a document in contravention of section 18 commits an offence.
16. (1) The portion of subsection 40(1) of the Act before paragraph (g) is replaced by the following:
Marginal note:Governor in Council regulations
40. (1) The Governor in Council may make regulations
(a) for the purposes of the definition “administrator” in subsection 2(1), prescribing criteria for determining
(i) whether organizations represent producers in an area, or
(ii) what constitutes a significant portion of an agricultural product, either generally or with respect to any specified area;
(b) for the purpose of subsection 4.1(1), prescribing criteria for
(i) establishing an average price for an agricultural product, or
(ii) determining whether an agricultural product is not processed or not processed beyond what is necessary to store it and prevent spoilage;
(c) determining the administrator’s percentage mentioned in paragraph 5(3)(g), or establishing a method of calculating it, which percentage may differ among administrators depending on their experience and past performance;
(d) determining a method of calculating the Minister’s percentage mentioned in paragraph 5(3)(i) and subsection 23(1);
(d.1) fixing an amount for the purposes of each of subsections 5(5), 7(2) and 9(1), paragraph 20(1)(b) and subsection 20(1.1), which amount may, for the purposes of subsection 9(1), paragraph 20(1)(b) or subsection 20(1.1), differ with regard to classes of producers;
(e) fixing a percentage for the purposes of each of subsection 7(2), paragraph 9(2)(c), subsection 19(2) and paragraph 20(2)(c);
(e.1) prescribing criteria for determining, for the purpose of paragraph 10(1)(a), when a producer ceases to own an agricultural product or ceases to be responsible for its marketing;
(f) prescribing an amount for the purposes of subparagraph 10(2)(a)(v);
(f.1) for the purposes of paragraph 10(2)(c), defining “overpayment”;
(f.2) respecting the security that administrators are required to take for the purposes of section 12;
(2) Subsection 40(1) of the Act is amended by striking out the word “and” at the end of paragraph (h) and by adding the following after paragraph (h):
(h.1) respecting the assignment of the amounts referred to in paragraphs 33.1(a) and (b); and
(3) Subsection 40(2) of the Act is replaced by the following:
Marginal note:Recommendation
(2) Regulations made under paragraphs (1)(d.1), and regulations made under paragraph (1)(e) to the extent that they fix a percentage for the purposes of subsection 7(2) or 19(2), may only be made on the recommendation of the Minister with the concurrence of the Minister of Finance.
Marginal note:Different requirements for security
(3) Regulations made under paragraph (1)(f.2) may require different security to be taken with respect to different classes of agricultural products, different amounts of producer liability and different risks associated with that liability.
17. Subsection 42(1) of the Act is replaced by the following:
Marginal note:Five-year review
42. (1) Every five years after the coming into force of this subsection, the Minister must review the provisions and operation of this Act in consultation with the Minister of Finance.
18. Section 51.1 of the Act is replaced by the following:
Marginal note:Defaults
51.1 For the purpose of applying paragraph 10(1)(e), a default under a repayment agreement includes a default in repaying an advance made under the Advance Payments for Crops Act on or before March 31, 1997.
19. Section 52.1 of the Act is replaced by the following:
Marginal note:Defaults
52.1 For the purpose of applying paragraph 10(1)(e), a default under a repayment agreement includes a default in repaying an advance payment made under the Prairie Grain Advance Payments Act on or before May 31, 1997.
20. The Act is amended by adding, at the end of the Act, the schedule set out in the schedule to this Act.
Marginal note:Transitional
21. (1) The following definitions apply in this section.
“new Act”
« nouvelle loi »
“new Act” means the Agricultural Marketing Programs Act as it reads on the day on which this Act comes into force.
“old Act”
« ancienne loi »
“old Act” means the Agricultural Marketing Programs Act as it read immediately before the day on which this Act comes into force.
Marginal note:Old Act continues to apply
(2) The old Act continues to apply after the day this Act comes into force with respect to advance guarantee agreements and repayment agreements entered into under the old Act that are still in existence on the day on which this Act comes into force.
Marginal note:Unpaid amounts — old Act
(3) Amounts remaining unpaid in respect of advances made under advance guarantee agreements entered into under the old Act that are still in existence on the day on which this Act comes into force are to be taken into account for the purposes of applying the new Act.
Marginal note:Unpaid amounts — spring credit advances
(4) Amounts remaining unpaid in respect of advances made under agreements entered into under the Spring Credit Advance Program or the Enhanced Spring Credit Advance Program that are still in existence on the day on which this Act comes into force are to be taken into account for the purposes of applying the new Act.
Marginal note:Default — spring credit advances
(5) A default under a repayment agreement entered into under the Spring Credit Advance Program or the Enhanced Spring Credit Advance Program is deemed to be a default under a repayment agreement entered into under the new Act.
Marginal note:Retroactive effect of regulations
(6) For the purpose of implementing the amendments to the Agricultural Marketing Programs Act enacted by this Act, a regulation made under the new Act, shall, if the regulation so provides, be retroactive and be deemed to have come into force on a day earlier than the day on which the regulation was made, which earlier day may not be before the day on which this Act comes into force.
Marginal note:Coming into force
22. This Act comes into force on a day to be fixed by order of the Governor in Council.
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