• 1. (1) The definitions “crop” and “crop unit” in subsection 2(1) of the Agricultural Marketing Programs Act are repealed.

• (2) The definition “crop year” in subsection 2(1) of the English version of the Act is repealed.

• Marginal note:2001, c. 27, s. 203

  (3) The definitions “administrator”, “advance” and “producer” in subsection 2(1) of the Act are replaced by the following:

  “administrator”

  « agent d’exécution »

  “administrator” means one of the following organizations, if it has the power to sue and be sued in its own name:

  • (a) an organization of producers that is involved in marketing an agricultural product to which Part I applies;

  • (b) an organization, including the Board but not including a lender, that the Minister, taking into account any criteria prescribed by regulation, determines to be an organization that represents producers who produce, in an area, a significant portion of an agricultural product for which advances will be made; or

  • (c) an organization, including a lender, that the Minister determines to be an organization that would be able to make advances more accessible to producers and that the Minister designates as an administrator.

  “advance”

  « avance »

  “advance” means an advance payment to an eligible producer for an agricultural product.

  “producer”

  « producteur »

  “producer” means a producer of an agricultural product who is

  • (a) a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;

  • (b) a corporation a majority of whose voting shares are held by Canadian citizens or permanent residents;

  • (c) a cooperative a majority of whose members are Canadian citizens or permanent residents; or

  • (d) a partnership or other association of persons where partners or members who are Canadian citizens or permanent residents are entitled to at least 50% of the profits of the partnership or association.

  For the purposes of Parts I and IV, “producer” includes a person or entity mentioned in any of paragraphs (a) to (d) that is entitled to an agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor on a date specified for the purposes of this definition in an advance guarantee agreement.

• (4) The definition “agricultural product” in subsection 2(1) of the English version of the Act is replaced by the following:

  “agricultural product”

  « produit agricole »

  “agricultural product” means an animal or a plant or a product, including any food or drink, that is wholly or partly derived from an animal or a plant.

• (5) The definition campagne agricole in subsection 2(1) of the French version of the Act is replaced by the following:

  « campagne agricole »

  “production period”

  campagne agricole En ce qui concerne tel produit agricole, toute période d’au plus dix-huit mois — ou le nombre de mois supérieur fixé par le ministre — prévue par l’accord de garantie d’avance relativement à ce produit.

• (6) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  “production unit”

  « unité de production »

  “production unit”, in respect of an agricultural product, means the production unit specified in the advance guarantee agreement relating to the agricultural product.

• (7) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order:

  “production period”

  « campagne agricole »

  “production period”, in respect of an agricultural product, means the period of up to 18 months — or any longer period that is fixed by the Minister — specified in the advance guarantee agreement relating to the agricultural product.

• (8) Subsection 2(2) of the Act is repealed.

2. Section 4 of the Act is replaced by the following:

Marginal note:1999, c. 26, s. 42

• 3. (1) Subsections 5(1.1) to (2) of the Act are replaced by the following:

  • Marginal note:Restriction

    (1.1) An advance guarantee agreement may be made with an administrator and a lender, or with an administrator that is a lender, only if the Minister is satisfied that doing so will reduce the interest payable to the lender and the agreement is made subject to terms and conditions approved by the Minister of Finance.

  • Marginal note:Conditions concerning the guarantee

    (1.2) If a guarantee under the advance guarantee agreement is made to a lender, or to an administrator that is a lender, the agreement must provide, in addition to any other terms and conditions, that the interest rate on the money provided by the lender, or by the administrator, as the case may be, will not exceed the rate specified in the agreement.

  • Marginal note:Administrator to demonstrate ability

    (2) An administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement.

• (2) The portion of subsection 5(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Terms and conditions

    (3) In addition to identifying the agricultural products and specifying the terms and conditions governing advances and their repayment, an advance guarantee agreement must provide that the administrator agrees

• (3) Paragraph 5(3)(e) of the Act is replaced by the following:

  • (e) to take steps, in accordance with the terms and conditions of the advance guarantee agreement, to ensure that, before an advance is made,

    • (i) in the case of an agricultural product that is storable, it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, and

    • (ii) in the case of an agricultural product that is not storable, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable;

• (4) Section 5 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Exception

    (3.1) The terms described in paragraphs (3)(c) and (f) and subparagraph (3)(g)(i) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) and subparagraph (3)(g)(i) — are not required if the Minister and an administrator are the only parties to the agreement.

  • Marginal note:Schedule

    (3.2) The Governor in Council may, by regulation, on the recommendation of the Minister, amend the schedule by adding to it, or deleting from it, the name of a program.

  • Marginal note:Restriction

    (3.3) An amendment to an advance guarantee agreement may not be made during the period specified in it that constitutes the production period if doing so would extend that period beyond 18 months, or the longer period fixed by the Minister, if one was so fixed before the advance guarantee agreement was entered into.

• (5) Subsection 5(5) of the Act is replaced by the following:

  • Marginal note:Maximum contingent liability

    (5) The aggregate contingent liability of Her Majesty in relation to the principal outstanding under guarantees made under advance guarantee agreements must not at any time exceed $5 billion or the amount fixed by regulation.

  • Marginal note:Administrator’s percentage

    (6) The administrator’s percentage mentioned in paragraph (3)(g), as determined under the regulations, must be at least 1% and not more than 15%. If the regulations establish a method of calculating that percentage, the percentage is deemed to be 1% if the calculation results in a lower percentage, and 15% if the calculation results in a higher percentage.

Marginal note:1999, c. 26, s. 43

4. Sections 6 and 7 of the Act are replaced by the following:

5. Subsection 9(1) of the Act is replaced by the following:

• 6. (1) Subsection 10(1) of the Act is replaced by the following:

  Marginal note:Eligibility requirements for producers

  • 10. (1) For a producer to be eligible for a guaranteed advance during a production period,

    • (a) the producer must own the agricultural product continuously and be responsible for marketing it, as determined by the Minister, taking into account any criteria prescribed by regulation;

    • (b) if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on and must be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor;

    • (c) if the producer is a corporation with only one shareholder, the shareholder must

      • (i) have attained the age of majority in the province where the producer’s farming operation is carried on,

      • (ii) be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor, and

      • (iii) agree in writing to be personally liable to the administrator for any liability of the producer under section 22 and to provide any security for the repayment of the advance that the administrator may require;

    • (d) if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,

      • (i) at least one of the shareholders, partners or members, as the case may be, must have attained the age of majority in the province where the producer’s farming operation is carried on and must be principally occupied in that operation or be entitled to the agricultural product or a share in it as lessor, vendor, mortgagee or hypothecary creditor, and

      • (ii) each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable to the administrator for any liability of the producer under section 22 and must provide any security for the repayment of the advance that the administrator may require;

    • (e) the producer and, to the extent provided in the advance guarantee agreement, any related producers must not be in default under a repayment agreement;

    • (f) the producer must not be ineligible under subsection 21(4);

    • (g) the producer must not have given the agricultural product, or any amount to be received under a program listed in the schedule, as security ranking in priority to the security created by section 12; and

    • (h) the producer must demonstrate that

      • (i) in the case of an agricultural product that is storable, it is of marketable quality and stored so as to remain of marketable quality until disposed of or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, and

      • (ii) in the case of an agricultural product that is not storable, it is of marketable quality and maintained so as to remain of marketable quality until disposed of, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable.

• Marginal note:1999, c. 26, s. 45

  (2) Subsection 10(1.1) of the English version of the Act is replaced by the following:

  • Marginal note:Sharing security

    (1.1) For the purpose of paragraph (1)(h), the producer’s eligibility is not affected by the administrator sharing its security with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.

• (3) Subsection 10(2) of the Act is replaced by the following:

  • Marginal note:Eligible producers must make repayment agreements

    (2) An eligible producer must make a repayment agreement with the administrator under which the producer agrees

    • (a) to repay the advance

      • (i) by selling the agricultural product for which the advance is to be made to a buyer or buyers named by the administrator, and authorizing in writing each buyer to withhold from any amount they pay to the producer for each production unit an amount determined in accordance with the repayment schedule specified in the agreement,

      • (ii) by selling, in accordance with the terms and conditions specified in the agreement, the agricultural product for which the advance is to be made and paying directly to the administrator, for each production unit, an amount determined in accordance with the repayment schedule specified in the agreement,

      • (iii) by paying directly to the administrator any amount received under a program listed in the schedule,

      • (iv) by assigning to the administrator amounts payable to the producer under a program listed in the schedule,

      • (v) without proof that the agricultural product has been sold, by paying the administrator an amount up to an amount prescribed by the regulations, or

      • (vi) by paying the administrator by a combination of the methods described in subparagraphs (i) to (v);

    • (b) to ensure that

      • (i) in the case of an agricultural product that is storable, it will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable, and

      • (ii) in the case of an agricultural product that is not storable, it will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable or, if that agricultural product is in the course of being produced, or is not yet produced, the amount of the advance is covered by a program listed in the schedule and amounts that may be received under that program are assignable;

    • (c) to repay the amount of the overpayment, if any, of the advance within the period that begins on the earlier of the day on which the producer becomes aware of the overpayment and the day on which the administrator mails or delivers a notice to the producer stating that there has been an overpayment of the advance and ends on the expiry of the number of days set out in the agreement; and

    • (d) to comply with any other terms and conditions set out in the agreement, including terms and conditions governing the delivery of the agricultural product and the payment of interest, both before and after any default.