Agricultural Marketing Programs Act

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: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.

• 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.

• Marginal note:Terms and conditions governing emergency advances

  (3) Terms and conditions in the advance guarantee agreement relating to emergency advances must also be included in the repayment agreements of producers who receive those advances.

• Marginal note:Required information

  (4) The producer must provide to the administrator any information that it requests for the purpose of applying this Act.