Ontario Edible Horticulture Support Program For Edible Horticulture Farmers - Guidelines
Effective for the 2018 and 2019 Program Years
Table of Contents
1.1 - Definitions
For the purposes of these Guidelines, the terms below will have the following meanings:
"Agricorp" means AgriCorp, a Crown Agency without share capital established under the AgriCorp Act, 1996, S.O. 1996, c. 17, Schedule A;
"Agricorp Database" means the business information Agricorp has collected in relation to the delivery of Ministry programs;
"ANS" means allowable net sales;
"Applicant" includes both a Deemed Applicant and a Non-Deemed Applicant, unless the context indicates otherwise;
"CRA BN" means the business number Canada Revenue Agency has issued to the Person pursuant to the Income Tax Act (Canada);
"Crown" means Her Majesty the Queen in Right of Ontario;
"Deemed Applicant" means a Person who meets the eligibility requirements set out under 4.1 of these Guidelines;
"Deemed Participant" means a Person that meets the eligibility requirements set out under section 4.3.1 of these Guidelines;
"Eligible Commodity" means a commodity set out under Appendix One to these Guidelines;
"Guidelines" means this document;
"Minister" means the Minister of Agriculture, Food and Rural Affairs or any such other Minister who may be designated from time to time as the responsible Minister in relation to the Program in accordance with the Executive Council Act, R.S.O. 1990, c. E. 25, unless the context indicates otherwise;
"Ministry" means the Ministry of Agriculture, Food and Rural Affairs and includes a successor entity;
"Non-Deemed Applicant" means a Person that meets the eligibility requirements set out under section 4.2 of these Guidelines;
"Non-Deemed Participant" means a Person that meets the eligibility requirements set out under section 4.3.2 of these Guidelines;
"Notice" means a notice sent to a Participant under section 4.6.5 b) of these Guidelines;
"Order" means this Minister's Order, Minister's Order Number 0001-2018, as it may be amended from time to time;
"OSDRMP" means the Ontario Self-Directed Risk Management Program, as established under Order-in-Council 1311/2011, as amended;
"Overpayment" means any Program Payment to which the Participant is not entitled to receive at the time of the Program Payment or to which the Participant ceases to be entitled to receive at any time after the Program Payment was made;
"Participant" includes both a Deemed Participant and a Non-Deemed Participant, unless the context indicates otherwise;
"Person" for the purposes of this Order includes:
"Premise ID Number" means a nationally unique identifier assigned by Ontario pursuant to Order-in-Council 926/2017, or any other order dealing with the Provincial Premises Registry Program, to a parcel of land that is associated with agri-food or agri-based product activities;
"Program" means the Ontario Edible Horticultural Support Program;
"Program Administrator" means the Director of Farm Finance Branch - Policy Division, and includes any acting Director of Farm Finance Branch - Policy Division, of the Ministry as well as any successor position;
"Program Payment" means the provision funds to a Participant under the Program;
"Program Year" means April 1 of one calendar year to March 31 of the immediately following calendar year;
"Recipient" means a Person that receives a Program Payment under the Program;
"Requirements Of Law" means all applicable statutes, regulations, by-laws, ordinances, codes, official plans, rules, approvals, permits, licences, authorizations, orders, decrees, injunctions, directions, Guidelines and agreements with all authorities that now or at any time hereafter may relate to the Applicant, the Project or both;
"SIN" means Social Insurance Number; and
"Tax Data" means the forms the Participant previously submitted to the Canada Revenue Agency, and may include the forms T1163, the T2042, or the Statement "A" the Participant previously submitted to Agricorp, upon which the ANS will be calculated.
The purpose of the Program is to provide financial support to help small and medium-sized agricultural operators producing Eligible Commodities in the edible horticultural sector adjust to the changing small business environment.
The Program will provide up to $30 million dollars annually for two years to eligible Participants. Program Payments may be prorated, if necessary.
3.1 - Commencement of the Program
The Program commenced on February 6, 2018.
3.2 - Termination of the Program
The Program will terminate no later than March 31, 2020. The Program may terminate before March 31, 2020 in one of two ways.
3.2.1 Termination of Program for Insufficient Appropriation
If the Program terminates because there has been an insufficient appropriation for any payment that is to be made under the Program, the following will occur:
3.2.2. Termination of Program by Minister
If the Program terminates because the Minister is of the opinion the Program should terminate, the following will occur:
4.1 - Deemed Applicants
A person may be considered a Deemed Applicant in one of the following three ways.
4.1.1 Fully Enrolled Under OSDRMP
A person will be considered a Deemed Applicant under the Program if that person was:
4.1.2 Issued Deposit Notice Under OSDRMP and Provides Valid Premise ID Number Under the Program
A person will be considered a Deemed Applicant under the Program if that person:
4.1.3 Not A Participant Under OSDRMP But Had ANS Greater Than $5,000.00 For Eligible Commodities
A person will be considered a Deemed Applicant under the Program if that person:
4.2 - Non-Deemed Applicants
A person will be considered to be a Non-Deemed Applicant under the Program if that person:
4.3 - Eligibility Requirements
No Person will be considered eligible to participate in the Program unless that Person meets all the eligibility requirements under section 4.3.1 or section 4.3.2 of these Guidelines.
4.3.1 Deemed Participants
To participate under the Program as a Deemed Participant, a Person must:
4.3.2 Non-Deemed Participants
To participate under the Program as a Non-Deemed Participant, a Person must:
4.4 - Partnerships
Persons operating under a partnership will:
4.5 - Eligible Commodities
A Participant's ANS will only be calculated based on Eligible Commodities. Eligible Commodities are those commodities set out under Appendix 1 to these Guidelines.
4.6 - Payments
All Program Payments made under the Program will be calculated based on what is set out under this section 4.6 of these Guidelines.
4.6.1 Methods of Accounting
If a Participant is also participating in AgriStability or the OSDRMP, the method of accounting the Participant uses in AgriStability or the OSDRMP must be followed under the Program. If a Participant is not participating in either AgriStability or the OSDRMP, the method of accounting the Participant uses must be the same as the Participant uses on their Tax Data as filed with the CRA or Agricorp.
4.6.2 Allowable Net Sales
ANS are the net total of a Participant's gross sales of Eligible Commodities, less the purchase costs of those Eligible Commodities.
Claims for payments under AgriInsurance for an Eligible Commodity production will be considered an eligible income for the purposes of calculating a Participant's ANS.
4.6.3 Processing and/or Resale of Like Products
The income and expense associated with the purchase and resale of an Eligible Commodity without any further processing are non-allowable. An example is a Person who purchases produce and simply resells the produce without any processing.
Processing is defined as a changing of state. For example: strawberries to jam.
The income and expense associated with the processing of purchased commodities not produced on the Participant's operation are allowable if:
Agricorp will consider the above in determining whether processing income and expense should be considered allowable. This is consistent with AgriStability rules.
4.6.4 Calculation of Program Payment
A. Calculation of Program Payments for Deemed Participants
A Deemed Participant's 2018 Program Year Program Payment will be calculated by using that Participant's 2016 ANS and the tiers set out under section 4.6.4C and prorated under section 4.6.4D of these Guidelines.
A Deemed Participant's 2019 Program Year Program Payment will be calculated by using that Participant's 2017 ANS and the tiers set out under section 4.6.4C and prorated under section 4.6.4D of these Guidelines.
B. Calculation of Program Payments for Non-Deemed Participants
A Non-Deemed Participant's 2018 Program Year Program Payment will be calculated by using that Non-Deemed Participant's 2017 ANS, which will be based on that Non-Deemed Participant's 2017 Tax Data and sections 4.6.1 to 4.6.3, as well as sections 4.6.4C and 4.6.4D of these Guidelines.
A Non-Deemed Participant's 2019 Program Year Program Payment will be calculated by using that Non-Deemed Participant's 2018 ANS, which will be based on that Non-Deemed Participant's 2018 Tax Data and sections 4.6.1 to 4.6.3, as well as section 4.6.4C and 4.6.4D of these Guidelines.
If a producer participated in the 2018 Program Year as a Non-Deemed Participant, that producer will also be treated as a Non-Deemed Participant in the 2019 Program Year as well.
C. Initial Calculation
Agricorp will conduct an initial calculation of a Participant's Program Payment based on the size of the Participant's farming operation, with smaller operations receiving relatively larger payments. The initial calculation of a Participant's Program Payment will be the sum of a Participant's ANS under each tier multiplied by the associated rate.
The tier and associated rate that will be used for the initial calculation of a Participant's Program Payment for both the 2018 and 2019 Program Years will be as follows:
Any remaining ANS greater than ten million dollars ($10,000,000.00) is not eligible for a Program Payment calculation.
D. Proration Calculation
Agricorp will provide the Ministry with the total aggregate of all initial calculations under section 4.6.4C of these Guidelines. The Ministry will then provide Agricorp with the proration number so that the aggregate of all Program Payments do not exceed the funding available for each Program Year. Agricorp will then apply the proration number against a Participant's initial calculation to arrive that the Participant's Program Payment for the Program Year.
4.6.5 Making Payments
Agricorp will make Program Payments to Participants in accordance with the following:
4.7 - Payment linkages
Payments made under the Program will not be subject to revisions due to amendments to a Participant's SDRM calculated benefit or their Tax Data, with the exception of the discovery by the Service Provider of significant or impactful information, or the provision of what was false or misleading data.
5.1 - Request for Reconsideration
Applicants or Participants that are not satisfied with a decision made in regards to:
5.2 - Timing to Make Request for Reconsideration
An Applicant or Participant that is not satisfied with a decision relating to what is set out under section 5.1 of these Guidelines must make the request for reconsideration to Agricorp within ninety (90) calendar days of receiving the decision the Applicant or Participant wants to have reconsidered. No request for reconsideration will be considered if it is made after ninety (90) calendar days of when the Applicant or Participant received the decision the Applicant or Participant wants to have reconsidered.
5.3 - No Request for Reconsideration to the Business Risk Management Review Committee
No request for reconsideration may be made to the Business Risk Management Review Committee, as established under Order-in-Council 1310/2011, in relation to any decision made under the Program.
5.4 - Request for Reconsideration Decision
Any decision made in relation to an Applicant or Participant's request for reconsideration is final.
6.0 Collection, Use and Disclosure of Information and Audits Under the Ontario Edible Horticultural Support Program
6.1 - Collection, Use And Disclosure Of Information
6.1.1 Consent to Collection, Use and Disclosure of Information
Applicants/Participants/Recipients consent to the collection of any information that is reasonably necessary for the administration of the Program. This includes personal information within the meaning of the Freedom of Information and Protection of Privacy Act.
Applicants/Participants/Recipients consent to the use and disclosure of information for the purposes of:
6.2 - Audits
6.2.1 Provision of Information
Applicants/Participants/Recipients will provide any information that is requested within ten (10) Business Days of the request unless more time has been provided in the request.
6.2.2 Retention of Records
Recipients will retain all records relating to any Program Payments under the Program for a period of at least seven (7) years from the date in which the Program Payment was received.
6.2.3 Consent to Audits
Applicants/Participants/Recipients consent to any audits that may be conducted in relation to the Program.
6.2.4 Provision of Reasonable Assistance
Applicants/Participants/Recipients will provide reasonable assistance during any audit. This includes allowing access to any person, place or thing required for auditing purposes within ten (10) Business Days of the request being made unless more time has been provided in the request.
6.2.5 Authorization to Collect Information
Applicants/Participants/Recipients authorize both the Ministry and Agricorp to collect information from any government department/ministry, agency or third party for the purposes of verifying any information that the Applicant/Participant/Recipient provided as well as for the enforcement of the terms and conditions of the Program.
6.2.6 Consent to Disclosure of Information
Applicants/Participants/Recipients consent to the use and disclosure of any information the Ministry or Agricorp collects under the Program to any government department/ministry, agency or third party for the purposes of verifying any information that the Applicant/Participant/Recipient provided as well as for the enforcement of the terms and conditions of the Program.
6.2.7 Consent to Collect Social Insurance Number
A Participant in the Program participating as a sole proprietor, a partner within a partnership or a member of an unincorporated association authorizes Agricorp to collect and use that Participant's SIN where that Participant does not have a CRA BN and that Participant is eligible to receive a Payment under the Program.
6.2.8 Limits on Using a Participant's Social Insurance Number
Agricorp will only use a Participant's SIN for the purposes set out under section 6.1.2 of these Guidelines.
6.2.9 Consent to Disclose Participant's Social Insurance Number
Where Agricorp collects a Participant's SIN, the Participant consents to Agricorp disclosing that Participant's SIN to any government department/ministry, agency or third party for the purposes set out under section 6.1.2 of these Guidelines.
7.1 - No Legal Entitlement or Right to Payment
Participation in the Program does not create any legal entitlement or other right to any Program Payment under the Program.
7.2 - Program Payments and Treatment Under AgriStability
Program Payments are not considered to be allowable income for AgriStability in the current program year's production margin. Program Payments are not considered allowable income in a Participant's reference margin.
7.3 - Program Payments and Tax Treatment
Program Payments will be considered as income for tax purposes at the time the Program Payment is made. Agricorp will issue an AGR-1 Statement of Farm Support Payment to each Recipient.
7.4 - Program Payments are not Security
Program Payments cannot be used for any type of security purposes.
7.5 - No Assignment of Payment
Program Payments cannot be assigned to a third party.
7.6 - Debt Owing to the Crown
If a Participant owes a debt to the Crown, any Program Payment the Participant is eligible to receive under the Program will be recovered in a manner that is consistent with the Ministry's collection practice.
7.7 - Overpayment
If a Recipient receives a Program Payment the Recipient was not eligible to receive, that Program Payment will be considered an overpayment and will be recovered in a manner that is consistent with the Ministry's collection practice. The termination of the Program will not, in any way, affect a Recipient's obligation to repay any overpayment the Recipient received under the Program.
7.8 - Loss Of Eligibility to Participate in Program
A Participant may lose his/her/its ability to participate in the Program in three ways.
7.8.1 Loss of Eligibility for Willfully Providing False or Misleading Information
If a Participant willfully provides false or misleading information under the Program, that Participant:
7.8.2 Loss of Eligibility for Providing False or Misleading Information or Being Negligent in Allowing False or Misleading Information to be Submitted
If a Participant provides false or misleading information or is negligent in allowing for the submission of false or misleading information under the Program, that Participant:
7.8.3 Loss of Eligibility for Being Abusive to Ministry or Agricorp Staff
If a Participant is abusive toward any Ministry or Agricorp staff will receive one written warning. If the Participant continues with said abusive behavior, that Participant:
7.9 - Funding Part of a Social or Economic Policy and Program is a Social or Economic Program
By participating in the Program, the Participant agrees that the funding for the Program is being provided in connection with a social or economic policy and the Program is considered to be a social or economic program.
7.10 - Amendment of Guidelines
These Guidelines may be amended from time to time. Where these Guidelines are amended, the following will apply:
Herbs and Spices
Vegetables - Greenhouse
Note: Production Insurance (AgriInsurance) claim payments for Eligible Commodity production associated with the corresponding Program Year will be part of the ANS calculation.
* Income from phase 3 compost (compost containing spawn) is not eligible income for SDRM
For more information:
Toll Free: 1-877-424-1300