Minister's Order: Canadian Agricultural Partnership Business Risk Management Theme Program [0004/2018]

Whereas the agriculture, agri-food and agri-based products sector provides an important economic and social contribution within Ontario;

And whereas the responsibility for agriculture within Ontario is shared between Canada and Ontario and both Canada and Ontario have a long history of collaboration in working toward a prosperous agriculture, agri-food and agri-based products sector within Ontario;

And whereas the agriculture, agri-food and agri-based products sector is operating in a rapidly changing global environment where demand is rising in response to ever-growing population, rising incomes and increased non-food uses of agricultural products;

And whereas on July 21, 2017, the majority of Ministers responsible for agriculture across Canada endorsed the Canadian Agricultural Partnership, which sets out the broad parameters for the Canadian Agricultural Partnership Framework, which will replace Growing Forward 2;

And whereas the intent of the CAPA is to achieve a prosperous, sustainable, competitive and innovative agriculture, agri-food and agri-products sector that is market-responsive and that anticipates and adapts to changing circumstances within Canada as a whole;

And whereas Ontario supports the underlying purposes of the CAPA;

And whereas Ontario signed the CAPA on January 19, 2018;

And whereas the CAPA consists of two general overarching themes: (1) the business risk management theme, which is aimed at helping producers mitigate against the inherent risks involved in producing agricultural products; and (2) the non-business risk management theme, which is aimed at promoting the sustainable growth, innovation and competitiveness of the agriculture, agri-foods and agri-products sector;

And whereas section 4 of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister with the authority in relation to the administration of laws relating to agriculture, food and rural affairs and all of their branches;

And whereas section 6.2(1) of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister of Agriculture, Food and Rural Affairs with the authority to establish programs for the encouragement of agriculture, food and rural affairs within Ontario;

And whereas I believe that such a program should be established to encourage agriculture, food and rural affairs within Ontario;

Now therefore and pursuant to my authority under sections 4 and 6.2(1) of the Ministry of Agriculture, Food and Rural Affairs Act, the program known as the

Canadian Agricultural Partnership Business Risk Management Theme Program

which continues the Previous Components, as amended by this Order, is hereby established for the encouragement of agriculture, food and rural affairs within Ontario, as of April 1, 2018.

Part I – Interpretation

Interpretation

  1. For the purposes of interpreting this Order:
    1. Words in the singular include the plural and vice versa;
    2. Words in one gender include all genders;
    3. The headings do not form part of this Order – they are for reference purposes only and will not affect the interpretation of this Order;
    4. Any reference to dollars or currency in this Order will be to Canadian dollars and currency;
    5. Any reference to a statute means a statute of the Province of Ontario, unless otherwise indicated;
    6. Any reference to a statute is to that statute and to the regulations made pursuant to that statute as they may be amended from time to time and to any statute or regulations that may be passed that have the effect of supplanting or superseding that statute or regulation unless a provision of this Order provides otherwise; and
    7. The words "include", "includes" and "including" denote that the subsequent list is not exhaustive.

Definitions

  1. For the purposes of this Order, the terms below will have the following meanings:

     "Administrator" means the Person responsible for delivering all or part of one or more Components of the Program on behalf of the Program Administrator;

    "Administrator Agreement" means an agreement between Ontario and the Administrator whereby the Administrator agrees to undertake certain work in return for an Administrator Payment.

    "Administrator Payment" means the payment of money to an Administrator to cover the expenses the Administrator incurs pursuant to an Administrator Agreement;

    "AgriInsurance" means the program continued under Part X of this Order;

    "AgriInvest" means the program continued under Part IX of this Order;

    "AgriRecovery" means the program continued under Part XI of this Order;

    "AgriStability" means the program continued under Part VIII of this Order;

    "Applicant" means a Person who applies to a Component;

    "Business Day" means any working day, Monday to Friday inclusive, but excluding statutory and other holidays on which the Ministry has elected to be closed for business;

    "Canada" means Her Majesty the Queen in Right of Canada, unless the context indicates otherwise;

    "CAPA" means the agreement entitled "Canadian Agricultural Partnership – A Federal-Provincial-Territorial Framework Agreement On Agriculture, Agri-Food and Agri-Based Products Policy";

    "Component" means AgriInsurance, AgriInvest, AgriRecovery or AgriStability, including any combination thereof, as set out under this Order;

    "CRA BN" means the business number Canada Revenue Agency issued to the Person pursuant to the Income Tax Act (Canada);

    "Fiscal Year" means the period between April 1 of one year and March 31 of the following year;

    "Guidelines" means the written document setting out the requirements, terms and conditions governing the operation of a Component under the Program that is in addition to what is set out under this Order and include the following:

    1. The AgriStability Guidelines, as set out in Part VIII of this Order,
    2. The AgriInvest Guidelines, as set out in Part IX of this Order,
    3. The Operational Document, as set out in Part X of this Order, and
    4. The AgriRecovery Guidelines, as set out under Part XI of this Order;

    "Growing Forward 2" means the agreement entitled "Growing Forward 2 – A Federal-Provincial-Territorial Framework Agreement On Agriculture, Agri-Food and Agri-Based Products Policy" as it relates to the Previous Components, as continued under the OIC;

    "Ministry" means the Ministry of Agriculture, Food and Rural Affairs and includes a successor entity;

    "OIC" means Order-in-Council 312/2013;

    "Ontario" means Her Majesty the Queen in Right of Ontario, unless the context indicates otherwise;

    "Order" means this Minister's Order, Minister's Order Number 0004/2018, as it may be amended from time to time;

    "Overpayment" means any payment to which a Person is not entitled to receive at the time of the payment or to which the Person ceases to be entitled to receive at any time after the payment was made;

    "Participant" means a Person that has been accepted to participate in a Component;

    "Person" means:

    1. An individual,
    2. A corporation,
    3. A partnership, or
    4. An unincorporated association;

    "Previous Components" means AgriInsurance, AgriInvest, AgriRecovery or AgriStability, including any combination thereof, as set out under the OIC;

    "Program" means the Canadian Agricultural Partnership Business Risk Management Theme Program and includes all Components continued under this Order;

    "Program Administrator" means the Assistant Deputy Minister – Policy Division of the Ministry, and includes any acting Assistant Deputy Minister – Policy Division of the Ministry, as well as any successor position;

    "Program Operator" means the Director of Farm Finance Branch – Policy Division of the Ministry, and includes any acting Director of Farm Finance Branch – Policy Division of the Ministry, as well as any successor position;

    "Program Payment" means the direct or indirect provision of funds to a Recipient under a Component and includes any indemnity paid to an Insured Producer under a Contract Of Insurance, as defined under section 82 of this Order;

    "Recipient" means a Person who receives a Program Payment under a Component;

    "Requirements Of Law" means all applicable statutes, regulations, by-laws, ordinances, codes, official plans, rules, Guidelines, approvals, permits, licences, authorizations, orders, decrees, injunctions, directions and agreements, as they may be amended from time to time, with all authorities that now or at any time hereafter may relate to the Applicant/Participant/Recipient's business operations, the Component or both; and

    "SIN" means Social Insurance Number.

Purpose

  1. The purpose of the Program is to set out an integrated, comprehensive framework to support a profitable, adaptable, sustainable and competitive agricultural industry in Ontario.

Part II – Term

Commencement

  1. The Program will continue the Previous Components, as amended by this Order, effective as of April 1, 2018.

Transition

  1. (1) Nothing in this Order affects any rights or obligations set out under or arising from the Previous Components.

    (2) All applications or claims that were submitted under a Previous Component will be governed by the requirements, terms and conditions set out for those Previous Components.

Termination

  1. (1) The Components will not have a termination date, but may be terminated in accordance with sections 6(2) or 6(3) of this Order.

    (2) Despite anything else contained in this Order, one or more Components will terminate in the event the Program Administrator is of the opinion that there is an insufficient appropriation from the Parliament of Canada or Legislature of Ontario for any Program Payment that is to be made under that Component. Where a Component terminates pursuant to this section 6(2) of the Order, the following will apply:
    1. The Program Operator will post a notice on the Ministry's website indicating that the Component has been terminated and the date it was terminated; or
    2. The Program Operator will immediately provide notice of the termination to any Administrator that is delivering the Component and cause that Administrator to post a notice on its website indicating that Component has been terminated and the date that it was terminated; and
    3. Any claims for a Program Payment currently being considered under the Component as of the date of termination will not be paid.

    (3) Despite anything else contained in this Order, one or more Components may be terminated through the issuance of a Minister's Order terminating that Component. Where a Minister's Order is issued terminating one or more Components, the following will apply:

    1. The Program Operator will post a notice on the Ministry's website where a copy of this Order is posted, along with a copy of the Minister's Order terminating the Component, indicating that the Component has been terminated and the date that Component was terminated; or
    2. The Program Operator will immediately provide notice of the termination to any Administrator that is delivering that Component and cause that Administrator to post a notice on its website indicating that Component has been terminated and the date that it was terminated; and
    3. Any eligible claims for a Program Payment currently being considered under the Component as of the date of termination will be paid.

    (4) For greater certainty, the termination of a Component within the Program does not terminate the other Components within the Program or the Program itself.

Part III – Funding

  1. Funding for the Program will be from the monies allocated to the Ministry by the Legislature for the purposes of the Program. The Program Administrator may provide funding or allow funding to be provided to any Person that is contemplated or permitted under any Component of the Program. The Program Administrator may also pay for or allow payments to be made for any administrative costs the Program Administrator determines are reasonable or prudent for the administration of any Component under the Program.
  2. Funding for the Program will only be used for the Program and the costs to administer the Program.

Part IV – Administration

Program Administrator's Authority

  1. The Program Administrator will be responsible for the overall administration of all Components within the Program. This includes:
    1. Approving and signing the Guidelines for each Component, including any amendments thereto;
    2. Entering into one or more Administrator Agreements with one or more Administrators; and
    3. Approving anything that needs to be approved for each Component that has not been assigned to the Program Operator.

Program Operator's Authority

  1. (1) The Program Operator will be responsible for the implementation and operation of all Components under the Program. This includes:
    1. Establishing standards and procedures for the delivery of each Component;
    2. Monitoring the performance of all aspects of each Component;
    3. Monitoring any Administrator's delivery of a Component;
    4. Making decisions pursuant to sections 10(2), 10(3), 15, 16, 17 and 18 of this Order; and
    5. Carrying out all other administrative functions required for the successful operation of each Component and the Program as a whole.

    (2) The Program Operator may allow a Person to continue participating in a Component even if that Person does not meet all of the eligibility requirements set out under this Order, provided:

    1. The Person was originally found to be eligible to participate in the Component;
    2. The Person acted in good faith to be found eligible to participate in the Component;
    3. The Person acted in good faith while participating in the Component;
    4. The Program Operator's decision will not result in Ontario being in breach of any term or condition set out under the CAPA or any guidelines thereunder in respect of the Component; and
    5. The Program Operator is of the opinion that not allowing the Person to continue participating in the Component would create an unfair result for that Person.

    (3) The Program Operator may waive any requirement for a Component set out in this Order or the Guidelines, provided:

    1. The waiver will not result in Ontario being in breach of any term or condition set out under the CAPA or any guidelines thereunder in respect of the Component; and
    2. The Program Operator is of the opinion that not providing such a waiver would create an unfair result for the Person requesting the waiver.

    (4) The Program Operator may impose conditions on any waiver the Program Operator provides under section 10(3) of this Order, provided those conditions do not result in a breach of any term or condition set out under the CAPA or any guidelines thereunder in respect of the Component.

Administrator

  1. (1) The Program Administrator may enter into an agreement with one or more Administrators.

    (2) If the Program Administrator enters into an agreement with an Administrator, that agreement will include, at a minimum, the following:
    1. The roles and responsibilities of the Program Administrator and the Administrator regarding the delivery of the Component;
    2. The Administrator Payment the Administrator will receive;
    3. Service standards, if any, the Administrator will be required to meet;
    4. Reporting and audit requirements;
    5. Provisions for corrective action to address any events of default by the Administrator; and
    6. Anything else the Program Administrator believes is prudent for the successful delivery of the Component.

    (3) The Program Administrator will not make an Administrative Payment or allow an Administrative Payment to be made to an Administrator unless that Administrator is in compliance with the terms and conditions of this Order and the Administrator Agreement.

Exercise of Administrative Powers

  1. The Program Administrator and the Program Operator have all necessary authority to deliver the Program.

Guidelines

  1. (1) The Program Administrator will create or cause to be created Guidelines for each Component. The Guidelines will not conflict with anything contained in this Order. For the purposes of determining whether the Guidelines conflict with this Order, a conflict will exist if the Guidelines provide for something that is prohibited under this Order or if the Guidelines provide that something is not needed which this Order requires.

    (2) Without limiting the Program Administrator's general administrative authority set out in sections 9 and 13(1) of this Order, the Program Administrator's authority to create or cause to be created Guidelines for each Component includes the authority to set out, or cause to be set out, the requirements, terms and conditions in the Guidelines in relation to:
    1. Setting out administrative deadlines for a Component in the Guidelines;
    2. Setting out eligible and ineligible costs under a Component in the Guidelines;
    3. Establishing the requirements, terms and conditions for any Program Payments that may be made under a Component in the Guidelines, including:
      1. The methodology in which Program Payments may be calculated,
      2. Caps on any Program Payments,
      3. Minimum Program Payments,
      4. The timing of Program Payments, and
      5. Whether Program Payments can be assigned;
    4. Setting out reporting and audit requirements for a Component in the Guidelines that are in addition to what is set out under this Order;
    5. Setting out any review and/or appeal rights that an Applicant or Participant may have under a Component in the Guidelines that are not set out in this Order;
    6. Setting out how documents are to be served under a Component in the Guidelines;
    7. Setting out any requirements for a Component that must be set out in the Guidelines under this Order in the Guidelines; and
    8. Establishing any other requirements, terms or conditions that are reasonably necessary for the successful administration and delivery of a Component in the Guidelines.

    (3) The Program Administrator will:

    1. Post the Guidelines or cause the Guidelines to be posted on the Ministry's website or will require the Guidelines to be posted on a publicly available website; or
    2. Require an Administrator or cause the Administrator to post the Guidelines on that Administrator's website.

    (4) The Guidelines are not required to be posted until after this Order comes into force.

    (5) The Program Administrator may amend the Guidelines or require an Administrator or cause the Administrator that is responsible for the Guidelines to amend the Guidelines. Where the Guidelines are amended, the following will apply:

    1. The amended Guidelines will:
      1. Be posted on the Ministry's website or on another publicly available website, or
      2. Be posted on the website of the Administrator delivering the Component; and
    2. Any changes to the Guideline will not have any retroactive effect.

Part V – General Eligibility Requirements and Loss of Eligibility

Eligibility Requirements

  1. (1) No Applicant will be considered eligible to participate in any Component unless that Applicant meets all of the eligibility requirements set out under this Part V of the Order as well as any additional eligibility requirements for the Component in which the application relates, as set out under Parts VIII, IX, X or XI of this Order.

    (2) At a minimum, the Applicant will meet the following general eligibility requirements in order to be eligible to participate in any Component:
    1. Be a Person;
    2. Apply to the Component using an approved application form;
    3. Submit a completed application form for the Component by the applicable deadline set out in the Component's Guideline;
    4. Provide:
      1. Its CRA BN on the application form to the Component, or
      2. Its SIN if the Applicant is not eligible to receive a CRA BN and that Applicant is eligible to receive a Program Payment under the Component prior to receiving the Program Payment;
    5. Agrees to be bound by the requirements, terms and conditions of the Component, as set out in this Order and that Component's Guidelines;
    6. Has not lost its eligibility to participate in a Component pursuant to sections 15, 16, 17 or 18 of this Order; and
    7. Is in material compliance with, agrees to remain in material compliance with, as well as remains in material compliance with all Requirements Of Law.

Loss of Eligibility

  1. An Applicant/Participant/Recipient that willfully provides false or misleading information under a Component:
    1. May have their eligibility to continue to participate in the Component revoked for the remainder of that Component's Program Year and may lose their eligibility to participate in that Component for up to an additional two Program Years thereafter;
    2. May have their eligibility to continue to participate in any other Component revoked for the remainder of that Component's Program Year and may lose their eligibility to participate in any other Component under the Program for up to an additional two Program Years; and
    3. Will repay any Program Payment that was received under the Component.
  2. An Applicant/Participant/Recipient that provides false or misleading information or is found to have acted in a negligent manner in regards of allowing false or misleading information to be submitted on the Applicant/Participant/Recipient's behalf under a Component:
    1. May have their eligibility to continue to participate in the Component revoked for the remainder of that Component's Program Year and may lose their eligibility to participate in the Component for up to the next full Program Year; and
    2. Will repay any Program Payment that was received under the Component.
  3. (1) An Applicant/Participant/Recipient that is abusive toward any staff responsible for delivering a Component will receive one written warning from the Program Administrator. If the Applicant/Participant/Recipient continues with his/her/its/their abusive behavior, the Applicant/Participant/Recipient:
    1. May have their eligibility to continue to participate in the Component in which the abusive behavior relates revoked for the remainder of that Component's Program Year; and
    2. May lose their eligibility to participate in the Component in which the abusive behavior relates for the next full Program Year.

    (2) In the event that an Applicant/Participant/Recipient has been found to be ineligible to participate in a Component pursuant to section 17(1) of this Order and that Applicant/Participant/Recipient is abusive toward any staff responsible for delivering a Component after being allowed to participate in that Component, the Applicant/Participant/Recipient

    1. May have their eligibility to continue to participate in any Component revoked for the remainder of those Component's Program Year; and
    2. May lose their eligibility to participate in any Component continued under this Order while this Order is in effect.
  1. An Applicant/Participant may be found to be ineligible to participate in a Component where that Applicant/Participant:
    1. Owes a debt to the Crown and is not in a repayment plan with the Crown, including an agent of the Crown; or
    2. Is not in compliance with any repayment plan the Applicant/Participant has with the Crown, including an agent of the Crown

 Part VI – Program Payments

  1. Applying to a Component does not create a legal right to:
    1. Be enrolled in that Component; or
    2. Receive a Program Payment under that Component.
  2. The Program Administrator and the Program Operator will not issue a Program Payment under a Component or allow an Administrator to issue a Program Payment unless the claim for that Program Payment is supported by adequate evidence showing the claim is valid.
  3. Recipients will report Program Payments provided under a Component as income under the Income Tax Act (Canada), provided such a Program Payment is considered income within the meaning of the Income Tax Act (Canada).
  4. A Recipient will not assign any Program Payments made under a Component to a third party unless that assignment is authorized:
    1. By the Component's Guidelines; or
    2. By the Program Operator in writing prior to the assignment.

Part VII – Collection, Use and Disclosure of Information and Audits under the Program

Consent to Collection, Use and Disclosure of Information

  1. Applicants/Participants/Recipients will consent to the collection of any personal information, as defined under the Freedom of Information and Protection of Privacy Act, that is reasonably necessary for the administration of that Component.
  2. Applicants/Participants/Recipients will consent to the use and disclosure of any personal information that is collected pursuant to section 23 of this Order, for the purposes of:
    1. Verifying any information that has been provided;
    2. Confirming the Recipient has paid taxes on any Program Payments that the Recipient received under the Component;
    3. Conducting audits;
    4. Enforcing the terms and conditions of the Component;
    5. Collecting any debts owing in relation to the Component; an
    6. Any other use set out in the Guidelines.
  3. Applications to a Component will contain a notice of collection of personal information and require the Applicant to indicate the Applicant consents to the collection of that personal information as well as for the use and disclosure of that information for the purposes set out under section 24 of this Order.

Audits

  1. Applicants/Participants/Recipients will provide any information that is requested within ten (10) Business Days of the request unless the request for information contains a different deadline, in which case the information will be provided in accordance with that request for information.
  2. A Recipient will retain all records relating to any Program Payments under a Component for a period of at least seven (7) years from the date in which the Recipient received the Program Payment.
  3. Applicants/Participants/Recipients will consent to any audits that may be conducted in relation to that Component.
  4. 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 for access to that person, place or thing unless the request or access to that person, place or thing contains a different deadline, in which case access to the person, place or thing will be provided in accordance with that request for access to the person, place or thing.
  5. Applicants/Participants/Recipients will authorize the collection of information from any government department/ministry, agency or third party for the purposes of verifying any information that was provided as well as for the enforcement of the terms and conditions of the Component.
  6. Applicants/Participants/Recipients will consent to the use and disclosure of any information that may have been collected under section 30 of this Order to any government department/ministry, agency or third party for the purposes of verifying any information that was provided as well as for the enforcement of the terms and conditions of the Component.
  7. (1) A Participant in a Component participating as a sole proprietor, a partner within a partnership or a member of an unincorporated association authorizes the collection and use of that Participant's SIN where that Participant does not have a CRA BN and that Participant is eligible to receive a Program Payment under the Component.

    (2) Where a Participant's SIN under a Component is collected, that Participant's SIN may only be used for the purposes set out under section 24 of this Order.

    (3) Where a Participant's SIN is collected, that Participant consents to the disclosure of that Participant's SIN to any government department/ministry, agency or third party for the purposes set out under section 24 of this Order.
  1. Applications for a Component will contain a notice about the audit rights set out under this Part VI of the Order and require the Applicant to indicate the Applicant consents to having audits conducted, if required.

Part VIII – AgriStability

  1. AgriStability, as continued under Part VII of the OIC is continued under this Order, subject to the requirements set out in this Part VIII of the Order.

Interpretation

Definitions
  1. For the purposes of this Part VIII of the Order, the terms below will have the following meanings:

    "Account" means an account established under section 41(1) of this Order;

    "Applicant" means a Person who has applied to participate in AgriStability;

    "BRMRC" means the Business Risk Management Review Committee, as established by Order-in-Council 1310/2011, as amended, and includes any successor entity;

    "Eligible Production Input Cost" includes all input costs directly related to production that are eligible to be deducted from Farm Revenue in the calculation of the current year's Production Margin and Reference Margin, as set out in the AgriStability Guidelines;

    "Farm Revenue" means farm income as reported for income tax purposes under the Income Tax Act (Canada), or for Participants exempt from taxation, as would be reportable for income tax purposes, subject to any limitations set out in the AgriStability Guidelines, and includes AgriInsurance payments but excludes other Component Program Payments under the Program; and, for the Production Margin calculation in the Program Year only, includes payments made under legislation administered and enforced by the Canadian Food Inspection Agency (or successor entity) that are reportable as farm income for income tax purposes under the Income Tax Act (Canada) and other income support programs agreed to in a bilateral agreement between Canada and Ontario under the CAPA;

    "Fund 1" means the fund to which all amounts a Participant pays under AgriStability;

    "Fund 2" means the fund to which all amounts paid by Canada or Ontario in respect of a Participant under AgriStability are credited;

    "Guidelines" means the written document setting out the requirements, terms and conditions governing the operation of AgriStability that are in addition to what is set out under this Part VIII of the Order;

    "Interim Payment" means an advance Payment that is made to a Participant based on an estimate of the Participant's margin decline in the current Program Year, relative to the Participant's estimated Reference Margin.

    "Margin Decline" means, with respect to a Program Year, the difference between a Participant's Production Margin for that Program Year and the Participant's Reference Margin for that Program Year;

    "Margin Decline Ratio" means, with respect to a Program Year, the ratio between a Participant's Margin Decline for that Program Year and the Participant's Reference Margin for that Program Year;

    "Maximum Government Contribution" means three million dollars ($3,000,000.00), which is the maximum contribution from both Canada and Ontario under AgriStability in a Program Year, or such other lesser amount as is specified in the Guidelines;

    "Minimum Government Contribution" means two hundred fifty dollars ($250.00), which is the minimum contribution from both Canada and Ontario under AgriStability in a Program Year, or such other amount as is specified in the Guidelines;

    "Minimum Participant Contribution" means forty-five dollars ($45.00), or such other amount as is specified in the Guidelines;

    "National Program Advisory Committee" means the committee established pursuant to section 5 of the Farm Income Protection Act (Canada);

    "Participant Contribution" means the contribution calculated under section 39 of this Order;

    "Production Margin" means the difference between Farm Revenue and Eligible Production Input Costs, subject to adjustments made under section 42(2) of this Order;

    "Program Year" means the period for which the Participant files a return under the Income Tax Act (Canada), or for Participants who are not required to file a return under the Income Tax Act (Canada), the calendar year;

    "Reference Margin" means the amount determined under sections 43 to 47 of this Order; and

    "Supply Managed Commodities" means those commodities coming within the provisions of the Canadian Dairy Commission Act (Canada) or for which national marketing agencies have been established under Part II of the Farm Products Agencies Act (Canada).

Purpose

  1. The purpose of AgriStability is to provide Participants with effective tools to manage business risks specific to the agricultural sector that are beyond the Participant's control. AgriStability is a margin-based program that provides Participants with a Program Payment when a Participant experiences larger income losses.

Program Operation

Eligibility Requirements
  1. (1) No Applicant will be eligible to participate in AgriStability unless that Applicant meets all of the requirements set out in section 14(2) of this Order and this Part VIII of the Order.

    (2) The Applicant will meet the following eligibility requirements to be eligible to participate in AgriStability:
    1. The Applicant has, with respect to a Program Year, met the following:
      1. The Applicant has:
        1. Reported Farm Income for the purposes of the Income Tax Act (Canada), or
        2. Where the Applicant is exempt from taxation, submitted a statement of farming income and expenses as would otherwise be reportable under the Income Tax Act (Canada),
      2. The Applicant has completed a minimum of six (6) consecutive months of farming activity, and
      3. The Applicant has completed one production cycle;
    2. The Applicant has, with respect to each Program Year, met each of the following requirements:
      1. Provided such information required to determine the Applicant's Production Margin and Reference Margin for that Program Year by the deadlines set out in the Guidelines, and
      2. Made the Participant's Contribution for that Program Year by the deadline set out in the Guidelines;

    (3) Despite section 37(2)(b)(ii) of this Order, a Person may be able to apply to and participate in AgriStability after the applicable deadline for enrollment in AgriStability has lapsed where:

    1. The Person has not applied to participate in AgriStability for that Program Year; and
    2. The Minister has obtained Canada's approval to allow Persons to apply late to AgriStability in times of need;

      provided:
      1. The Person follows the process set out in the Guidelines relating to late enrollment under AgriStability; and
      2. A twenty percent (20%) reduction on any Payment the Person is eligible to receive under AgriStability in imposed.

    (4) Despite section 37(2)(b)(ii) of this Order, an Applicant may be allowed to participate in AgriStability where the Applicant applied to participate in AgriStability but did not fully pay the Participant's Contribution for the Program Year by the deadline set out in the Guidelines where;

    1. The Minister has obtained Canada’s approval to allow Persons to apply late to AgriStability in times of need; provided:
      1. The Applicant pays the outstanding balance owing on the Applicant’s Participant’s Contribution by the due date; and
      2. A twenty percent (20%) reduction on any Payment the Applicant is eligible to receive under AgriStability is imposed.

    (5) Despite section 37(2) of this Order, an Applicant will be deemed to meet those requirements for a Program Year, if the reason for not being able to meet those requirements for a Program Year are due to circumstances beyond that Applicant’s control and the Applicant meets the requirements set out in the Guidelines.

    (6) Publicly funded institutions, as set out in the Guidelines, are not eligible to participate under AgriStability.

    (7) An estate of a deceased Participant may participate in AgriStability, provided the estate meets the requirements set out in the Guidelines.

    (8) Subject to section 43 of this Order, partners within a partnership will participate individually in AgriStability and follow any requirements set out in the Guidelines.

    (9) A Person does not have to participate in AgriInvest to participate in AgriStability.

  1. A Person may participate in both AgriStability and AgriInvest, provided that Person meets the requirements set out for each Component under this Order and each Component's respective guidelines.
  2. (1) A Participant's Contribution will only be calculated once the Participant has submitted all of the information required under section 37(2)(b)(i) of this Order. The Participant will be notified of the Participant's Contribution, and the basis upon which that determination was made, within a reasonable time after the calculation has been made.

    (2) Each Participant will pay the Minimum Participation Contribution each Program Year.

    (3) The manner in which the Participant's Contribution is set will be set out in the Guidelines.

    (4) A Participant Contribution's will be credited to the Participant's Fund 1.

    (5) If the Guidelines allow Participants to submit a statement of farming income and expenses, the statement will detail all income and expense information otherwise reportable for farm business income tax purposes and necessary for the calculation of any Program Payments for a Program Year. Participants who file information in this manner will also retain all source documents that would be required under the Income Tax Act (Canada).

    (6) Participant Contributions deposited into Fund 1 with respect to the 2006 Program Year and later shall not be withdrawn except as provided for in section 50 or section 54 of this Order.
  1. (1) Applicants will share in the administrative costs of AgriStability. Each Applicant will pay the amount set out in the Guidelines each Program Year by the deadline set out in the Guidelines.

    (2) The Guidelines may establish the process by which Applicants are required to pay the minimum payment required by section 39(2) of this Order.

Accounts

  1. (1) A separate Account for each Participant will be established.

    (2) When a Participant's Account is established, the following will apply:

    1. The Participant's CRA BN will be used, where possible; and
    2. If a Participant does not qualify for a CRA BN, that Participant's SIN will be used.

    (3) A Participant may be required to provide the name and CRA BN or the SIN of all other persons related to the Participant within the meaning of the Income Tax Act (Canada).

    (4) A Participant's Account will consist of Fund 1 and Fund 2.

    (5) A separate account will be established for both AgriStability and AgriInvest, should a Participant under AgriStability also be participating in AgriInvest.

    (6) Adjustments may be made to a Participant's Account, provided such adjustments are made in accordance with this Order and the Guidelines.

Calculating Production Margin

  1. (1) A Participant will report allowable income and expenses at their fair market value. Where it is determined a Participant has not reported allowable income and/or expenses at fair market value, adjustments to the allowable income and/or expenses may be made to reflect the fair market value of the allowable income and/or expenses.

    (2) Any adjustments that are made to the financial information a Participant reports with respect to such matters as purchased inputs, commodity inventories, accounts payable and receivable and deferred income when calculating a Participant's Production Margin will be made in accordance with the Guidelines.

    (3) Any calculation of a Participant's Production Margin will include an amount in respect of AgriInsurance, whether or not the Participant actually participated in AgriInsurance. The methodology set out in the Guidelines will be followed when calculating this amount.

Calculating Participant's Reference Margin

  1. A Participant's Reference Margin with respect to a Program Year will be calculated in the following manner:
    1. A three (3) year average of a Participant's Production Margin, based on the five (5) year period preceding the Program Year, excluding the years with the highest and the lowest Production Margins.
    2. If it is not possible to determine a Participant's Production Margin for one or more of the preceding five (5) years, the average of the Participant's Production Margin in the preceding three (3) years. If it is not possible to determine the Participant's Production Margin for one or more of those three (3) years, the missing Production Margin will be determined on the basis of like farms.
  2. (1) A Participant's Reference Margin calculated under section 43 of this Order will be reduced based on the Participant's expenses, as set out in the Guidelines.

    (2) A reduction to a Participant's Reference Margin pursuant to section 44(1) of this Order will not be made above thirty percent (30%).
  3. (1) Multiple Participants and farming operations may be combined for determining any benefits under AgriStability, provided such combining is in accordance with the criteria set out in the Guidelines.

    (2) A combined Production Margin and Reference Margin for Participants and farming operations combined under section 45(1) of this Order will be calculated. This calculation will be based on what is set out in the Guidelines.

    (3) No Program Payment to Participants who have been combined under section 45(1) of this Order will be made in excess of the Maximum Government Contribution.
  4. Adjustments to the Production Margin and Reference Margin may be made in accordance with the Guidelines where a Participant's farming operation has undergone a change in ownership, business structure, size, farming practices, type of farming activity, method of account or any other changes that affects the farming operation's potential for profit. Despite the forgoing, adjustments may be waived if, according to the Guidelines, the changes were a result of circumstances beyond the Participant's control.
  5. Adjustments with respect of the Production Margin and Reference Margin may be made where a farming operation is transferred, in whole or in part, to another Person. These adjustments will be made in accordance with the Guidelines.

Program Payments Under AgriStability

  1. Calculations to determine whether a Participant is eligible to receive a Program Payment under AgriStability will only be made once a Participant has submitted all of the information required under section 37(2)(b)(i) of this Order with respect to a Program Year. Participants will be notified as to whether the Participant is eligible to receive a Program Payment under AgriStability, and the basis upon which that determination was made, within a reasonable time after the calculation has been made.
  2. An Interim Payment to a Participant may be made prior to the calculation set out under section 48 of this Order, provided the Interim Payment is made in accordance with the Guidelines.
  3. (1) Program Payments will be calculated in the following manner where a Participant experiences a Margin Decline in a Program Year with a Margin Decline Ratio greater than thirty percent (30%):
    1. Seventy percent (70%) of the portion of the Margin Decline which represents a Margin Decline Ratio less than or equal to one hundred percent (100%) but greater than thirty percent (30%); and
    2. Where a Participant's Production Margin for a Program Year is less than zero (negative margin), seventy percent (70%) of the lesser of: (a) the absolute value of the Production Margin; and (b) the Margin Decline.

    A Participant will be eligible for a Program Payment with respect to negative margins in a Program Year if the Participant has: (a) incurred a negative margin resulting from the perils as set out in the Guidelines; (b) followed sound managerial practices, as defined in the Guidelines; and (c) had a Reference Margin greater than zero (0), or had a Production Margin greater than zero (0) in two (2) of three (3) Program Years used to calculate the Reference Margin, including Program Years for which the Production Margin was estimated under section 42 of this Order, but excluding Program Years excluded under section 43 of this Order.

  4. Despite the amount of the eligible Program Payment calculated under section 48 of this Order, the total Program Payment issued pursuant to this Order will be:
    1. Less than seventy percent (70%) of the Participant's Margin Decline; and
    2. Less than or equal to the Maximum Government Contribution for that Participant.
  5. Any Program Payment to a Participant will be first from the Participant's Fund 1. Any remaining Program Payment will be made from the Participant's Fund 2.
  6. No Program Payments will be made to a Participant that is less than the Minimum Government Contribution for a Program Year.
  7. No Program Payments will be made to a Participant that is larger than the Maximum Government Contribution for a Program Year.
  8. No interest will be paid on any balances in Fund 1 or Fund 2.

Mandatory Withdrawals

  1. A Participant may be required to make a withdrawal from an Account where that Participant becomes ineligible for participation in AgriStability or the Participant ceases operations.

Opting Out Of AgriStability

  1. (1) A Participant may choose to opt out of AgriStability.

    (2) Where a Participant opts out of AgriStability, the following will apply:
    1. Any funds remaining in that Participant's Fund 1 from the 2006 Program Year and onwards will be forfeited and any forfeited funds will be deposited into Ontario's Consolidated Revenue Fund; and
    2. The Participant's Account will be closed.

Internal Reviews and Requests for Review

  1. (1) An internal review process that allows a Person or Participant to ask for a decision made pursuant to this Part VIII of the Order to be reviewed will be established.

    (2) Where an internal review process is established pursuant to section 58(1) of this Order, the following will be done:
    1. A guidance document setting out how the internal review process works will be established;
    2. Timelines in which a decision under the internal review process will be issued will be set out; and
    3. Applicants or Participants will be informed that that Applicant or Participant does not have to request an internal review of the original decision that was made and can make a request for review to the BRMRC.
  2. (1) Where a Person is not satisfied with a decision made in relation to an internal review process, that Person may request that the BRMRC review that decision.

    (2) Where a Person requests the BRMRC to conduct a review pursuant to section 59(1) of this Order, the process set out under Order-in-Council 1310/2011, as may be amended will be followed for that review.

National Program Advisory Committee

  1. The Program Operator will appoint one official from the Ministry and one producer from Ontario to sit on the National Program Advisory Committee, which is established to provide advice with respect to the administration of both AgriStability and AgriInvest.
  2. The term of the appointment of the producer will be for three (3) years or less.
  3. The producer appointed pursuant to section 60 of this Order will be directly or indirectly participating, or agree to participate in, AgriStability and AgriInvest.

Funding for AgriStability

  1. (1) Any Program Payment that is made under AgriStability for a Participant's Fund 2 will not exceed forty percent (40%) of the total payment the Participant is eligible to receive under AgriStability.

    (2) Any Administrator Payment made to an Administrator will not exceed forty percent (40%) of the total costs of those expenses.

    (3) Despite sections 63(1) and 63(2) of this Order, up to one hundred percent (100%) of the total Program Payment a Participant is eligible to receive as well as up to one hundred percent (100%) of an Administrator Payment made to an Administrator may be made in relation to aquaculture under AgriStability.

Part IX – AgriInvest

  1. AgriInvest, as continued under Part VIII of the OIC is continued under this Order, subject to the requirements set out in this Part IX of the Order.

Interpretation

Definitions
  1. For this purposes of this Part IX of the Order, the terms below shall have the following meanings:

    "Account" means the account established under section 69 of this Order;

    "Allowable Net Sales" means a Participant's allowable net sales, as calculated under section 71 of this Order;

    "Deposit Notice" means a notice that is sent to a Participant that sets out the Participant's Allowable Net Sales, Maximum Government Deposit, Maximum Participant Deposit, deposit deadline and the Maximum Account Balance;

    "Eligible Agricultural Commodities" means those commodities set out in the Guidelines;

    "Farm Revenue" means farm income as reported for income tax purposes under the Income Tax Act (Canada), or for Participants exempt from taxation, as would be reportable for income tax purposes, subject to any limitations set out in the AgriInvest Guidelines, and includes AgriInsurance Program Payments but excludes other Component Program Payments under the Program; and, for the Production Margin calculation in the Program Year only, includes payments made under legislation administered and enforced by the Canadian Food Inspection Agency (or successor entity) that are reportable as farm income for income tax purposes under the Income Tax Act (Canada) and other income support programs agreed to in a bilateral agreement between Canada and Ontario under the CAPA;

    "Fund 1" means the fund to which all amounts a Participant pays under AgriInvest will be credited;

    "Fund 2" means the fund to which all amounts paid by Canada or Ontario in respect of a Participant under AgriInvest will be credited;

    "Guidelines" means the written document setting out the requirements, terms and conditions government the operation of AgriInvest that are in addition to what is set out under this Part IX of the Order;

    "Maximum Account Balance" means the amount determined under section 76 of this Order;

    "Maximum Government Contribution" means ten thousand dollars ($10,000.00), which is the maximum contribution for both Canada and Ontario under AgriInvest in a Program Year, or such other lesser amount specified in the Guidelines;

    "Minimum Government Contribution" means two-hundred and fifty ($250.00), which is the minimum contribution from both Canada and Ontario under AgriInvest in a Program Year, or such other amount specified in the Guidelines;

    "Participant's Maximum Account Balance" means with respect to a Program year an amount that is equal to four hundred percent (400%) of the Participant's average Allowable Net Sales, based on the Program Year and the two preceding Program Years, excluding any Program Year for which the Participant's Allowable Net Sales was not calculated;

    "Program Year" means the period for which the Participant files a return under the Income Tax Act (Canada), or such other period as is permitted by the Guidelines; and

    "Supply Managed Commodities" means those commodities coming within the provisions of the Canadian Dairy Commission Act (Canada) or for which national marketing agencies have been established under Part II of the Farm Products Agencies Act (Canada).

Purpose

  1. The purpose of AgriInvest is to provide Participants with flexible coverage for small income declines as well as support for investments to mitigate risks or improve market income. AgriInvest provides matching deposits to Participants from Canada and Ontario up to a certain amount.

Program Operation

Eligibility Requirements
  1. (1) No Applicant will be eligible to participate in AgriInvest unless that Applicant meets all of the requirements set out in section 14(2) of this Order as well as in this Part IX of the Order.

    (2) The Applicant will meet the following additional eligibility requirements to be eligible to participate in AgriInvest:

    1. The Applicant has, with respect to a Program Year, met the following:
      1. Reported Farm Income for the purposes of the Income Tax Act (Canada), or
      2. Where the Applicant is exempt from taxation, submitted a statement of farming income and expenses as would otherwise be reportable under the Income Tax Act (Canada);
    2. The Applicant has, with respect to each Program Year, and by no later than the deadlines specified in the Guidelines, met each of the following requirements:
      1. Confirmed participation in AgriInvest for that Program Year by the appropriate deadline set out in the Guidelines, and
      2. Provided such information as is required to determine the Applicant's Allowable Net Sales for that Program Year by the appropriate deadline set out in the Guidelines.

    (3) Publicly funded institutions, as set out in the Guidelines, are not be eligible to participate under AgriInvest.

    (4) An estate of a deceased Participant may participate in AgriInvest, provided the estate meets the requirements set out in the Guidelines.

    (5) Subject to section 71(6) of this Order, partners within a partnership will participate individually in AgriInvest and follow any requirements set out in the Guidelines.

    (6) A Person does not have to participate in AgriStability to participate in AgriInvest.

  2. A Person may participate in both AgriInvest and AgriStability, provided that Person meets the requirements set out for each Component under this Order and each Component's respective guidelines.

Accounts

  1. (1) A separate Account will be established for each Participant.

    (2) Where a Participant's Account is established, the following will apply:

    1. The Participant's CRA BN will be used, where possible; and
    2. If the Participant does not qualify for a CRA BN, that Participant's SIN will be used.

    (3) A Participant may be required to provide the name and CRA BN or the SIN of all other persons related to the Participant within the meaning of the Income Tax Act (Canada).

    (4) A Participant's Account will consist of Fund 1 and Fund 2.

    (5) A separate account will be established for both AgriInvest and AgriStability, should a Participant under AgriInvest also be participating in AgriStability.

    (6) Adjustments may be made to a Participant's Account, provided such adjustments are made in accordance with this Order and the Guidelines.

Fair Market Value Reporting

  1. A Participant will report allowable income and expenses at their fair market value. Where it is determined that a Participant has not reported allowable income and/or expenses at fair market value, adjustments to the allowable income and/or expenses to reflect the fair market value of the allowable income and/or expenses.

Calculating Allowable Net Sales

  1. (1) A Participant's Allowable Net Sales will be calculated from the revenue of the Eligible Agricultural Commodities, including AgriInsurance Program Payments in respect of those Eligible Agricultural Commodities and other payments set out in the Guidelines, less the purchases of the Eligible Agricultural Commodities.

    (2) The Guidelines will set out all Eligible Agricultural Commodities as well as the procedures for adjusting revenue from purchases of those Eligible Agricultural Commodities.

    (3) Supply Managed Commodities will not be considered as Eligible Agricultural Commodities. Where a Participant has revenue from the purchase of Supply Managed Commodities, the Participant's Annual Net Sales will be adjusted by adding the revenue and subtracting the purchases of the Supply Managed Commodities and then multiplying the ratio of:
    1. The revenue from each Eligible Agricultural Commodity; and
    2. The revenue from each Eligible Agricultural Commodity plus the revenue from the Supply Managed Commodities.

    (4) Where a Participant's Annual Net Sales for a Program Year is less than zero (0), that Participant's Annual Net Sales will be deemed to be zero (0) for that Program Year.

    (5) A Participant's allowable Annual Net Sales for a Program year will be limited to a maximum of one million dollars ($1,000,000.00).

    (6) The combined Annual Net Sales and Maximum Account Balance of multiple Participants may be limited, provided such limitation is in accordance with the Guidelines.

Calculating Program Payment

  1. (1) A Program Payment for a Program Year will on be made once a Participant has submitted all of the information required under section 67(2)(b)(i) of this Order by the deadlines set out in the Guidelines. The Participant will be notified of the Program Payment for the Program Year and the basis upon which that determination was made through a Deposit Notice, within a reasonable time after the calculation has been made.

    (2) Despite anything else contained in this Part IX of the Order, the Program Payment will be calculated by multiplying the Participant's Allowable Net Sales for a Program Year by one percent (1%) unless the Guidelines provide otherwise.

Participant's Deposit

  1. (1) A Participant may make a deposit into Fund 1 of the Participant's Account after receiving notification of the Maximum Government Deposit.

    (2) A Participant will only deposit up to one hundred percent (100%) of the Participant's Allowable Net Sales into Fund 1 of the Participant's Account.

    (3) The Guidelines may establish a limit on the number of deposits a Participant may make to Fund 1 of the Participant's Account within a Program Year.

Making A Program Payment

  1. (1) A Program Payment equal to the Participant's deposit may be deposited into the Participant's Fund 2 Account after the Participant has made a deposit pursuant to section 73 of this Order into the Participant's Fund 1.

    (2) Despite section 74(1) of this Order, no Program Payment will be deposited into a Participant's Fund 2 Account if:
    1. Such Program Payment is less than the Minimum Government Contribution for a Program Year; or
    2. Such Program Payment is more than the Maximum Government Contribution.

Withdrawals

  1. (1) A Participant may withdraw funds from the Participant's Account in accordance with the Guidelines.

    (2) Where a Participant makes a withdrawal, the following will apply:
    1. The withdrawal will come from the Participant's Fund 2 until the Participant's Fund 2 balance is zero (0); and
    2. Any remaining withdrawal will come from the Participant's Fund 1.

    (3) Any limits on the frequency of withdrawals or the establishment of minimum withdrawal amounts will be set out in the Guidelines.

    (4) Fees may be imposed where a Participant makes frequent withdrawals from the Participant's Account, provided those fees are set out in the Guidelines.

Maximum Account Balances

  1. (1) A Participant's Account balance will not exceed the Participant's Maximum Account Balance.

    (2) Partial Program Payments may be made to a Participant where a full Program Payment to the Participant would result in the Participant exceeding the Participant's Maximum Account Balance, provided such Program Payment does not result in the Participant exceeding the Participant's Maximum Account Balance.

    (3) The Allowable Net Sales and the Maximum Account Balance for multiple Participants may be combined, provided such combination is in accordance with the Guidelines.

Mandatory Withdrawals

  1. (1) A Participant may be required to make a withdrawal from an Account where the Participant's Maximum Account Balance has been exceeded, the Participant becomes ineligible to participate in AgriInvest or the Participant ceases operations.

    (2) Participants will be required to withdraw the entire balance from the Participant's Account where the Participant has failed to report the information required to calculate the Participant's Annual Net Sales or has reported no sales or purchases of Eligible Agricultural Commodities for two (2) consecutive Program Years.

Opting Out of AgriInvest or Being De-Enrolled in AgriInvest

  1. (1) A Participant may choose to opt out of AgriInvest.

    (2) A Participant may be de-enrolled in AgriInvest where:
    1. The Participant has not deposited funds into the Account after receiving notice;
    2. The Participant has not reported purchases for two (2) years under AgriInvest; or
    3. The Participant has a balance higher than what is allowed under the Guidelines.

    (3) Where a Participant opts out of AgriInvest or the Participant is de-enrolled from AgriInvest, Any balance in the Participant's Account will be paid to the Participant. The Participant will also be informed that the Participant must close the Account.

Internal Reviews and Requests for Review

  1. (1) The Program Administrator may establish or cause to be established an internal review process that allows a Person or Participant to ask for a decision made pursuant to this Part IX of the Order to be reviewed.

    (2) Where an internal review process is established pursuant to section 79(1) of this Order, the following will be done:
    1. A guidance document setting out how the internal review process works will be established;
    2. Timelines in which a decision under the internal review process will be issued will be set out; and
    3. Applicants or Participants will be informed that that Applicant or Participant does not have to request an internal review of the original decision that was made in order to have the decision reviewed externally in accordance with section 80 of this Order.
  1. (1) The Program Administrator may establish or cause to be established a body to conduct an external review process that allows a Person or Participant to ask for a decision made pursuant to this Part IX of the Order to be reviewed.

    (2) Where the Program Administrator establishes or causes to be established a body to conduct an external review process pursuant to section 80(1) of this Order, the Program Administrator will establish or cause to be established:
    1. A guidance document setting out how the body conducting an external review process works; and
    2. Timelines in which a decision by the body conducting an external review process will be issued.

    (3) Where a body to conduct an external review process has been established pursuant to section 80(1) of this Order, that body will only have the authority to make non-binding recommendations in relation to its review.

    (4) Where the body responsible for conducting an external review process makes a non-binding recommendation the decision-maker responsible for making the final decision under AgriInvest will consider that non-binding recommendation before making a final decision on the matter.

Funding for AgriInvest

  1. (1) Any Program Payment that is made under AgriInvest for a Participant's Fund 2 will not exceed forty percent (40%) of the payment the Participant is eligible to receive under AgriInvest.

    (2) Any Administrator Payment made to an Administrator will not exceed forty percent (40%) of the total costs of those expenses.

Part X – AgriInsurance

AgriInsurance, as continued under Part IX of the OIC is continued under this Order, subject to the requirements set out in this Part X of the Order.

Interpretation

Definitions
  1. For the purposes of this Part X of the Order, the terms below shall have the following meanings:

    "Actuary" means a Fellow of the Canadian Institute of Actuaries or successor entity;

    "Administrative Fee" means the fees charged to each Insured Producer on the basis of acreage insured, other than late filing fees and interest charges on overdue accounts, which are used to offset administrative expenses that would otherwise be payable by Canada or Ontario;

    "Agricultural Product" means:

    1. An animal, a plant or an animal or plant product, or
    2. A product, including any food or drink that is wholly or partly derived from an animal or plant;

    "Agricultural Products Insurance Fund" means the fund continued under the Agricultural Products Insurance Act (Ontario), 1996 and includes any successor fund;

    "Base Insurance Plan" means an Insurance Plan for Comprehensive Production Loss Coverage or Catastrophic Production Loss Coverage that covers losses for the total production of the farm enterprise for each separate Agricultural Product;

    "Catastrophic Production Loss Coverage" means benefits that are calculated in accordance with section 91 of this Order;

    "Comprehensive Production Loss Coverage" means all coverage other than Catastrophic Production Loss Coverage, High-Cost Production Loss Coverage and Wildlife Compensation;

    "Contract Of Insurance" means a policy of insurance issued under an Insurance Program that covers all areas where an Agricultural Product is produced by one Insured Producer or more than one Insured Producer who have a common interest in that Agricultural Product;

    "Contribution" means the amount to be paid by Canada and Ontario;

    "Coverage Level" means the percentage of Production Value of an Agricultural Product that is insured;

    "High-Cost Production Loss Coverage" means benefits that are calculated in accordance with section 92 of this Order;

    "High-Risk Agricultural Product" means a commodity insured above eighty percent (80%), where the "nine percent (9%) rule", as set out in section 95 of this Order is exceeded;

    "Insurance Plan" means a set of insurance features for an Agricultural Product, as provided under the Agricultural Products Insurance Act (Ontario), 1996;

    "Insured Producer" means a holder of a Contract Of Insurance that has an insurable interest in one or more Agricultural Products covered by the Contract Of Insurance;

    "Livestock Directives" means the document that provides the conditions for eligibility and any other interpretation or clarification required for the proper establishment of livestock production Insurance Plans;

    "National Certification Guidelines" means the guidelines Canada has developed in consultation with Ontario and other signatories of the CAPA that describe the work and the documentation needed to prepare the actuarial certificates;

    "New Agricultural Product" means an Agricultural Product for which protection is being offered under a Yield-Based Insurance Plan at a Coverage Level that does not exceed seventy percent (70%) of the Production Value of that Agricultural Product and for which insufficient data exists to meet the National Certification Guidelines or means an Agricultural Product for which protection is being offered under a Non-Yield-Based Insurance Plan at a Coverage Level that has a demonstrable deductible of at least ten percent (10%) of the Production Value of that Agricultural Product and for which insufficient data exists to meet the National Certification Guidelines;

    "Non-Yield-Based Coverage" means insurance coverage that is not based on the probable yield of an Agricultural Product;

    "Non-Yield Production Value" means the dollar value per standard unit of production for Insurance Programs not based on yield;

    "Operational Document" means the guideline that sets out the requirements, terms and conditions governing the operation of AgriInsurance that are in addition to what is set out under this Part X of the Order;

    "Premium" means the amount of money assessed in any year to insure an Agricultural Product under a Contract Of Insurance;

    "Producer-Paid Production Loss Coverage" means the coverage set out under section 93 of this Order;

    "Production Guarantee" means the amount of insurance protection provided under a Contract Of Insurance based on the probable yield of that Agricultural Product, the exposure units insured and the Coverage Level established under a Contract Of Insurance;

    "Production Insurance" means agricultural products insurance under the Agricultural Products Insurance Act (Ontario), 1996;

    "Production Value" means the level of production multiplied by the Yield Production Value or the Non-Yield Production Value of an Agricultural Product, whichever is applicable;

    "Production Year" means the period set out in the Operational Document for each Agricultural Product;

    "Risk-Splitting Benefit" means any Insurance Plan that triggers an indemnity payment without regard to the total production of the farm enterprise for a separately insurable Agricultural Product, that has Premium rates identified separately from other Premiums in an Insurance Plan and is in accordance with the regulations under the Farm Income Protection Act (Canada). A Risk-Splitting Benefit may be an independently-operated Insurance Plan or an option to a Base Insurance Plan;

    "Wildlife Compensation Program" means the program referred to in section 103 of this Order under which compensation is paid for predation and damage caused by wildlife where such damages are not included as part of any Insurance Plan;

    "Yield-Based Coverage" means insurance coverage that is based on the probable yield of an Agricultural Product; and

    "Yield Production Value" means probable yield multiplied by unit price for yield-based Insurance Plans.

Purpose

  1. The purpose of AgriInsurance is:
    1. To provide Insured Producers with insurance against production losses for specified perils that are beyond the direct control of the Insured Producer and is therefore meant to be the first line of defence against production loss; and
    2. To indemnify eligible Persons when they incur damages caused by Wildlife that are not included as part of any Insurance Plan;

Program Operation

Eligibility
  1. (1) No Person will be eligible to participate in an Insurance Plan under AgriInsurance unless that Person meets all of the requirements set out in this Order, the Operational Document and the Agricultural Products Insurance Act (Ontario), 1996.

    (2) At a minimum, the Person will meet the following general eligibility requirements in order to be eligible to participate in an Insurance Plan under AgriInsurance:
    1. The Person agrees to be bound by the requirements, terms and conditions of the Insurance Plan under AgriInsurance, as set out in this Order, the Operational Document and the Agricultural Products Insurance Act (Ontario), 1996;

Eligible Products

  1. Each Agricultural Product set out in the Operational Document for which there is an Insurance Plan agreed to by the Minister and Canada is eligible for coverage under AgriInsurance.
  2. The Operational Document will provide for the introduction of Insurance Plans for a new Agricultural Product or changes to an existing Insurance Plan.
  3. The areas to which each Insurance Plan extends will be set out in the Operational Document.

Insurance Deadlines

  1. The enrollment and seeding deadlines for each Insurance Plan under AgriInsurance will be set out in the Operational Document.

Probable Yield Determination

  1. (1) The manner of determining probable yields will be set out in the Operational Document.

    (2) Each probable yield set out in the Operational Document will be certified by an Actuary before being included in the Operational Document. The Actuary's certification will set out that the methodologies used to determine the probable yield result in probable yields that accurately reflect an Agricultural Product's demonstrated capability.

Coverage

  1. (1) Coverage Levels for an Insurance Plan will be set out in the Operational Document.

    (2) The method used to establish Coverage Levels above eighty percent (80%) and up to ninety percent (90%) will be set out in the Operational Document. A statistical assessment of risk related to the total pure Premium cost to determine the maximum Coverage Level available for an Agricultural Product will be used.

    (3) Where probable yield to form the basis for determining coverage is not used, Non-Yield-Based Coverage may be provided to Insured Producers for losses, including losses to:
    1. Stands of fruit trees or other perennial plants;
    2. Livestock; and
    3. Production being prevented or reduced by weather or another agricultural peril.

    (4) Details related to the provision of benefits for Non-Yield-Based Coverage permitted under section 90(3) of this Order, including the establishment of the amount of protection, the determination of indemnities and the determination of the long-term average loss percentage, will be set out in the Operational Document.

Catastrophic Production Loss Coverage

  1. (1) The purpose of Catastrophic Production Loss Coverage is to measurably increase the amount of insurance protection for loss situations that, based on an actuarial assessment, are determined to be a ninety-three (93) percentile loss or greater.

    (2) Catastrophic Production Loss Coverage may be offered under AgriInsurance.

    (3) Details for the Catastrophic Production Loss Coverage will be set out in the Operational Document.

High-Cost Production Loss Coverage

  1. (1) The purpose of High-Cost Production Loss Coverage is to provide greater flexibility in Insurance Plans as a means of attracting participation in the Insurance Program.

    (2) High-Cost Production Loss Coverage may be offered under AgriInsurance. High-Cost Production Loss Coverage includes:
    1. Risk-Splitting Benefits, other than those identified in section 94 of this Order;
    2. Coverage Levels above eighty percent (80%) for High-Risk Agricultural Products; and
    3. Insurance Plans with Yield Production Values for Yield-Based Coverage or Non-Yield Production Values for Non-Yield-Based Coverage that exceed the actual or replacement value of an Agricultural Product.

    (3) The details for the High-Cost Production Loss Coverage will be set out in the Operational Document.

Producer-Paid Production Loss Coverage

  1. (1) The purpose of Producer-Paid Production Loss Coverage is to provide flexibility to allow Agricultural Products to be insured under an Insurance Plan above the Comprehensive Production Loss Coverage or the High-Cost Production Loss Coverage Insurance Plans being offered under this Order.

    (2) Producer-Paid Production Loss Coverage may be offered under AgriInsurance, provided:
    1. Canada has approved the offering of Producer-Paid Production Loss Coverage;
    2. Producer-Paid Production Loss Coverage:
      1. Is only offered as additional coverage that can be purchased under an Insurance Plan,
      2. Does not already exist as an insurance feature under the Insurance Plan,
      3. Does not apply to any New Agricultural Product Insurance Plan,
      4. Is not eligible for funding under Catastrophic Production Loss Coverage, and
      5. Does not exceed one percent (1%) of the aggregate value of all Premiums for the previous production year total liability for Comprehensive Production Loss Coverage and High-Cost Production Loss Coverage.

    (3) Despite section 93(2)(v) of this Order, should the aggregate value of Producer-Paid Production Loss Coverage exceed one percent (1%) of the aggregate value of all Premiums, the excess value of those Premiums will be covered as High-Cost Production Loss Coverage in accordance with section 92 of this Order as opposed to being Producer-Paid Production Loss Coverage.

    (4) The process in which a Person may enter into a Producer-Paid Production Loss Coverage will be set out in the Operational Document.

Risk-Splitting Benefits

  1. (1) Risk-Splitting Benefits include coverage for Agricultural Products that do not satisfy all of the following criteria:
    1. Can be distinguished from other like Agricultural Products;
    2. Have a separate market price from other like Agricultural Products;
    3. Have different productive capabilities or production risks from other like Agricultural Products; and
    4. Have sufficient volume of production and availability of data to ensure the financial viability of an Insurance Plan related to that Agricultural Product.

    (2) A Risk-Splitting Benefit that meets one of the following criteria will be eligible for funding under the Comprehensive Production Coverage or the Catastrophic Production Loss Coverage:

    1. The Risk-Splitting Benefit relates to a production contract with a third party and the loss payable is the direct result of third party actions;
    2. It can be demonstrated by statistical analysis that operating the Risk-Splitting Benefit results in indemnity payments that are less than would be otherwise be paid under the Insurance Plan; or
    3. The total costs of the Risk-Splitting Benefit are less than the total costs for the same perils at the same Coverage Level under an Insurance Plan that does not provide Risk-Splitting Benefits (where the same Coverage Level means the same amount of liability for each exposure unit).

    (3) Risk-Splitting Benefits that operate independently of a Base Insurance Plan will be considered High-Cost Production Loss Coverage.

    (4) Where all of the following conditions are met, the Risk-Splitting Benefit will be eligible for funding under the High-Cost Production Loss Coverage and the Base Insurance Plan shall be eligible for funding under the Comprehensive Production Loss Coverage or Catastrophic Loss Production Coverage (as the case may be):

    1. The Risk-Splitting Benefit is sold as an option to the Base Insurance Plan;
    2. Where the Risk-Splitting Benefit is an option, the maximum Coverage Level for the Base Insurance Plan is eighty percent (80%) of the probable yield for Yield-Based Coverage or eighty percent (80%) of the Production Value for Non-Yield-Based Coverage;
    3. Where the Risk-Splitting Benefit is an option, the minimum Coverage Level for the Base Insurance Plan is seventy percent (70%) of the probably yield for Yield-Based Coverage or seventy percent (70%) of the Production Value for Non-Yield-Based Coverage; and
    4. There shall be no moral hazard associated with the Risk-Splitting Benefit or additional administrative costs required to control the moral hazard.

    (5) For the purposes of section 94(4)(d) of this Order, a moral hazard will be considered to be adequately controlled where:

    1. There is third-party involvement which prevents the mixing of crops;
    2. There are separate market channels that insure all subdivisions of crops are stored, priced and marketed separately;
    3. The Risk-Splitting Benefit is designed such that indemnity payments are independent of producer actions; or
    4. The Risk-Splitting Benefit relates to losses where the Agricultural Product must be destroyed prior to harvest.

    (6) Where the conditions identified in section 94(5) of this Order have not been met, both the Risk-Splitting Benefit and the Base Insurance Plan will be considered to be High-Cost Production Loss Coverage.

Coverage Levels Above Eighty Percent

  1. A High-Risk Agricultural Product is a commodity insured above the eighty percent (80%) Coverage Level, where the total pure Premium cost is greater than nine percent (9%) of the total Production Value. The only exception to this rule will be where a whole-farm or basket-of-crops option provides coverage above eighty percent (80%) and the total Premium cost for this option is no greater than the total Premium costs of eighty percent (80%) coverage for the individual Agricultural Product included in the whole-farm or basket-of-crops. For greater certainty, additional Premium cost greater than nine percent (9%) associated with the coverage about the eighty percent (80%) for High-Risk Agricultural Products shall be limited to the amount allocated for High-Cost Production Loss Coverage.

Determining Yield Production Values or Non-Yield Production Values

  1. The process for determining Yield Production Values or Non-Yield Production Value will be set out in the Operational Document. This process will be in accordance with the National Certification Guidelines.

Loss Determination

Eligible Perils
  1. All eligible perils under an Insurance Plan will be set out in the Operational Document.
Determination of Losses
  1. (1) The determination of losses for each Agricultural Product will be based on the total production of the Agricultural Product, adjusted for quality losses where protection is provided, on all exposure units identified in the Contract Of Insurance, compared to the total Production Guarantee for that Agricultural Product for the corresponding exposure units.

    (2) Where losses are not determined as specified in section 98(1) of this Order, the procedure for determining such losses shall be set out in the Operational Document.

    (3) For the purposes of loss determination, where quality protection is provided, an adjustment will be made to the total Production Value, or unit value to reflect a quality loss. The method used to make this adjustment shall be set out in the Operational Document.

    (4) Only one indemnification payment of compensation for the same loss will be made where losses are eligible for payments under more than one Insurance Plan.

Premium Rate Determination

  1. Premium rates will, except as in the case of a New Agricultural Product, be determined in accordance with the National Certification Guidelines and will be set out in the Operational Document. The Operational Document will also set out a description of each Premium rate methodology and how it is applied in determining Premiums.
  2. The methodology for calculating Canada and Ontario's Contribution toward the Premiums will be set out in the Operational Document.
  3. An Insured Producer will pay his/her/its/their share of the Premiums for an Insurance Plan. This includes any incremental cost the Insured Producer must pay above the Contribution that is made toward the Premium for Producer-Paid Production Loss Coverage.

 New Agricultural Products Review

  1. A review of each Insurance Plan for a New Agricultural Product will be conducted no later than five (5) years after it is first implemented.

Wildlife Compensation

  1. The Wildlife Compensation component of AgriInsurance is provided under OIC 502/2016. A Person wishing to receive compensation for damages caused by wildlife will follow the requirements, terms and conditions set out under OIC 502/2016.

Livestock Insurance Plans

  1. An Insurance Plan that covers all or a part of the livestock sector may be established, provided the following requirements have been met:
    1. The necessary approvals and authorities to create and implement the Insurance Plan for the livestock sector have been obtained;
    2. The Insurance Plan for the livestock sector adheres to the Livestock Directives; and
    3. The details of the Insurance Plan for the livestock sector are set out in the Operational Document.

Agricultural Products Insurance Fund

  1. (1) The Agricultural Products Insurance Fund will be used for all Insurance Plans under AgriInsurance. The following will be deposited into or retained in, as the case be, the Agricultural Products Insurance Fund:
    1. Premiums, which includes the Contribution by Canada and Ontario;
    2. Interest;
    3. Investment income (if any and if permitted); and
    4. Reinsurance recoveries of indemnities (if any).

    (2) Only the following will be paid out of the Agricultural Products Insurance Fund:

    1. Indemnities under Contracts of Insurance;
    2. Any amounts paid or advanced by Canada to Ontario that need to be repaid; and
    3. The payment of premiums for the reinsurance of Ontario's liabilities pursuant to a reinsurance agreement.
  2. Despite anything contained in this Order and the Operational Document, if there is a conflict between this Order or the Operational Document and the Agricultural Products Insurance Act (Ontario), 1996, the Agricultural Products Insurance Act (Ontario), 1996 will prevail. The determination of whether a conflict exists between this Order or the Operational Document and the Agricultural Products Insurance Act (Ontario), 1996 will follow the same process as set out in section 13(1) of this Order.

Appeals On Decisions Made in Relation to Insurance Plans

  1. An Insured Producer who is not satisfied with a decision made in relation to a Contract Of Insurance may appeal that decision in accordance with the process set out under the Agricultural Products Insurance Act (Ontario), 1996. For greater certainty, nothing in this Order or the Operational Document expands upon any right of appeal that is provided for under the Agricultural Products Insurance Act (Ontario), 1996.

Funding for AgriInsurance

  1. (1) Any Program Payment made under AgriInsurance toward:
    1. Premiums for Catastrophic Production Loss Coverage;
    2. Premiums for Comprehensive Production Loss Coverage;
    3. Premiums for High-Cost Production Loss Coverage;
    4. Indemnities paid in relation to a Contract Of Insurance; and
    5. Wildlife Compensation under OIC 1313/2011, will not exceed forty percent (40%) of the total cost of those expenses.

    (2) Despite section 108(1)(e) of this Order, a Program Payment made under Wildlife Compensation may be topped up by up to and additional twenty percent (20%) above Ontario's forty percent (40%) to provide full compensation for the loss.

    (3) Any Administrator Payment made to an Administrator will not exceed forty percent (40%) of the total costs of those expenses.

Part XI - AgriRecovery

  1. AgriRecovery, as continued under Part X of the OIC, is continued under this Order, subject to the requirements set out in this Part XI of the Order.

Interpretation

Definitions
  1. For the purposes of this Part XI of the Order, the terms below will have the following meanings:

    "AgriRecovery Guidelines" means the written document setting out the requirements, terms and conditions governing the operation of AgriRecovery that are in addition to what is set out under this Part XI of the Order;

    "AgriRecovery Initiative Guidelines" means the written document setting out the requirements, terms and conditions governing a specific response to an event under AgriRecovery that are in addition to what is set out under this Part XI of the Order;

    "CFIA" means the Canadian Food Inspection Agency; and

    "Initiative" means a response to a disaster pursuant to this Part XI of the Order.

Purpose

  1. The purpose of AgriRecovery is to facilitate the development of Initiatives designed to help producers with extraordinary costs of activities necessary to resume business operations as quickly as possible after a disaster and/or extraordinary costs associated with short-term actions necessary to minimize/contain the impacts of the disaster on producers. AgriRecovery is not intended to cover production and revenue/income losses resulting from disaster or replace the need for multi-year strategies required to assist producers to adjust to long-term realities of disaster.

Program Operation

Criteria for Determining if AgriRecovery Initiative should be Implemented
  1. (1) The criteria for determining whether an AgriRecovery Initiative should be implemented to respond to a disaster will include:
    1. Whether the event results in a collective experience with significant negative impacts or individual disease or pest events with potential for significant negative impacts on a sector;
    2. Whether the event results in extraordinary costs directly related to activities necessary for producers to resume production and/or mitigate the impacts after the event; and
    3. The event is not cyclical or long-term in nature.

    (2) For the purposes of section 112(b) of this Order, extraordinary costs will be considered in light of:

    1. The existing Programs outside of AgriRecovery under this Order;
    2. Other financial assistance programs offered by Canada and/or Ontario; and
    3. Private sector risk management tools.

    (3) Despite sections 112(1) and 112(2) of this Order, the following events will not be considered eligible for assistance under AgriRecovery:

    1. Recurring events that are deemed to be insurable or which can be effectively addressed through the existing Components under this Order, other financial assistance programs offered by Canada and/or Ontario or other private sector risk management tools;
    2. Events that can be managed by existing programs;
    3. Cyclical market trends that result in income/revenue losses;
    4. The destruction of an individual's property where there is no impact on the sector;
    5. Long-term market trends;
    6. Cancellation of a contract or market loss not related to a disaster event;
    7. Market loss due to changing consumer preference;
    8. Trade actions that are not directly related to a disease or pest event; and
    9. Market-driven situations.

AgriRecovery Guidelines

  1. The Program Administrator will work with Canada to create the AgriRecovery Guidelines.
  2. The assessment process to determine whether an event is eligible for assistance under AgriRecovery, through the implementation of an Initiative, will be set out in the AgriRecovery Guidelines.

No Minister's Order for Initiative Under AgriRecovery Needed

  1. (1) The Program Administrator is not required to have an order under section 6.2 of the Ministry of Agriculture, Food and Rural Affairs Act to implement an Initiative under AgriRecovery since such a response is already covered under this Order.

    (2) For greater certainty, the Program Administrator will not initiate an Initiative unless any and all other authority or approvals outside of section 6.2 of the Ministry of Agriculture, Food and Rural Affairs Act to offer the Initiative has been obtained.

Initiative Guidelines

  1. (1) The Program Administrator will create, or cause to be created, AgriRecovery Initiative Guidelines for each Initiative that is implemented under AgriRecovery within Ontario.

    (2) For greater certainty, any AgriRecovery Initiative Guidelines created pursuant to section 116(1) of this Order may allow for Program Payments to be provided to eligible Persons for expenses incurred prior to their posting on the applicable website, provided the following requirements are met:
    1. The Program Administrator posts, or causes to be posted, the AgriRecovery Initiative Guidelines in a timely manner to the applicable website after the event is found to meet the requirements to qualify under AgriStability; and
    2. Any amendments to the AgriRecovery Initiative Guidelines after they have been posted on the applicable website are, for greater certainty, subject to the requirements set out in section 14(5) of this Order.

Eligibility

  1. (1) No Person will be eligible to participate in an Initiative under AgriRecovery unless that Person meets all of the requirements set out in section 37(2) of this Order as well as this Part XI of the Order and the AgriRecovery Initiative Guidelines.

    (2) At a minimum, the Person will agree to be bound by the requirements, terms and conditions of AgriRecovery, as set out in this Order and the AgriRecovery Initiative Guidelines.

Program Payments Under AgriRecovery

  1. No Program Payments will be made under an AgriRecovery Initiative for the following costs/losses:
    1. Damage to crops covered by AgriInsurance;
    2. Income declines that can be adequately addressed through AgriStability and the use of targeted advances;
    3. Losses due to diseases covered by the CFIA;
    4. Destruction of property that is reasonably insurable through private insurance products; and
    5. Multi-year compensation for market loss due to a disease event where it is evidence that the market will not return in a short or intermediate term.
  2. A limit/cap on the amount of Program Payment that a Participant may receive under an AgriRecovery Initiative may be set out in the AgriRecovery Initiative Guidelines.

Funding for AgriRecovery

  1. (1) Any Program Payments made under AgriRecovery will not exceed forty percent (40%) of the total payment the Participant is eligible to receive under AgriRecovery.

    (2) Any Administrator Payment made to an Administrator will not exceed forty percent (40%) of the total costs of those expenses.

Part XII – Collection Of Debts Arising Under The Program

  1. The Program Operator will:
    1. Collect any debts arising under a Component that the Program Operator is responsible for administering in a timely manner; and
    2. Cause any Administrator to collect any debts arising under the Component that that Administrator is responsible for administering in a timely manner.
  2. Any Program Payment a Person may be eligible to receive under the Program may be set off against any existing debt that that Person owes to Canada or Ontario.
  3. The termination of a Component will not, in any way, affect the obligation of a Recipient to repay any outstanding amounts owing under that Component.
  4. Any right of set-off provided under this Order is in additional to any other remedies that Canada or Ontario may have at law, in equity or otherwise to recover any debt that a Recipient may owe to Canada or Ontario as a result of that Recipient receiving a Program Payment, through administrative error or otherwise, under the Program that that Recipient was not otherwise eligible to receive.

PART XIII – General

  1. Funding for the Program is being provided in connection with a social and economic policy and this Program is considered to be a social or economic program.

This Order is effective as of the date of signature set out below.

Original signed by

The Honourable Jeff Leal
Minister of Agriculture, Food and Rural Affairs

Executed on this 7th day of March, 2018.


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E-mail: ag.info.omafra@ontario.ca
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