Guidelines for Application for Designation as a Representative Association Under Section 12

Table of Contents

The Application Process

1. General Description
2. Eligibility
3. Application Requirements
4. Criteria for Review of Requests by the Ontario Farm Products Marketing Commission 
5. Procedure Followed in Holding an Expression of Opinion Vote of Producers

Application Process

Application for designation as a 'representative association' under Section 12 of the Farm Products Marketing Act is a multi-step process as outlined below:

1. Written request to the Ontario Farm Products Marketing Commission from the association. (Refer to section 3.0 for Application Requirements.)
2. Review of association's request by Ontario Farm Products Marketing Commission. (For Criteria refer to Section 4.0.)
3. Discussions and clarification of details between the association and Commission staff.
4. Decision of Ontario Farm Products Marketing Commission.
5. If the decision of the Ontario Farm Products Marketing Commission is a positive recommendation to proceed, the next step would be: A recommendation from the Ontario Farm Products Marketing Commission to the Minister to hold an expression of opinion vote of all producers of the farm product. (Refer to Section 5.0.)

1. General Description

Designation as a 'representative association' under Section 12 of the Farm Products Marketing Act implies the following:

1. That the association named is the 'representative association' for all producers in Ontario of that product.
2. That all producers of the product are 'deemed' to be licensed and may be required to pay licence fees to the association unless specifically exempted.
   

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2. Eligibility

1. Group

A group requesting designation must be:

• An association of producers of a farm product other than a regulated product.
• Incorporated under the Agricultural Association Act or the Corporations Act.

 

2. Program Objectives

The objectives of the association must be the stimulating, increasing and improving the producing or marketing of the farm product by: advertising, education, research or other means.

3. Application Requirements

The request/proposal to the Ontario Farm Products Marketing Commission must include:

1. Data
• A list of all producer members of the association.
• A copy of the association's or corporation's by-laws.
• A proposed definition of a producer of the farm product.
• An estimate of the total number of producers of the product in Ontario.
• A petition with at least 15% of producer support for the proposal.

 

2. Licence Fee Proposal
• Details regarding the suggested licence fee and the proposed procedure for collection of licence fees payable by the producer.
• Details of any exemptions from payment of licence fees.

 

3. Cost Benefit Analysis
• A cost/benefit analysis of the program as it may affect the industry, the provincial economy and the end-user or consumer.

 

4. Documentation Re: Support for the Proposal by Affected Parties
• Evidence that the request for licence fee authority, the proposed program of the association and its cost/benefit has been provided to and discussed with all producers.
• Evidence that the request for licence fee authority, the proposed program and the anticipated effects on their business practices has been provided to and discussed with all affected parties, e.g. the purchasers of the product.
• Any information available on support for or negative reaction to the proposal by the affected parties.

 

5. Strategic Plan
   The long term strategic plan should address the following elements:
   • Mission Statement
   • Situation Assessment
   • Strategy
   • Long Term Objectives
   • Financial Projections and Cost-Benefit Analysis

 

6. Operational Plan
   A one-year Business Operational Plan should include the following:
   • Objectives
   • Action Plans (e.g. Marketing; Research; Education, etc.).
   • Financial Plan (e.g. a monthly projection of income and expenses).
   • Staffing and operation of association office (e.g. location; proximity to producers and customers; responsibilities of staff; hours of operation).
     

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4. Criteria For Review Of Requests By The Ontario Farm Products Marketing Commission

• Cost/benefit to the industry and province.
  
• Strength of the strategic plan.
• Percentage of total producers of the product who are members of the association.
• Evidence regarding the extent to which information on the request for designation, including the proposed program and its costs and benefits, has been provided to and discussed with all producers of the product.
• Evidence regarding the extent to which information has been provided and discussed with other affected parties (e.g. dealers, processors, trade, consumers).
  

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5. Procedure Followed In Holding An Expression Of Opinion Vote Of Producers

1. The Minister announces decision to hold a vote.
2. Date(s) is set for vote or for voting deadline, if the vote is conducted by mail.
   
3. An information package is sent by the Ontario Farm Products Marketing Commission to all producers with details of the proposal; eligibility to cast a ballot and arrangements for balloting.
4. Prior to the ballot date, the executive of the association provides information to producers and solicits support for its proposal.
5. The vote is conducted by the Ontario Farm Products Marketing Commission.
6. Independent scrutineers report the results of the vote to the Ontario Farm Products Marketing Commission.
7. The Ontario Farm Products Marketing Commission makes an assessment of producer support based on the Commission's vote criteria of 66 2/3% of producers casting a valid ballot voting in favour, and those voting in favour representing at least 50% of the cumulative production of all producers casting valid ballots.
8. The Ontario Farm Products Marketing Commission makes a recommendation to the Minister, supported by an analysis of producer support, and industry support, and an assessment of economic benefits and costs.