What Does it mean to be Designated as a Representative Association of Producers?

Table of Contents

1. Introduction
2. What Power and Authority does Representative Status give to an Association?
3. What is the Process that an Association must go through in order to be considered for Representative Status?
4. What happens after the Association's Request/Proposal is received by the Ontario Farm Products Marketing Commission?

Introduction

Note: The producer organization must consider how the farm product is to be defined, and whether any exemptions of producers or class, variety, grade or size of the farm product will apply.

What Power And Authority Does Representative Status Give To An Association?

The regulations designating a representative association give that association the right:

• To carry out its program for "stimulating, increasing and improving the producing or marketing locally within Ontario of the farm product".
  
• To require producers of the farm product to pay licence fees to the association.
  
• To require the first buyer of the product from the producer to deduct the licence fees from the money payable to the producer and to forward the fees to the association.
  
• To use the licence fees for the purpose of defraying the expenses of the association in carrying out its program.

What Does Representative Status Not Give To An Association?

• It does not give any of the powers available under the Farm Products Marketing Act other than the power to require the buyer to collect and forward the licence fees.
  
• It does not give the members or staff of the association special protection from personal liability such as that provided to directors and employees of marketing boards under subsection 3(6) of the Farm Products Marketing Act.
  
• It does not give the association rights over any product marketed out of the province. (Federal Agricultural Products Marketing Act does not apply.)

What Type Of Involvement Does The Government/Ontario Farm Products Marketing Commission Have In The Business Of A Representative Association?

• Make regulations to amend or revoke any program established under section 12(3) of the Farm Products Marketing Act.
  
• Place limitations and exemptions on any regulations made under section 12(5).
  
• Make regulations requiring the association to furnish to the Ontario Farm Products Marketing Commission such information and financial statements as the Commission determines.
  
• Fix the amount of any licence fees. (Note: Although the licence fee is fixed in the regulation by government, the association recommends the level of the fee.)
  
• Where a regulation has been made under section 12(3), the Commission may:
  • Appoint any person to inspect the books, records or premises of producers or purchasers of the farm product.
  • Require the producers or purchasers of the farm product to provide any information, returns or reports the Commission determines.
    

What Is The Process That An Association Must Go Through In Order To Be Considered For Representative Status?

Write to the Ontario Farm Products Marketing Commission indicating interest in applying for recognition as a representative association.

Prepare and submit a request to the Commission which should include:

• Association data; e.g. membership list, by-laws, etc. (3.1*).
• A licence fee proposal (3.2*).
• A strategic plan (three years) and first year operations plan for the association (3.5*).
• Documentation regarding the extent and degree to which information on the association's request has been provided to producers and to other affected industry parties (3.4*).
• A cost-benefit analysis of the proposed pro-gram of the association (3.3*).
  
• (* refer to these sections in the OFPMC fact-sheet entitled 'Guidelines for Application for Designation as a "Representative Association" under Section 12 of the Farm Products Marketing Act.)
  

What Happens After The Association's Request/Proposal Is Received By The Ontario Farm Products Marketing Commission?

• The Ontario Farm Products Marketing Commission and its staff review the request/proposal against specific criteria (4.0*).
  
• The Commission may then:
  • Meet with the association to discuss the proposal.
  • Request the association to do additional work or make changes to the proposal.
  • Where appropriate meet with the associated industry parties.
    
• The Ontario Farm Products Marketing Commission makes a decision/recommendation on whether to proceed with the next step. If the recommendation is to proceed, then the Commission conducts an "expression of opinion" vote of producers of the farm product.
  
• Based on the results of the vote and taking into consideration all other pertinent factors, the Commission may then recommend to the Minister that the association be designated as the representative association.
  
• Upon the Minister's approval, a regulation is drafted by Legislative Counsel.
  
• Once drafted and approved the regulation is presented to the Minister for signing.
  
• The regulation is presented to Statutory Business Committee (SBC) for scrutiny and approval.
  
• Once approved by SBC, the regulation goes to Cabinet for its approval.
  
• The final step is signing of the Order-in-Council by the Lieutenant Governor.
  
• The regulation is then filed at which point it becomes law.
  
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