- (a) a net income stabilization account program;
- (b) a gross revenue insurance program;
- (c) a revenue insurance program; and
- (d) a crop insurance program.
- (a) the program should not unduly influence the decisions of producers of agricultural products with respect to production or marketing, and should encourage adjustments with respect to production or marketing so as to improve the effectiveness of the responses of producers to market opportunities;
- (b) the level of protection to be provided by, and the relative share of governmental contributions to be provided to, the program in relation to particular agricultural products or classes of agricultural products should be equitable and reasonably consistent with all other agreements, taking into account regional diversity;
- (c) the program should encourage the long-term social and economic sustainability of farm families and communities;
- (d) the program should be compatible with Canada’s international obligations; and
- (e) the program should encourage long-term environmental and economic sustainability.
Marginal note: Elements to be contained in all agreements
- 5 (1) An agreement shall provide for the required elements of each program to be established under the agreement, including, without limiting the generality of the foregoing, any elements that may be prescribed and the following required elements:
- (a) the criteria for determining the eligibility of producers for participation in the program;
- (b) the agricultural products or the grade, quality, variety, class, type or form of agricultural products or any special method of production thereof to which the program applies and the criteria for determining their eligibility to be covered by the program, including any ceilings to be applied on or minimum levels to be assigned to the quantity or value thereof;
- (c) the manner of determining the income of producers and the manner of determining the value of the eligible agricultural products produced by them;
- (d) the conditions under which and the procedure by which producers may enrol in or opt out of the program;
- (e) the circumstances in which and the conditions under which a payment will be made to a producer or group of producers, the method of determining the amount of a payment, and the manner in which the payment will be made;
- (f) the categories of expenses incurred in the administration of the program that are to be shared, and the manner in which those expenses are to be shared and paid;
- (g) the method of settling any account that remains outstanding under the agreement at the time of its termination or expiration;
- (h) a covenant by the province that it will keep and maintain such classes of records, and will furnish the Minister with such classes of information, as are specified;
- (i) the terms and conditions of financial audits and compliance audits in respect of the program; and
- (j) the duration of, and the manner of amending, the agreement.
- (a) provide for the circumstances and conditions under which insurance may be withheld, restricted or enhanced for the purpose of protecting the environment and of encouraging sound management practices to ensure environmental sustainability; and
- (b) require an environmental assessment of the program to be conducted within two years after the coming into force of the agreement and every five years thereafter, and provide for the manner in which the assessment is to be conducted.
- (a) the establishment of one or more national committees representing the parties to the agreement and the producers, and such technical experts as may be considered appropriate;
- (b) the powers and duties of the committees, including a continuing review of the operation of this Act and the agreements and report to the Minister periodically and at least once a year on its recommendations on the administration of the agreements, this Act and any amendments it considers advisable;
- (c) the manner in which members of the committees are to be appointed; and
- (d) the payment of the remuneration and expenses of members of the committees.
- (a) provide for the method of determining and adjusting the level of premiums, the respective share of the premiums to be paid by Canada, the province and the producers and the times at which and the manner in which premiums are to be paid; and
- (b) require that the premiums levied under the program be sufficient to allow the program to be self-sustaining.
Marginal note: Tabling of agreement
- 6 (1) With the concurrence of provinces party to the agreement, the Minister shall cause to be laid before Parliament every agreement made pursuant to section 4 within thirty days of it being made, or, if Parliament is not then sitting, not later than the thirtieth day thereafter that either House of Parliament is sitting.
- Marginal note: Reference to committee (2) An agreement laid before Parliament pursuant to subsection (1) shall be automatically referred to the Standing Committee of the House of Commons on Agriculture.
Marginal note: Additional provisions respecting insurance programs
- 7 (1) An agreement that provides for the establishment of a crop insurance program or gross revenue insurance program shall, in addition to the required elements referred to in subsection 5(1), provide for
- (a) the nature of the losses that may be insured against, including losses arising when seeding or planting is prevented by an agricultural hazard, and the manner of determining those losses;
- (b) the areas to which the insurance program extends in relation to an agricultural product;
- (c) the manner of determining the probable yield and actual yield of an agricultural product in any risk area or in respect of any farm enterprise and the insured acreage thereof;
- (d) the period during which the insurance in respect of an agricultural product is effective;
- (e) particulars of insurance policies to be issued under the program;
- (f) in the case of a crop insurance program, the manner of determining the percentage, not to exceed ninety per cent, of the probable yield of an agricultural product in any risk area or in respect of any farm enterprise that may be insured; and
- (g) in the case of a reinsurance agreement, the portion of the premium receipts to be paid to the Crop Reinsurance Fund referred to in section 13.
- (a) where there is no reinsurance agreement, require that advances to the appropriate accounts be made when the balances in those accounts are not sufficient to make payments to producers in accordance with the terms and conditions of the program, and provide for the manner in which those advances are to be shared between Canada and the province and the manner in which they are to be reimbursed; and
- (b) if any such program is to be administered by the province, contain a convenant by the province
- (i) that it will establish an account for each such program for the payment of indemnities, and
- (ii) that all premium receipts will be used only for
- (A) the payment of indemnities under the program,
- (B) the repayment to the province or Canada of any amounts paid or advanced by the province or Canada, out of funds not derived from the premium receipts, in payment of indemnities under insurance policies, and
- (C) the reinsurance of the liabilities of the province pursuant to a reinsurance agreement, and the reinsurance by the province in any other manner of any portion of its liabilities under the insurance program that is not covered by a reinsurance agreement.
Marginal note: Additional elements respecting net income stabilization account programs
- 8 (1) An agreement that provides for the establishment of a net income stabilization account program shall, in addition to the required elements referred to in subsection 5(1), provide for
- (a) the eligible net sales, eligible production costs, gross margin and maximum eligible net sales, or the methods of determining the sales, costs and margin, that enable a producer to participate in the program;
- (b) subject to subsection (2), the manner in which an account for each producer is to be established and the procedure for making deposits to and withdrawals from the account;
- (c) the maximum balance of any such account;
- (d) the maximum annual contribution of a producer; and
- (e) the manner of determining the contribution to be made by Canada and the provinces, including any interest and bonus in respect of each producer’s account.
- (a) Fund No. 1, to which shall be credited all amounts paid by the producer in respect of the program; and
- (b) Fund No. 2, to which shall be credited all amounts paid in respect of that producer by Canada or a province.
- 1991, c. 22, s. 8
- 2007, c. 35, s. 155
Marginal note: Amendments to agreement
- 9 (1) Subject to this Act and the regulations, an agreement may be amended at any time with the consent of the Governor in Council.
- Marginal note: Termination of agreement (2) An agreement may be terminated
- (a) by the Minister, with the approval of the Governor in Council, where the Minister gives at least two years notice of the intention to terminate the agreement to each province that is a party to the agreement; or
- (b) by mutual consent of the Minister, with the approval of the Governor in Council, and each such province.
Disclosure of Information
Marginal note: Social Insurance Number
- 10 (1) Where so required by an agreement, every producer who enrols, directly or indirectly, as part of a body corporate or other entity, in a program under the agreement shall
- (a) where a Social Insurance Number has not been assigned to the producer, submit an application, in such form as may be prescribed, for the assignment to the producer of a Social Insurance Number; and
- (b) submit notification of the Social Insurance Number assigned to that producer, at the time of enrolling in the program or as soon as possible after the Number is assigned, as the case may be.
- 1991, c. 22, s. 10
- 2012, c. 19, s. 310
