Law:Agricultural Products Cooperative Marketing Act

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R.s.c., 1985, c. A-5

An Act to assist and encourage cooperative marketing of agricultural products


Contents

Short Title

Short title

1. This Act may be cited as the Agricultural Products Cooperative Marketing Act.

R.S., c. A-6, s. 1.


Interpretation

Definitions

2. In this Act,

“agricultural product”

« produit agricole »

“agricultural product” means

(a) any kind of grain other than wheat that is grown in the area that is defined as the designated area by the Canadian Wheat Board Act,

(b) milk and milk products,

(c) vegetables and vegetable products,

(d) livestock and livestock products,

(e) fruit and fruit products,

(f) poultry and poultry products,

(g) honey,

(h) maple syrup,

(i) tobacco, and

(j) any other product of agriculture designated by the Governor in Council;

“cooperative association”

« association coopérative »

“cooperative association” means an association of primary producers having for its object the marketing, under a cooperative plan, of agricultural products produced by primary producers;

“cooperative plan”

« plan coopératif »

“cooperative plan” means an agreement or arrangement for the marketing of agricultural products that provides for

(a) equal returns to primary producers for agricultural products of the like grade and quality,

(b) the return to primary producers of the proceeds of the sale of all agricultural products delivered under the agreement or arrangement and produced during the year, after deduction of processing, carrying and selling costs and reserves, if any, and

(c) an initial payment to primary producers of the agricultural product to which the agreement relates of an amount fixed by regulations made by the Governor in Council on the recommendation of the Minister with respect to a reasonable amount that does not exceed the amount estimated by the Minister to be the amount by which the average wholesale price according to grade and quality of the agricultural product for the year in respect of which the initial payment will be made will exceed the processing, carrying and selling costs thereof for that year;

“initial payment”

« paiement initial »

“initial payment” means the sum paid or credited for merchandise delivered or money advanced to primary producers of an agricultural product to be marketed under only one cooperative plan;

“Minister”

« ministre »

“Minister” means the Minister of Agriculture and Agri-Food;

pan class="Def“processor”

« conditionneur »

“processor” means a person engaged in the preparation or conversion of an agricultural product for marketing;

“selling agency”

« organisme de vente »

“selling agency” means the person authorized by one or more cooperative associations, one or more processors or one or more cooperative associations and processors to market an agricultural product under only one cooperative plan;

“year”

« année »

“year” means such period of twelve months as the Minister may designate as being the year of production of an agricultural product.

R.S., 1985, c. A-5, s. 2; 1994, c. 38, s. 25.


Agreements

Payment to selling agency

3. (1) The Minister may, with the approval of the Governor in Council, by agreement with a cooperative association, processor or selling agency, undertake that if the average wholesale price of an agricultural product of any grade or quality produced during the year and delivered to a cooperative association, processor or selling agency under only one cooperative plan is less than the initial payment together with the actual processing, carrying and selling costs, which shall not exceed the maximum to be fixed under the agreement in the case of each grade of the agricultural product, there shall be paid to the cooperative association, processor or selling agency the amount, if any, by which the initial payment together with those costs exceeds the average wholesale price computed on the amount of the agricultural product of the grade or quality so delivered.

Determining average wholesale price

(2) In determining the average wholesale price of an agricultural product, the Minister may, with the approval of the Governor in Council, require that any excess over the initial payment and costs in the sales account of a particular grade or grades be applied against any deficit in the sales account of any other grade or grades of the product.

R.S., c. A-6, s. 3.

Discontinuing delivery

4. (1) An agreement made under subsection 3(1) may include a provision that the Minister may on such notice as he deems fair and reasonable require that the delivery of an agricultural product to a cooperative association, processor or selling agency be discontinued with the result that the Minister shall not be liable in respect of any agricultural product delivered to the cooperative association, processor or selling agency after that requirement.

Payments to primary producers to be approved

(2) No payment shall be made to primary producers after the initial payment unless the later payment is first approved by the Minister.

Decision of Minister binding

(3) In the event of a difference arising with respect to the average wholesale price under an agreement made under subsection 3(1), the decision of the Minister is binding.

Plan to benefit primary producers

(4) No agreement shall be made under subsection 3(1) unless the cooperative plan applies to such a proportion of the primary producers within a certain geographical area or to such a proportion of an agricultural product produced in that area that the Minister is of opinion that the marketing of the agricultural product under the cooperative plan will benefit the primary producers.

R.S., c. A-6, s. 3; 1984, c. 40, s. 3.


General

Powers of Minister

5. (1) The Minister may, with respect to any agreement under this Act, with the approval of the Governor in Council, prescribe

(a) variations from the initial payment for the basic grade applicable to other grades of an agricultural product;

(b) the maximum amount that may be allowed under the agreement for processing, carrying or selling costs with respect to the marketing of an agricultural product; and

(c) any other matter deemed necessary for the efficient administration of this Act.

Idem

(2) The Minister may prescribe

(a) the manner in which the average price or average wholesale price of an agricultural product shall be ascertained;

(b) the manner of ascertaining the proportion of primary producers in a designated geographical area whose agricultural product is to be marketed under a cooperative plan; and

(c) the manner of ascertaining the proportion of an agricultural product produced in a designated area that is to be marketed under a cooperative plan.

R.S., c. A-6, s. 4.

Officers, clerks and employees

6. The Governor in Council may appoint such officers, clerks and employees as may be deemed necessary for the efficient administration of this Act and those officers, clerks and employees hold office during pleasure and shall receive such salary or other remuneration as may be fixed by the Governor in Council.

R.S., c. A-6, s. 5.

Inspection and audit

7. In the case of any agreement made under subsection 3(1), the books and accounts of the selling agency and of every cooperative association or processor to whom the agreement relates shall be inspected and audited by an accountant or professional auditor approved by the Governor in Council and the reports of the accountant shall be submitted to the Minister as required.

R.S., c. A-6, s. 6.

Report to be laid before Parliament

8. The Minister shall at the end of the fiscal year prepare a report of the agreements made under this Act and shall lay it before Parliament on any of the first fifteen days that either House of Parliament is sitting after he completes it.

R.S., c. A-6, s. 7; 1977-78, c. 22, s. 3.

Payment of liabilities under agreement

9. Where at any time the Minister becomes liable under any approved agreement under this Act, the Minister of Finance may, out of the unappropriated moneys forming part of the Consolidated Revenue Fund and with the approval of the Governor in Council, pay the amount for which the Minister may be liable under the agreement.

R.S., c. A-6, s. 8.

Administrative expenses

10. All administrative expenses, including travel or other expenses, incurred under this Act shall be paid out of the money provided by Parliament for the purpose.

R.S., c. A-6, s. 9.


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