Ottawa, Ontario, December 9, 2013 - Today, the Government of Canada introduced a new bill that will stimulate investment and innovation in Canada’s agriculture sector and give Canadian farmers more tools to compete and thrive in world markets and at home.
The Agricultural Growth Act will increase farmers’ access to new crop varieties, enhance trade opportunities and the safety of agricultural products, reduce red tape and contribute to Canada’s overall economic growth.
“Our government is committed to supporting Canada’s farmers and our world-class agriculture industry so they can remain competitive in world markets,” said Agriculture Minister Gerry Ritz. “Armed with the latest science, tools and practices, our agriculture sector will continue to be an important driver of Canada’s economy.”
Among the key changes being proposed in this bill are amendments to the Plant Breeders’ Rights Act (PBR Act) to align with the International Union for the Protection of New Varieties of Plants (UPOV'91) which would update Canada's legislation from the outdated UPOV'78 framework. The amendments would include Farmer's Privilege which allows farmers to use seeds from the crops they grow.
Strengthening the intellectual property rights for plant breeding in Canada will encourage investment in Canadian research and development. That will give Canadian farmers more access to new and innovative seed varieties, which could enhance crop yield, improve disease and drought resistance, and meet specific global trade demands.
To help Canadian farmers benefit from the latest scientific research from around the world, the bill also provides the Canadian Food Inspection Agency (CFIA) with the authority to consider foreign reviews, data and analyses during the approval or registration of new agricultural products in Canada, allowing for a more effective approvals process.
“Agriculture worldwide is evolving in response to growing global populations and demand,” said Bev Shipley, MP for Lambton-Kent-Middlesex and Chair of the Standing Committee on Agriculture and Agri-Food. “Knowing that, our government will continue to provide better tools and services to help Canadian farmers prosper on world markets and serve the needs of Canadians.”
The Act includes a new licensing and registration regime for animal feed and fertilizer operators and establishments, increased monetary penalties for violations, stronger controls for agricultural products at the border and requirements for more stringent record keeping to enhance safety.
The bill also amends the Agricultural Marketing Programs Act (AMPA) and the Farm Debt Mediation Act (FDMA). The proposed changes are designed to:
- Simplify delivery and ease access to the Advance Payments Program for producers
- Allow for multi-year advance guarantee agreements and repayment agreements with administrators improving delivery
- Expand the use of cash repayments
- Provide greater flexibility and options for what will be accepted as security allowing producers to secure larger advances
- Provide flexibility allowing breeding animals to be eligible under the program
- Adjust the rules related to the repayment of advances, producers in default, default penalties and stays of default
- Expedite processing under the Farm Debt Mediation Act giving producers quicker resolutions.
These amendments follow extensive consultations with producers and industry and will be cost-neutral for the industry.
For more information, media may contact:
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
Follow us on Twitter: @AAFC_Canada
Canadian Food Inspection Agency
613-773-6600
Joel Taguchi
Director of Communications
The Office of Gerry Ritz, Minister of Agriculture
613-773-1059
Agricultural Growth Act: Proposed Changes to the Agricultural Marketing Programs Act (AMPA)
The Advance Payments Program (APP) is designed to increase marketing opportunities for eligible producers of agricultural products by improving their cash-flow. This is achieved through guaranteeing the repayment of cash advances issued to producers against their agricultural product(s). The APP is delivered by administrators (i.e. third party organizations - primarily producer organizations), through agreements between them, a financial institution and Agriculture and Agri-Food Canada.
Under the APP, the federal government guarantees repayment of cash advances issued to farmers by the producer organization. These guarantees help the administrator to borrow money from financial institutions at lower interest rates and issue producers a cash advance on the anticipated value of their farm product that is being produced and/or that is in storage.
The APP helps crop and livestock producers meet their short term financial obligations by providing them with a cash advance based on 50% of the market value of their agricultural products. The APP cash advance is provided at preferential interest rates, and allows them to base their sales decisions on market conditions rather than immediate cash flow needs. Producers are eligible to receive up to $400,000 where the first $100,000 is interest free.
Proposed amendments to the AMPA have been introduced in Parliament to simplify the administration of the APP, reduce red tape, and enhance program flexibility and accessibility.
The proposed changes will:
- Simplify delivery and ease access to the APP for producers by allowing all administrators to issue advances on any type of agricultural product, not just those they market. For producers this means they could have the option of obtaining advances on all their eligible commodities from a single window.
- Allow for multi-year advance guarantee agreements and repayment agreements with administrators to reduce red tape for producers and improve program delivery.
- Provide greater flexibility and options for what will be accepted as security. This means producers could qualify for larger advances by putting up additional security.
- Provide flexibility, through the regulations, to allow breeding animals to be eligible under the program.
- Clarify definitions of a “producer”, such as removing the requirement that an applicant be principally occupied in farming under the Act, so that the APP is reflective of the realities of the sector today.
- Adjust the rules for the repayment of advances, producers who default, default penalties, and stays of default. For producers these changes will increase flexibility and provide more consistency and predictability under the APP.
- Allow the Minister to participate in a mediation under the Farm Debt Mediation Act as a guarantor of the APP advance for better service delivery. For producers this means expedited processing under the Farm Debt Mediation Act and, with the right people at the table to negotiate repayment arrangements, producers will have quicker resolution of their situation.
Proposed Changes to the Farm Debt Mediation Act (FDMA)
The Farm Debt Mediation Act (FDMA) provides the legislative authority for the Farm Debt Mediation Service (FDMS), which offers financial counseling and mediation services to farmers who are having difficulties meeting their financial obligations. It is a free and voluntary service for both producers and creditor(s). The service helps bring producers and their creditor(s) together with a mediator in a neutral forum to reach a mutually acceptable solution.
The amendments will streamline interaction between the AMPA and FDMA, ensuring the Minister can participate in mediation when he is a guarantor of a producer’s debt such as an APP advance.
Existing program rules will remain in place while the Act is before Parliament and until the final authorities are in place.
