On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

Whereas the Government of Ontario recognizes the important economic and social contribution agriculture plays within Ontario;

And whereas the Government of Ontario wants to further foster the growth of agriculture within Ontario;

And whereas the Cattle Industry is an important part of Ontario’s agricultural sector;

And whereas Co-Operative are an important part of the Cattle Industry;

And whereas the Previous Order continued the Program, which is aimed at facilitating access for Co-Operatives to Loans having low interest rates so the Co-Operative can assist its Members in Producing Cattle through the provision of a Guarantee to the Lender;

And whereas the Cattle Industry has requested certain changes to the Program;

And whereas the Government of Ontario is supportive of the changes the Cattle Industry has asked be made to the Program;

And whereas section 4 of the Ministry of Agriculture, Food and Rural Affairs Act provides the Minister with the authority in relation to the administration of laws relating to agriculture, food and rural affairs, including all of their branches, as well as such other powers and requires the Minister to perform such other functions and duties as are assigned to the Minister by the LGIC;

And whereas section 7(1) of the Ministry of Agriculture, Food and Rural Affairs Act allows the LGIC to establish, upon the recommendation of the Minister, a program for the encouragement of any branch of agriculture, food or rural affairs;

And whereas section 8 of the Ministry of Agriculture, Food and Rural Affairs Act allows the LGIC to agree to provide, upon the recommendation of the Minister, a guarantee for the payment of any loan or loans made to farmers for the encouragement of any branch of agriculture or food , upon such terms the LGIC considers proper;

And whereas sections 49 and 54 of the Legislation Act, 2006 has the effect of providing the LGIC with the power to amend, revoke or replace from time to time an order establishing a program under sections 7(1) and 8 of the Ministry of Agriculture, Food and Rural Affairs Act;

And whereas the Program was established pursuant to sections 7(1) and 8 of the Ministry of Agriculture, Food and Rural Affairs Act;

And whereas the Minister has recommended the amendments to the Program contained herein;

Now therefore and pursuant to my authority under sections 7(1) and 8 of the Ministry of Agriculture, Food and Rural Affairs Act and sections 49 and 54 of the Legislation Act, 2006, I hereby order the following:

Part 1 – Interpretation Of This Order

    1. For the purposes of this Order, the following terms will have the following meanings:
      “Loan”
      means a loan, via the provision of a revolving credit facility or similar financial transaction, by a Lender to a Co-Operative;
      “Member”
      means an entity which has paid the Co-Operative’s annual membership fee for the current Program Year;
      “Order”
      means this Order-in-Council; and
      “Previous Order”
      means Order-in-Council 702/2016, signed on May 4, 2016, which continued the Program.
    2. Any capitalized term not defined within this Order will have the same meaning as set out under the Previous Order.

Part 2 – Amendments To Part I – Interpretation Of Previous Order

  1. The definition of “Loan” in section 2 of the Previous Order is revoked and replaced with the following:
    “Loan”
    means a loan, via the provision of a revolving credit facility or other similar financial transaction, by a Lender to a Co-Operative;
  2. The definition of “Purchase Order Credit Review” in section 2 of the Previous Order is revoked and replaced with the following:
    “Purchase Order Credit Review”
    means a review of the Applicant’s creditworthiness, as set out in the Program Guidelines;
  3. The definition of “Yearly Allocation” is revoked and replaced, it the proper alphabetical order, with the following:
    “Allocation”
    means the amount each Co-Operative is allocated from the Total Guaranteed Amount, as set out in the Program Guidelines;
  4. The following definitions are added to the Previous Order in their proper alphabetical order:
    “Member”
    means an entity which has paid the Co-Operative’s membership fee for the current Program Year;
    “Residual Cattle”
    means any remaining unsold Cattle purchased under a Purchase Order after the Producer has fully repaid the Co-Operative from the proceeds generated by the sale of some of the Cattle purchased under the Purchase Order;

Part 3 – General Amendment Of previous order

  1. Sections 15(1)(n), 15(1)(0), 21(3), 23(3), 23(4) and 31(2)(e) are amended by revoking the word “Yearly” before the word “Allocation”.

Part 4 – Amendments To Part IV – Administration Of The Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  1. Section 15(1)(l) of the Previous Order is revoked and replaced with:

    (l) Setting out the reporting requirements for Co-Operatives under section 77 of this OIC in the Program Guidelines;

  2. The following is added as section 15(1)(h.1) to the Previous Order:

    (h.1) Setting out the process in which Co-Operatives may transfer members, wind down operations or form a new Co-Operative in the Program Guidelines;

  3. The following is added as section 15(1)(j.1) to the Previous Order:

    (j.1) Setting out the requirements a Co-Operative must follow when undertaking a Purchase Order Credit Review in the Program Guidelines;

  4. The following is added as section 15(k.1) to the Previous Order:

    (k.1) Setting out, subject to section 30(7) of this OIC, the process in which a Co-Operative can return a Producer Deposit to a Producer

  5. Section 15(1)(r) of the Previous Order is revoked and replaced with the following:

    (r) Approving the transfer of members between Co-Operatives, the winding down of Co-Operatives and the formation of new Co-Operatives;

  6. Section 15(1)(u) of the Previous Order is revoked and replaced with the following:

    (u) Authorizing the assignment of all or any part of a Loan issued by a Lender under the Program, including imposing any terms and conditions the Minister believes are reasonable, given the circumstances;

  7. The following is added as section 15(x.1) to the Previous Order:

    (x.1) Setting out the process for dealing with the sale of any Residual Cattle in the Program Guidelines;

Part 5 – Amendments To Part V – Eligibility And Operating Requirements For Lender’s, Co-Operatives, Producers And The Administrator Under The Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  1. The reference to “of” in section 23(2)(b) of the Previous Order is revoked and replaced with “Of”.
  2. Section 23(2)(h)(ii) of the Previous Order is revoked and replaced with the following:

    (ii) Ensuring the Cattle are identified in a reasonable manner in which both the Co-Operative and the Lender has previously agreed upon as soon as practicable after the Cattle have been purchased,

  3. The reference to “members” in section 23(2)(j) of the Previous Order is revoked and replaced with “Members”.
  4. Section 23(2)(k) of the Previous Order is revoked and replaced with the following:

    (k) Have at least twenty (20) Members;

  5. The following is added as section 23(2)(k.1) to the Previous Order:

    (k.1) Of the twenty (20) Members the Co-Operative must have under section 23(2)(k) of this Order, at least three (3) of those Members must have active Purchase Orders outstanding at any one time;

  6. Section 25(2)(g) of the Previous Order is amended by revoking the word “member” and replacing it with the word “Member”.
  7. Section 25(3)(g) of the Previous Order is amended by striking out the word “only”.
  8. Section 25(3)(k) of the Previous Order is amended by revoking the word “member” and replacing it with the word “Member”.

Part 6 – Amendments To Part VI – Assurance Account Under The Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  1. The following is added as section 29.1 to the Previous Order:

    29.1 Despite anything else set out in this OIC, all money on deposit in the Assurance Account forms part of the Assurance Account and may be used in accordance with the requirements set out in this OIC and the Program Guidelines.

  2. Section 30(5) of the Previous Order is revoked and replaced with the following:
    1. If a Co-Operative has used money from its Assurance Account in accordance with Parts VIII and IX of this OIC and:
      1. The use of the money has resulted in one or more Producers having less than the original Producer Deposit for one or more outstanding Purchase Orders in the Assurance Account,
      2. The Co-Operative is not in default of making any payment owing under the Loan,
      3. The Co-Operative plans on continuing operations, and
      4. The Producer Deposit for a Producer planning on entering into a new Purchase Order with the Co-Operative is below the original amount deposited with the Co-Operative,

      the Co-Operative will require the Producer entering into a new Purchase Order to top up the Producer Deposit for the Producer’s outstanding Purchase Orders to the Producer Deposit’s original amount before entering into a new Purchase Order with the Producer.

  3. Section 30(7) of the Previous Order is revoked and replaced with the following:
    1. Subject to section 30(6) of this OIC, the Minister may set out the process in which a Co-Operative may return to the Producer the Producer Deposit in relation to each Purchase Order the Producer has with the Co-Operative in the Program Guidelines, provided that process requires at least fifteen (15) Business Days to have passed from the day the Co-Operative has repaid its Loan in relation to the Producer’s Purchase Order and the day in which the Co-Operative returns the Producer Deposit to the Producer.

Part 7 – Amendments To Part VII – Loans Under The Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  1. Section 31(g) of the Previous Order is revoked and replaced with the following:
    1. The:
      1. Entire Loan shall be repaid on the Lender’s demand; or
      2. Portion of the Loan related to a Purchase Order shall be repaid on the latter of:
        1. The Lender’s demand the portion of the Loan related to the Purchase Order be repaid, provided such demand is not made for a period of:
          1. Twelve (12) months after the Purchase Order was issued if the Co-Operative has not provided the Producer with an extension of time to pay the Purchase Order, or
          2. Fifteen (15) months after the Purchase Order was issued if the Co-Operative has provided the Producer with an extension of time to pay the Purchase Order, or
        2. The date the portion of the Loan related to a Purchase Order is due in accordance with:
          1. Section 55(1) of this OIC unless the Loan Agreement does not allow the Co-Operative and the Lender to agree on another date, or
          2. The agreement the Co-Operative and the Lender made pursuant to section 55(1) of this OIC;

Part 8 – Amendments To Part VIII – Purchase Orders and Purchasing Cattle, Feeder Agreements and Producing Cattle, Selling Cattle and Payments from the sale of cattle under the Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  1. Section 35(1) of the Previous Order is amended by adding the following provision:

    (0.1a) The Applicant is a Member of the Co-Operative;

  2. Section 35(1)(c) of the Previous Order is revoked and replaced with the following:

    (c) Prior to issuing a Purchase Order, the Applicant has passed a Purchase Order Credit Review in accordance with the Program Guidelines;

  3. The second reference to section “42” in the Previous Order is revoked and replaced with “42.1”.
  4. Section 47 of the Previous Order is revoked and replaced with the following:
    • 47.(1) A producer may purchase non-Residual Cattle from the Co-Operative, provided the Cattle are purchased at fair market value.
    • (2) In the event a Producer does not purchase non-Residual Cattle from the Co-Operative at fair market value, the Producer shall pay to the Co-Operative the difference between what the Producer paid for the Cattle and the fair market value for those Cattle.
  5. The following is added as section 47.1 to the Previous Order:
    • 47.1(1) The process for selling Residual Cattle will be set out in the Program Guidelines.
    • (2) Despite section 47.1(1) of this OIC, if the Program Guidelines does not deal with the process for selling Residual Cattle, any Residual Cattle will be deemed to be non-Residual Cattle and the sale of those Cattle to the Producer whose Purchase Order they were purchased under will be governed by section 47 of this Order.

    Part 9 – Amendments To Part IX – Process Where Producer In Default On Purchase Order Or Feeder Agreement Under The Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  6. Section 50 of the Previous Order is amended by striking out the word “shall” and replacing it with the word “may”.
  7. Section 55(1) of the Previous Order is amended by striking out the reference to “fifteen (15)” and replacing it with “twenty (20)”.

     

    Part 10 – Amendments To Part X – Process Where Co-Operative Is In Default Of A Loan Under The Ontario Feeder Cattle Loan Guarantee Program Of Previous Order

  8. Section 58(a) of the Previous Order is amended by adding the words “continue to” after the words “ineligible to”.

     

    Part 11 – Amendments To Part XII – Record-Keeping, Reporting And Audits Of Previous Order

  9. Section 77 of the Previous Order is revoked and replaced with the following:

    77. Each Co-Operative participating in the Program shall provide the Minister with the reports set out in the Program Guidelines by the date indicated in the Program Guidelines.

    Part 12 – Transition

  10. Any action undertaken prior to the date this Order comes into effect will be governed by the Previous Order.

This Order comes into effect upon signature.

Ministry of Agriculture, Food and Rural Affairs

Approved and Ordered: January 31, 2019