Order in Council 125/2019

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 corn industry is an important part of Ontario’s agricultural sector;

And whereas the Previous Order continued the Program – which is aimed at facilitating access for Producers to low-interest A-Loans, through the provision of a Guarantee to the Administrator, so those Producers can produce Eligible Commodities;

And whereas corn is an Eligible Commodity under the Program;

And whereas the presence of DON in corn is providing a source of economic challenge and uncertainty for those Producers enrolled in the Program who have obtained Loans to produce corn;

And whereas the Government of Ontario would like to provide assistance to those Producers enrolled in the Program in a manner that allows those Producers to determine how best to manage the risk DON creates;

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 7(5) of the Ministry of Agriculture, Food and Rural Affairs Act allows for a program to come into effect before it is established;

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), 7(5) 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), 7(5) 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. 1. For the purposes of this Order, the following terms will have the following meanings:

      “DON”

      means Deoxynivalenol Mycotoxins;

      “Order”

      means this Order-in-Council; and

      “Previous Order”

      means Order-in-Council 1659/2015, as amended by Order-in-Council 504/2016, 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 – Addition Of French Translation To Previous Order

2. The Previous Order is amended by adding the French translation set out in Appendix 1 of this Order.

Part 3 – Amendments To Part I – Interpretation Of Previous Order

3. The reference to “Advance Payment for Crops Act (Canada)” in the definition of “A Loan Credit Review” in section 2 of the Previous Order is revoked and replaced with the following:
   Agricultural Growth Act (Canada), including any successor Act,
4. The definition of “Total Guaranteed Amount” in section 2 of the Previous Order is revoked and replaced with the following:

   “Total Guaranteed Amount” means:

   1. For the 2019 and 2020 Program Years, up to two hundred million dollars ($200,000,000.00), which is the maximum aggregate total of all A-Loans allowed to be outstanding at any one time, and
   2. For the 2021 Program Year and afterwards, up to one hundred twenty million dollars ($120,000,000.00), which is the maximum aggregate total of all A-Loans allowed to be outstanding at any one time.

Part 4 – Amendments To Part IV – Administration Of The Commodity Loan Guarantee Program Of The Previous Order

5. Section 15(8)(a) of the Previous Order is revoked.
6. Section 17(4) of the Previous Order is amended by revoking the paragraph immediately under section 17(4)(b), beginning with the words “that agreement is” and ending with the words “upon its effective date” and replaced with the following:

   that agreement is sufficient until a new agreement is entered into.

Part 5 – Amendments To Part V – Eligibility Requirements For Loans And Producers Under The Commodity Loan Guarantee Program Of The Previous Order

7. The following is added as section 25(2)(j.1) to the Previous Order:
   • (j.1) Despite section 25(2)(j)(iv) of this OIC, but without affecting the other instances where an A-Loan may become due and payable pursuant to sections 25(2)(j)(i), (ii), (iii) or (v) of this OIC, an A-Loan entered into in the 2018 or 2019 Program Years does not become due until September 30 of the following Program Year in which the A-Loan was issued, provided:
     1. Any subrogation of claims with any other lenders the Producer had to make in relation to security the Producer provided for A-Loan have been extended to September 30,
     2. The amount owing under the extension is counted towards the Producer’s limit on the total aggregate amount for all outstanding A-Loans set out under section 25(2)(k) of this OIC, and
     3. The A-Loan Agreement is amended to reflect payment under the A-Loan is not due until September 30;
8. Section 26(2)(c) of the Previous Order is revoked and replaced with the following:
   3. Entering into the A-Loan will not result in the Producer exceeding the total aggregate amount for all outstanding A-Loans set out under section 25(2)(k) of this OIC;

Part 6 – Amendments To Part VII – Process In Which The Administrator Or Producer Is In Default Of An L-Loan Or An A-Loan And Consequences Of Default Under The Commodity Loan Guarantee Program Of The Previous Order

9. Section 36(2) of the Previous Order is revoked and replaced with the following:
   2. The Administrator shall notify the Minister of any defaults on a monthly basis.

Part 7 – Amendment To Schedule “A” Of The Previous Order

10. Schedule “A” of the Previous Order is revoked and replaced with the Schedule “A” set out in Appendix 2 of this Order.

Part 8 – Transition From Previous Order To Current Order

11. 1. Sections 2, 6, 8 and 9 of this Order come into effect on March 31, 2016.
    2. Section 3, of this Order comes into effect on the earlier of when the Agricultural Growth Act (Canada) received Royal Assent or was proclaimed into force and effect.
    3. Sections 4, 7 and 10 of this Order come into effect on November 1, 2017.
    4. Section 5 comes into effect when this Order comes into effect.

This Order comes into effect upon signature.

Appendix 1

Appendix 2