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 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 the Previous Order was amended by Order-in-Council 125/2019 to provide temporary relief for the 2019 and 2020 Program years by: (1) extending the date in which an A-Loan had to be repaid from February 28 to September 30; and (2) increasing the Total Guaranteed Amount to two hundred million dollars ($200,000,000.00);

And whereas the temporary relief set out in Order-in-Council 125/2019 proved to be an effective measure;

And whereas making the temporary relief set out in Order-in-Council 125/2019 permanent would further assist producers enrolled in the Program on an on-going basis;

And whereas other amendments to the Program are being implemented to reduce administrative burden on producers enrolled in the Program without undermining financial due diligence;

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), 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 order that the Previous Order be amended as set out herein.

Part 1 – Interpretation Of This Order

    1. For the purposes of this Order, the following terms will have the following meanings:
      “Order”
      means this Order-in-Council;
      “Previous Order”
      means Order-in-Council 1659/2015, as amended by Order-in-Council 504/2016 and Order-in-Council 125/2019;
    2. Any capitalized term not defined in this Order will have the same meaning as set out under the Previous Order.

Part 2 – Amendments To Part I – Interpretations Of The Previous Order

    1. The definition of “A-Loan Credit Review” in the Previous Order is revoked and replaced with the following:

      “A-Loan Credit Review” means a review of the Applicant’s creditworthiness, as set out in the Guidelines;

    2. The definition of “Program Year” in section 2 of the Previous Order is revoked and replaced with the following:

      “Program Year” means November 1 of one calendar year and ends on October 31 of the following calendar year;

    3. The definition of “Total Guaranteed Amount” in section 2 of the Previous Order is revoked and replaced with the following:

      “Total Guaranteed Amount” means two hundred million dollars ($200,000,000.00);

Part 3 – Amendments To Part IV – Administration Of The Commodity Loan Guarantee Program In The Previous Order

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

      (t) Setting out any targets regarding the issuance of A-Loans the Minister thinks would be in the public interest to have;

    2. Section 15(7) of the Previous Order is revoked.
    3. Section 17(4) of the Previous Order is revoked.

Part 4 – Amendments To Part V – Eligibility Requirements For Loans And Producers Under The Commodity Loan Guarantee Program Of The Previous Order

    1. Section 25(2)(e) of the Previous Order is amended by striking out the words “at any time” and replacing those words with “on or before the due date”.
    2. Section 25(2)(g) of the Previous Order is revoked and replaced with the following:

      (g) The Administrator is not allowed to assign the A-Loan to any other Person without the Minister’s prior written consent and such consent may take the form of a letter signed by the Minister that identifies:

      1. Who the Administrator is,
      2. Who the Person the Administrator wants to assign the A-Loan to, and
      3. Words to the effect that such assignment is authorized;
    3. Section 25(2)(j)(iv) of the Previous Order is revoked and replaced with the following:
      1. By September 30 of the Program Year in which the A-Loan was issued;
    4. Section 25(2)(j.1) of the Previous Order is revoked.
    5. The following is added as section 25(2.1) to the Previous Order:

      (2.1) Section 25(2)(j)(iv) of this Order will not apply to any A-Loans issued for the 2020 Program Year if the following conditions have not been met:

      1. Any subrogation of claims with any other lenders the Producer had to make in relation to the security the Producer provided for the A-Loan have been extended to September 30, 2021;
      2. The amount owing under extension is applied toward 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, 2021;
    6. The following is added as section 25(2.2) to the Previous Order:

      (2.2) Where the conditions set out under section 25(2.1) of this OIC are not met for the 2020 Program Year, the repayment date for the A-Loan will be February 28, 2021.

    7. Section 25(2)(k) of the Previous Order is revoked and replaced with the following:

      (k) The aggregate of all A-Loans issued to a Producer will not exceed seven hundred fifty thousand dollars ($750,000.00).

    8. Section 26(2)(j) of the Previous Order is amended by adding the word “Contribution;” after the word “Contingency”.

Part 5 – Amendments To Part VIII – The Guarantee Under The Commodity Loan Guarantee Program Of The Previous Order

    1. Section 44(1) of the Previous Order is amended by striking out the word “days” and replacing it with the words “Business Days”.

Part 6 – When Order Comes Into Effect

    1. Section 2(1) of this Order comes into force and effect on November 1, 2021.
    2. Sections 2(2) to 6 come into force and effect on November 1, 2020.
Ministry of Agriculture, Food and Rural Affairs

Approved and Ordered: February 10, 2021