Vol. 150, No. 26 — December 28, 2016
SI/2016-72 December 28, 2016
AGRICULTURAL GROWTH ACT
Order Fixing the Day after the Day on which this Order is Made as the Day on which Section 148 of the Act Comes into Force
P.C. 2016-1157 December 16, 2016
His Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to subsection 154(9) of the Agricultural Growth Act, chapter 2 of the Statutes of Canada, 2015, fixes the day after the day on which this Order is made as the day on which section 148 of that Act comes into force.
(This note is not part of the Order.)
This Order in Council, pursuant to section 154 of the Agricultural Growth Act (AG Act), chapter 2 of the Statutes of Canada, 2015, fixes the day after the day on which the Order is made as the day on which section 148 of the AG Act will come into force.
The purpose of this Order is to bring into force an amendment to subsection 21(2) of the Farm Debt Mediation Act (FDM Act) which is under the responsibility of the Minister of Agriculture and Agri-food (Minister).
Specifically, section 148 of the AG Act amends subsection 21(2) of the FDM Act to require that secured creditors use any form established by the Minister under subsection 26(2) for the purposes of giving the notice required under section 21, and to require that secured creditors provide a copy of this notice to the administrator in accordance with the Farm Debt Mediation Regulations (Regulations).
The FDM Act and Regulations were established to provide a mechanism for mediation between insolvent farmers and their creditors. The FDM Act and Regulations enable the Farm Debt Mediation Service (FDMS) administered by Agriculture and Agri-Food Canada (AAFC) which provides for financial counselling and mediation services for agricultural producers having difficulty meeting their financial obligations.
The AG Act contains a number of amendments to the FDM Act to improve the efficiency of the FDMS and to permit the Minister to participate in mediation when he is a guarantor of a farmer’s debt, but not a creditor. The AG Act received royal assent on February 25, 2015.
All of the amendments to the FDM Act contained in the AG Act, except the amendment in section 148, were brought into force by Governor in Council on February 27, 2015. The remaining amendment in section 148 could not be brought into force without AAFC first making changes to the Regulations.
The necessary regulatory amendments have been drafted and have been submitted for approval together with this Order.
The amendments to the Regulations will come into force concurrently with this Order bringing into force the amendment to subsection 21(2) of the FDM Act.
With the coming into force of the amendment to subsection 21(2) of the FDM Act and the consequential amendments to the Regulations, AAFC will establish the form to be used by secured creditors who provide notice under section 21 of the FDM Act.
Public consultations were not conducted as the amendments to subsection 21(2) of the FDM Act do not affect the public or the service provided under the FDMS. As the changes are internal and administrative in nature, farmers applying to the FDMS will not notice any changes other than improved service delivery.
The amendment to the FDM Act concerns the requirement for secured creditors to use the form established by the Minister for the purpose of giving notice and the requirement that a copy of the form be provided to the administrator. These changes have already been communicated to the affected stakeholder group. The majority of secured creditors already use the form and no negative feedback has been received. As the form is similar to forms already in use, the impact is expected to be negligible.
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Agriculture and Agri-Food Canada