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Bill C-264

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First Reading

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	2nd Session, 37th Parliament, 51 Elizabeth II, 2002
	House of Commons of Canada
	BILL C-264
	An Act to provide cost of production protection for the family farm
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short title	1. This Act may be cited as the Family Farm Cost of Production Protection Act.
Definitions	2. The definitions in this section apply in this Act.
``average cost of production'' « coût moyen de production »	``average cost of production'' means the average of the input costs per acre for a year of all of the designated products prescribed as being typical products in the zone, weighted by the percentage of acres used for each designated product in the zone averaged over the previous three years.
``average netback'' « revenu net moyen »	``average netback'' means the average of the netback to farm gate per acre for each of the designated products prescribed as being typical products in the zone, weighted by the percentage of acres used for each designated product in the zone averaged over the previous three years.
``designated product'' « produit désigné »	``designated product'' in respect of a farming zone means
	(a) a livestock produced for food or for breeding for food production, or
	(b) a crop,
	prescribed for the purposes of this Act as a product typically produced or suited to production in that farming zone.
``family farm'' « exploitation agricole familiale »	``family farm'' means a farm
	(a) operated by a family or extended family, whether or not incorporated, and
	(b) of which the members of the family who are actively engaged in full-or part-time farming or are retired from such activity are directly or indirectly the beneficial owners of seventy-five percent or more of the farm.
``farming zone'' « zone agricole »	``farming zone'' means an area prescribed as an area in which the soil type and weather are sufficiently consistent to enable the establishment of a reasonably widely applicable cost of production.
``input cost'' « coût des facteurs de production »	``input cost'' means the cost of production of a designated product, including but not limited to cost for land and buildings, labour, fuel, utilities, seed, fertilizer, pesticide, feed and animal health that would be incurred on a family farm in a farming zone taking into account the typical costs and typical yields of marketable product at the time in the zone.
``Minister'' « ministre »	``Minister'' means the Minister of Agriculture and Agri-Food.
``netback to farm gate'' « revenu net de l'exploitation agricole »	``netback to farm gate'' means the average return to a farm from sales of a designated product net of freight, cleaning and other costs incurred outside the farm gate.
``qualifying land'' « terre admissible »	``qualifying land'' means land that is used for production of one or more designated products.
Regulations	3. (1) The Governor in Council may, on the recommendation of the Minister, make regulations
	(a) listing the designated products that are typical in each farming zone;
	(b) subject to subsection (2), prescribing, for each farming zone, the typical average input costs of designated products in a farming zone on the basis of marketable product;
	(c) subject to subsection (2), prescribing, for each farming zone, the typical average netback to farm gate of designated products in a farming zone; and
	(d) prescribing terms that are by this Act to be prescribed.
Independent auditor	(2) The Minister shall not recommend a regulation for the purposes of paragraph (1)(b) or (c) unless it has first been audited and approved by an independent auditor who
	(a) is experienced in agriculture economics;
	(b) has been named by the Minister for the purposes of this Act after consultation with representatives of the farming community; and
	(c) has been approved by the Auditor General of Canada.
Support payments	4. In respect of every year, the Minister shall designate a payment per hectare to be made to every family farm in a farming zone, for land that is qualifying land in that year on the farm, that equals the amount, if any, by which the average cost exceeds the average netback to farm gate, per hectare of production of designated products in the farming zone, weight averaged by the amount of each designated product produced in the zone in that year and the previous two years.
Application	5. Section 4 applies to 2002 and the succeeding nine years.

Bill C-264

BILL C-264