Regulations Amending the Canada Production Insurance Regulations (Miscellaneous Program): SOR/2018-118
Canada Gazette, Part II, Volume 152, Number 13
Registration
June 12, 2018
FARM INCOME PROTECTION ACT
P.C. 2018-713 June 11, 2018
Whereas, pursuant to subsection 18(2) of the Farm Income Protection Actfootnotea, the Minister of Agriculture and Agri-Food has consulted with each province that is a party to agreements entered into concerning the Canada Production Insurance Regulations on the making of the annexed Regulations;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to subsection 18(1) of the Farm Income Protection Actfootnotea, makes the annexed Regulations Amending the Canada Production Insurance Regulations (Miscellaneous Program).
Regulations Amending the Canada Production Insurance Regulations (Miscellaneous Program)
Amendments
1 (1) The definition risk area in section 1 of the Canada Production Insurance Regulations footnote1 is repealed.
(2) Paragraph (a) of the definition indemnités pour les dommages causés par la faune in section 1 of the French version of the Regulations is replaced by the following:
- a) d’une part, ont été causés par la faune précisée dans l’accord;
(3) The definition lignes directrices nationales sur les certifications in section 1 of the French version of the Regulations is replaced by the following:
lignes directrices nationales sur les certifications Lignes directrices élaborées par le gouvernement fédéral en collaboration avec les provinces, avec leurs modifications successives, qui décrivent le travail à effectuer et la documentation requise pour les certifications prévues au présent règlement et qui sont obtenues du ministre sur demande. (national certification guidelines)
(4) The definition programme d’assurance production in section 1 of the French version of the Regulations is replaced by the following:
programme d’assurance production Tout régime d’assurance-récolte prévoyant une protection fondée ou non sur le rendement et pouvant prévoir des indemnités pour les dommages causés par la faune. (insurance program)
2 (1) The portion of subsection 4(5) of the English version of the Regulations before paragraph (a) is replaced by the following:
Level of premium support
(5) The agreement shall provide that the risk-splitting benefit shall be subject to the level of premium support from Canada that is associated with high-cost production coverage, as set out in the agreement, and shall be supported as being feasible by documentation that demonstrates that the following conditions are met:
(2) Paragraph 4(5)(d) of the Regulations is replaced by the following:
- (d) there is sufficient volume of production and availability of data to ensure the financial viability of the risk-splitting benefits.
3 (1) Subparagraphs 7(1)(a)(i) and (ii) of the Regulations are replaced by the following:
- (i) an opinion, signed by an actuary, certifying that premium rate methodologies have been established in an actuarially sound manner, and
- (ii) an opinion, signed by an actuary, certifying that the insurance program is self-sustaining; and
(2) Subsection 7(3) of the Regulations is replaced by the following:
Qualified opinions
(3) If the requirements of paragraph 1(a) have not been met, premium receipts used for calculating a payment from the Crop Reinsurance Fund shall be determined by the Minister using the estimated premium receipts that would have been collected if the opinions had indicated that the requirements of that paragraph had been met.
4 Subsection 8(2) of the French version of the Regulations is replaced by the following:
Mesure statistique du rendement
(2) Pour l’établissement des méthodes d’évaluation du rendement probable, une mesure statistique du rendement fondée sur le rendement réel, par superficie ensemencée, est utilisée. La mesure peut être rajustée pour tenir compte de la capacité de production démontrée par les producteurs et du niveau moyen de qualité du produit agricole par rapport au niveau de qualité couvert par le régime d’assurance.
5 Paragraph 9(1)(a) of the Regulations is replaced by the following:
- (a) require the submission of an opinion, signed by an actuary, certifying that the probable yield methodologies result in probable yields that accurately reflect the producers’ production capability for the agricultural product;
6 The portion of subsection 10(2) of the Regulations before paragraph (a) is replaced by the following:
Tests for probable yield
(2) A production insurance agreement shall require the province to submit documents to the Minister to demonstrate, using insurance data of previous years, that the provincial probable yield of an agricultural product in a year meets either of the following tests, which shall be subject to the national certification guidelines:
7 (1) Subsection 11(1) of the Regulations is replaced by the following:
Time for compliance
11 (1) A production insurance agreement shall include a schedule, in accordance with the national certification guidelines, that sets out the deadline for the province to submit the documents referred to in subsection 10(2) for each insurance plan that is based on yield.
(2) Subsection 11(3) of the Regulations is replaced by the following:
Documents not demonstrating compliance
(3) If the documents submitted by the province do not demonstrate, using insurance data of previous years, that the provincial probable yield for an agricultural product in a given year meets the test set out in either paragraph 10(2)(a) or (b), payments by Canada shall be limited to the amount that would otherwise have been payable under the agreement.
8 (1) The portion of subsection 12(2) of the French version of the Regulations before paragraph (a) is replaced by the following:
Exigences additionnelles
(2) Les méthodologies servant à déterminer la valeur unitaire sont fondées sur l’une des méthodes suivantes :
(2) Paragraph 12(2)(a) of the French version of the Regulations is replaced by the following:
- a) la valeur marchande qui reflète la valeur estimative ou réelle de la production à la ferme ou la valeur de remplacement estimative ou réelle de la production;
9 The portion of section 13 of the Regulations before paragraph (a) is replaced by the following:
Maximum unit value
13 A production insurance agreement shall provide that the province shall submit documents to the Minister to demonstrate, using historical market prices or replacement values, that the maximum unit value of an agricultural product meets either of the following tests, which shall be subject to the national certification guidelines:
10 Subsection 14(1) of the Regulations is replaced by the following:
Time for compliance
14 (1) A production insurance agreement shall provide for the establishment of a schedule, in accordance with the national certification guidelines, that sets out the deadline for the province to submit the documents referred to in section 13 for each insurance plan that is based on yield.
11 The portion of section 17 of the Regulations before paragraph (a) is replaced by the following:
Tests for value of production
17 A production insurance agreement shall provide that the province shall submit documents to the Minister to demonstrate that the value of production of an agricultural product in the province meets either of the following tests, which shall be subject to the national certification guidelines:
12 Subsection 18(1) of the Regulations is replaced by the following:
Deadlines for compliance
18 (1) A production insurance agreement shall provide for the establishment of a schedule, in accordance with the national certification guidelines, that sets out the deadline for the province to submit the documents referred to in section 17 for each insurance plan that is not based on yield.
13 (1) The heading before section 19 of the French version of the Regulations is replaced by the following:
Indemnités pour les dommages causés par la faune
(2) The portion of subsection 19(1) of the French version of the Regulations before paragraph (a) is replaced by the following:
Participation du gouvernement fédéral
19 (1) L’accord sur l’assurance production prévoit que le gouvernement fédéral peut contribuer aux indemnités pour les dommages causés par la faune ci-après :
14 Subsection 21(1) of the French version of the Regulations is replaced by the following:
Indemnités plafonnées
21 (1) L’accord sur l’assurance production prévoit que les indemnités pour les dommages causés par la faune versées à un producteur pour les dommages ou blessures causés à un produit agricole ou pour les dommages causés par la faune à une structure admissibles sont plafonnées à 80 % de la valeur des dommages ou blessures.
15 Section 22 of the French version of the Regulations is replaced by the following:
Paiement unique
22 L’accord sur l’assurance production prévoit des méthodes d’ajustement des pertes et des modalités de versement des indemnités de sorte que le dommage ou la blessure n’est indemnisé qu’une seule fois dans le cas où le dommage ou la blessure causé par la faune au produit agricole peut donner lieu à une indemnisation aux termes du régime d’assurance ainsi qu’aux indemnités pour les dommages causés par la faune.
16 Section 23 of the Regulations is replaced by the following:
Negligence in program administration
23 A production insurance agreement shall provide that no contribution shall be made by the federal government to premiums, wildlife compensation costs for eligible agricultural products, and related administrative expenses that are a consequence of negligence, including wrongful dismissal of personnel, in the administration of the insurance program.
17 Paragraphs 26 (b) and (c) of the French version of the Regulations are replaced by the following:
- b) les méthodes et les mesures utilisées pour déterminer les pertes de production et de qualité et celles couvertes par les régimes d’assurance non fondés sur le rendement, y compris celles qui sont associées aux garanties de fractionnement du risque et aux indemnités pour les dommages causés par la faune;
- c) les procédures administratives qui s’imposent pour appliquer un régime d’assurance et les indemnités pour les dommages causés par la faune.
18 Section 28 of the Regulations is replaced by the following:
Wildlife compensation records
28 If a production insurance agreement includes wildlife compensation, the agreement shall provide that the province shall keep records on the amount of production and value of losses, the number of producers paid, the extent of damage incurred by the agricultural product or area and the value of any structural damage caused by wildlife for which payments are made.
19 (1) The portion of paragraph 29(1)(a) of the French version of the Regulations before subparagraph (i) is replaced by the following:
- a) un rapport annuel sur l’administration du programme d’assurance production — incluant, le cas échéant, les indemnités pour les dommages causés par la faune — qui contient des états financiers vérifiés, y compris :
(2) Paragraph 29(1)(b) of the French version of the Regulations is replaced by the following:
- b) un rapport trimestriel évaluant, par produit agricole, le nombre de contrats d’assurance souscrits, le montant des assurances en vigueur, le montant des primes payées, le nombre d’unités d’exposition ou la zone assurée, le nombre de demandes d’indemnisation acceptées et le montant des indemnités payées;
(3) Paragraph 29(1)(c) of the Regulations is replaced by the following:
- (c) a quarterly report estimating, by agricultural product, the number of claims for indemnity and the amount of indemnities paid for wildlife compensation; and
(4) Paragraph 29(1)(d) of the French version of the Regulations is replaced by the following:
- d) des rapports et renseignements à l’égard des régimes d’assurance et des indemnités pour les dommages causés par la faune, le cas échéant, demandés par le gouvernement fédéral dans le but de vérifier, d’évaluer et de prévoir les engagements financiers futurs du gouvernement fédéral, et d’assurer des liens adéquats entre les programmes d’assurance production et d’autres programmes de gestion des risques d’entreprise.
20 The English version of the Regulations is amended by replacing “A production insurance agreement entered into with a province” with “A production insurance agreement” in the following provisions:
- (a) subsection 2(1);
- (b) the portion of section 5 before paragraph (a);
- (c) the portion of subsection 7(1) before paragraph (a);
- (d) the portion of subsection 9(1) before paragraph (a);
- (e) section 24;
- (f) the portion of section 26 before paragraph (a);
- (g) the portion of section 27 before paragraph (a);
- (h) the portion of subsection 29(1) before paragraph (a).
Coming into Force
21 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The Canada Production Insurance Regulations (SOR/2005-62) [Regulations], which came into force on March 22, 2005, require non-substantive housekeeping amendments. The regulatory amendments address issues raised by the Standing Joint Committee for the Scrutiny of Regulations.
Background
The Regulations assist Canada and the provinces in the establishment of a production insurance agreement to offer an insurance program to agricultural producers. This program, currently known as AgriInsurance, is a federal-provincial-producer cost-shared insurance program that allows producers to purchase insurance products to reduce the financial impact of production losses caused by natural hazards such as drought, flood, frost, excessive heat or disease. All provinces deliver the AgriInsurance program and each provincial administration develops and delivers insurance products to meet the needs of the producers in their province.
The Farm Income Protection Act (FIPA) is the enabling legislation for the Regulations. Under subsection 18(1) of FIPA, the Governor in Council is allowed to make regulations when deemed necessary to carry out the purpose and provisions of FIPA. The Regulations set out various conditions and standards to ensure that federal government funding to provincial AgriInsurance programs is equitable across provinces and commodities. The Regulations also set out provisions to ensure that provincially developed insurance products are actuarially sound and financially viable. According to subsection 18(2) of FIPA, provincial officials delivering AgriInsurance must be consulted by the Minister of Agriculture and Agri-Food prior to amending these Regulations.
Objectives
The objectives of the regulatory amendments are to make non-substantive housekeeping amendments to the Regulations that would
- address a redundant definition;
- correct inconsistent use of terms;
- correct grammatical errors; and
- add further clarification.
Description
Address a redundant definition
- The amendments would remove the definition of “risk area” in Section 1, as it is the same as the plain meaning of the term and is therefore redundant.
Correct inconsistent use of terms
- The amendments would change the term “attestations” in the French version of the Regulations to better align with the term “certification” that is used in the English version.
- The text was also harmonized between the English and French versions in several instances, as when “showing” was replaced with “demonstrate” in the English version to align it with the French term “établissant.”
Correct grammatical errors
- The amendments would correct a grammatical error to the French version to ensure that the right gender was used for an adjective.
Add further clarification
- The amendments would add further clarification, such as in subsection 11(3), by stating the nature of the data used in analysis to demonstrate compliance; and the text “by the federal government” has been added in Section 23 to clarify that the federal government would not contribute funding to the program in the circumstances described in that section. The clarifications reflect current practices and would not result in increased expectations or efforts on behalf of stakeholders.
“One-for-One” Rule
The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this proposal, as there are no costs on small business.
Consultation
The provincial officials are key stakeholders because they deliver the AgriInsurance programs. As required by FIPA, the provincial officials were consulted, and they supported the regulatory amendments. Further, they indicated that they understood that the amendments are non-substantive in nature and do not impact either federal or provincial arrangements nor the design and delivery of provincial insurance programs under AgriInsurance. Additionally, the Minister of Agriculture and Agri-Food sent a letter to his provincial counterparts, informing them of the regulatory amendments.
Given that the amendments are non-substantive and housekeeping in nature and do not impact insurance products available to producers, public consultations were not conducted.
Rationale
The regulatory amendments are non-substantive and housekeeping in nature and do not impact federal or provincial arrangements or the administration, design and delivery of provincial AgriInsurance programs. These amendments address issues that were raised by the Standing Joint Committee for the Scrutiny of Regulations and result in increased consistency of terminology and alignment of text between provisions; harmonization of text between the French and English versions; the correction of grammatical errors; and clarification to reflect current practices. Additionally, removing the definition of “risk area” does not impact the administration of the AgriInsurance program, as it is aligned with the plain meaning of the term and was therefore redundant.
Implementation, enforcement and service standards
These amendments come into force upon registration.
Contact
Francesco Del Bianco
Director General
Business Risk Management Programs Directorate
Agriculture and Agri-Food Canada
1341 Baseline Road
Ottawa, Ontario
K1A 0C5
Telephone: 613-773-1665
Email: Francesco.delbianco@canada.ca