Agriculture, Food and Rural Affairs

Appeal Tribunal

1Stone Road West

Tribunal d’appel de l’agriculture, de l’alimentation et des affaires rurales

1, Stone Road West

Guelph, (Ontario) N1G 4Y2

Tel: (519) 826-3433, Fax: (519) 826-4232

Email: appeals.tribunal.omafra@ontario.ca

Guelph (Ontario) N1G 4Y2

Tél.: (519) 826-3433, Téléc.: (519) 826-4232

Courriel: appeals.tribunal.omafra@ontario.ca

AGRICULTURE, FOOD AND RURAL AFFAIRS APPEAL TRIBUNAL

APPEAL:

Christian Farmers Federation of Ontario Reaccreditation - Interim Order

CFFO Reaccreditation - Interim Order 2011 ONAFRAAT 17

STATUTE:

Farm Registration and Farm Organizations Funding Act, 1993

HEARING:

June 24, 2011

DATE OF DECISION:

June 29, 2011

2011-17

NEUTRAL CITATION:

2011 ONAFRAAT 17

INTERIM ORDER OF THE TRIBUNAL

IN THE MATTER OF: SECTIONS 4 AND 5 OF THE FARM REGISTRATION AND FARM ORGANIZATIONS FUNDING ACT, 1993.

AND IN THE MATTER OF: An application to the Agriculture, Food and Rural Affairs Appeal Tribunal by the Christian Farmers Federation of Ontario (CFFO) under Section 4(2) of the Act for renewal of its accreditation under the Act.

Before:

Kirk Walstedt, Chair; Mary Field, Member; Jane Sadler Richards, Member

Appearances:

Henry Stevens – Director, CFFO

Lorne Small – Director, CFFO

Gerald Poechman – Director, CFFO

John Clement – General Manager, CFFO

Background

By virtue of section 4(2) of the Farm Registration and Farm Organizations Funding Act, 1993, “Any accredited farm organization may apply to the Tribunal for a renewal of its accreditation if it does so during the period prescribed.” Pursuant to Section 5 of Ontario Regulation 723/93 (“Regulation”), a farm organization qualifies for accreditation if it meets specific criteria.

This matter was heard on June 24, 2011 at the Tribunal offices at 1 Stone Rd W., Guelph, Ontario. At the end of the hearing, the panel voiced concerns with the treatment of the payment to be provided to the Ministry under section 21(1) of the Act as a membership fee.

Three reasons were provided for those concerns. They are as follows:

1. Section 21(10) of the Act states that “payment under this section does not confer

membership in the farm organization”.

2. The different language used in the Regulation and the Act describing what appears to be two separate fees. Section 21(1) under the Act states, “Every person required to file an annual farming business registration form with the Ministry must, when filing the form, provide to the Ministry payment of the prescribed amount payable to an accredited farm organization.” Section 3(2) of the Regulation states, “The amount of the payment to be provided to the Ministry under subsection 21(1) of the Act is $195.”

A membership fee, on the other hand, is clearly referred to in the following sections of the Regulation: Section 5(1) states, “Subject to the other provisions of this section, a farm organization qualifies for accreditation if it meets the following criteria:

1. It has at least 250 members who,

i. carry on a farming business in Ontario, and

ii. have paid the membership fee.

3. It has an annual membership fee, including applicable taxes, of at least $195

for each member.

12. It contributes to the local affiliates referred to in paragraph 11 an amount that equals or exceeds 25 per cent of,

ii. in the case of a farm organization that is accredited, the amount that is obtained in the most recent completed fiscal year under subsection 21(3) of the Act for which no refund was given under subsection 21(5) of the Act less the amount that would be payable in taxes if this amount were being charged as a membership fee.

Section 5(4) states, “A farm organization does not meet the criterion prescribed in paragraph 11 of subsection (1) unless each local affiliate,

(a) has at least ten members, each of whom has paid the membership fee, carrying on farming businesses in the area concerned;”

3. The apparent different tax treatment of the amount of the payment to be provided to

the Ministry under section 21(1) of the Act and “membership fees” in sections 5(1) 3 and 5(1)12 of the Regulation.

Additionally, the panel notes that an organization seeking to be accredited for the first time could not have any farm business registration monies designated to it by the express language of section 21(1) of the Act, but still would need to meet the criteria in the regulation, including having at least 250 members who carry on a farming business in Ontario and who have paid a membership fee.

The panel notes that this issue was not addressed in the previous Tribunal reaccreditation decision. The panel will not be making a final decision at this time. However, it will invite submissions as to the proper interpretation of the Act and Regulation regarding the payment to be provided to the Ministry under section 21(1) of the Act and membership fees.

Order of the Tribunal

Therefore, the Tribunal orders that:

1. By Friday, July 29, 2011 the Christian Farmers Federation of Ontario, the Ontario Federation of Agriculture, the National Farmers Union – Ontario, and the Ministry, including its agencies, file with the Tribunal and serve on each other their submissions, if any, regarding the above noted concerns.

2. This panel shall remain seized of this matter.