Christian Farmers Federation of Ontario (Re), 2015 ONAFRAAT 12

Agriculture, Food and Rural Affairs Appeal Tribunal

Appeal: CFFO Re-Accreditation 2015 (RE) Neutral Citation: 2015 ONAFRAAT 12 Statute: Farm Registration and Farm Organizations Funding Act, 1993 Hearing: June 25, 2015 Date of Decision: July 10, 2015 File No.: 2015-12

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 Subsection 4(2) of the Act for renewal of its accreditation.

Before: Glenn Walker, Vice-Chair Marthanne Robson, Vice-Chair Maurice Janisse, Member

Appearances: Lorne Small - President, CFFO Frances Pitkin – Office Manager, CFFO

DECISION OF THE TRIBUNAL

Background

This matter was heard by the Agriculture, Food and Rural Affairs Appeal Tribunal (Tribunal) in Guelph, Ontario on June 25, 2015. The Christian Farmers Federation of Ontario (the CFFO) applied to the Tribunal for renewal of its accreditation as a farm organization pursuant to section 4(2) of the Farm Registration and Farm Organizations Funding Act, 1993 (the Act). The CFFO was last accredited as a farm organization in 2012 for a three- year period commencing December 6, 2012.

Since the CFFO was last accredited, Ontario Regulation 723/93 as amended by Ontario Regulation 363/12 was further amended by Ontario Regulation 292/13 and Ontario Regulation 50/14. Therefore, the new criteria for accreditation and reaccreditation as set out in Ontario Regulation 723/93 and amended by Ontario Regulation 50/14, (Appendix 1) are the criteria that will be used to determine whether the CFFO qualifies for renewal of its accreditation.

Every Registered Farm Business in Ontario is required to pay a prescribed fee of $195 (s.3(2) of the Regulation) to an accredited farm organization (s.21(1) of the Act). Payment is made via Agricorp. The funds are forwarded to the accredited farm organization selected by the registered farm business and a farm business registration (FBR) number is assigned.

Application by the CFFO

The CFFO filed evidence and also provided oral submissions in support of its application. The Tribunal’s findings with respect to the CFFO’s written and oral submissions are outlined below following each of the criteria provided in Ontario Regulation 723/93 as amended by Ontario Regulation 50/14.

5(2) 1. It is incorporated under a general or special Act of the Legislature.

CFFO was incorporated by Letters Patent issued by the Ontario Ministry of Consumer and Commercial Relations under the Corporations Act on June 26, 1991. A copy of the Letters Patent was submitted to the Tribunal as evidence.

The Tribunal is satisfied this criterion has been met.

5(2) 2. Persons sitting on its board of directors have all been elected, except for persons who were appointed to fill a vacancy or in other exceptional circumstances.

CFFO has an elected Board of Directors referred to as the “Executive Board”. CFFO produced a copy of Bylaw #2 which provides for the election of directors in Article III. It also provided a copy of the Notice of the 2014 Annual Convention setting out the nomination and election procedures.

The Tribunal is satisfied this criterion has been met.

5(2) 3. Its purpose is to represent persons carrying on all types of farming businesses.

From its corporate objects contained in the Letters Patent and other evidence provided by CFFO, it is clear that CFFO represents all farming businesses regardless of agricultural commodity.

The Tribunal is satisfied that the CFFO meets this criterion and represents a broad spectrum of farming interests within Ontario.

5(2) 4. The fee required for membership in the farm organization, or for a class of membership in the organization, consists of the payment to the farm organization of the amount that is payable under subsection 21(1) of the Act and prescribed under subsection 3(2).

The current prescribed membership fee for the CFFO is the same as the amount payable for farm business registration. The membership fee is $195.00 plus HST in accordance with the Regulation.

The Tribunal is satisfied this criterion has been met.

5(2) 5. At least 250 farming businesses that hold registration numbers under the Act have,

i. Become supporters of the farm organization, or

ii. In the case of a farm organization that is not accredited, paid a fee of at least $195 to the farm organization.

In 2012 CFFO had 4,035 supporters; in 2013 CFFO had 4,376 supporters and in 2014 CFFO had 4,165 supporters.

The Tribunal is satisfied this criterion has been met.

5(2) 6. The majority of its supporters are farming businesses described in clause (a) of the definition of “supporter” in subsection (1).

In 2012 CFFO had 4,035 supporters; 4,001 farming businesses held registrations under the Act and 34 farming businesses did not hold registrations under the Act.

In 2013 CFFO had 4,376 supporters; 4,349 farming businesses held registrations under the Act and 27 farming businesses did not hold registrations under the Act.

In 2014 CFFO had 4,135 supporters; 4,105 farming businesses held registrations under the Act and 30 farming businesses did not hold registrations under the Act.

The Tribunal is satisfied this criterion has been met.

5(2) 7. It has at least 12 local branches located in Ontario and contributes to its local branches at least 10 percent of the part of its gross revenue for any given year that is received from payments made under section 21 of the Act and is determined before taxes, excluding any refunds that may be paid under subsection 21(8) of the Act.

CFFO has 21 local branches. Starting in the 2015 fiscal year, CFFO will contribute 10% of the gross revenue received from payments made under the Act before taxes and excluding any refunds directly to the local branches by way of a cash payment. CFFO provided a copy of its 2015 budget to support this intention.

For the years 2012 to 2014, CFFO contributed 25% of the gross revenue in two ways: direct contributions to the local branch and by way of services.

The Tribunal is satisfied that this criterion has been met.

5(2) 8. Each local branch of the farm organization meets the following requirements:

i. It represents at least 10 farming businesses described in paragraph 5.

ii. Persons sitting on its board of directors have all been elected, except for persons who were appointed to fill a vacancy or in other exceptional circumstances.

iii. It holds an annual general meeting.

iv. It is entitled to send a representative to any meeting of the farm organization to which local branches are invited to send representatives.

From the evidence submitted CFFO has established that 18 of its 21 local branches have at least 10 farming businesses; hold annual elections for directors of the branch; hold an annual general meeting, and are entitled to send representatives to CFFO’s Provincial Council and the CFFO Annual General Meeting. The Tribunal is satisfied that CFFO has at least 12 local branches that meet the requirements of criterion 5(2) 8.

The Tribunal is satisfied that this criterion has been met.

5(2) 9. It has an established process that allows farming businesses that are supporters of the farm organization and have a registration number under the Act to make submissions to the farm organization on any relevant issue, and that requires the farm organization to consider the submissions and respond.

By-law #2 Article III (D)(4) guarantees the right of members to have their submissions on relevant issues of concern considered and responded to by CFFO Executive Board.

The Tribunal is satisfied this criterion has been met.

5(2) 10. It has entered into a written agreement with the Minister and with other farm organizations to provide special funding to the francophone organization that is eligible for special funding under section 12 or 13 of the Act.

As at the date of the hearing, CFFO was a party to an agreement dated December 2007 with the Minister, the other accredited farm organizations and L’Union Des Cultivateurs Franco-Ontariens. A new agreement is in the process of being signed by the same parties.

The Tribunal is satisfied this criterion has been met.

5(2) 11. It prepares audited financial statements in accordance with subsection (4) and makes them available to the public within 30 days of its annual general meetings and, if the Tribunal has held any hearings under the Act, it submitted a copy of its most recent audited financial statements to the Tribunal before the hearing began.

A copy of CFFO’s audited financial statements for the year ended December 31, 2014 was produced to the Tribunal with the organization’s other material on June 4, 2015. CFFO advised that these statements are posted on its website prior to the Annual General Meeting and submitted to attendees for their approval.

The Tribunal is satisfied this criterion has been met.

5(2) 12. It has developed a written service standard setting out the rules applicable to applications for, and the timing and processing of, refunds under subsection 21(8) of the Act and the service standard is available to the public upon request.

A copy of CFFO’s written service standard for refunds was produced to the Tribunal. It is posted to its website and available in printed and electronic form upon request.

The Tribunal is satisfied this criterion has been met.

5(2) 13. Provides education or training in agricultural matters.

CFFO presented a large amount of documentation to establish that it provides or facilitates education and training in agricultural matters through summits, presentations, periodicals and its website.

The Tribunal is satisfied this criterion has been met.

5(2) 14. Provides advice and analysis to governments, administrative tribunals or advisory bodies concerning agricultural issues and the development of programs or policies that are of interest to persons carrying on farming businesses.

Through the production of documentation consisting of letters, fact sheets, submissions etc., CFFO has established that it is an active advocate for persons carrying on farming businesses concerning agricultural issues.

The Tribunal is satisfied this criterion has been met.

Overall Finding

Based on the evidence filed and the submissions made, the Tribunal finds the CFFO met all the prescribed criteria for re-accreditation as a farm organization.

Order

Based on the above stated findings, it is the decision of the Tribunal that the CFFO be re-accredited as a farm organization under the Farm Registration and Farm Organizations Funding Act, 1993 for a period of three years commencing December 6, 2015.

Dated at Ridgetown, Ontario, this 10^th day of July, 2015

Appendix 1

5. (1) In this section,

“supporter”, with respect to a farm organization, means,

(a) any farming business that has made a payment under section 21 (1) of the Act to the organization and has not requested a refund of the payment under subsection 21 (8) of the Act, whether or not the farming business is a member of the organization, and

(b) any person or entity that is not a farming business required to file a farming business registration form under section 2 of the Act and that is a member of the organization. O. Reg. 50/14, s. 5 (1).

(2) A farm organization qualifies for accreditation if it meets the following criteria:

1. It is incorporated under a general or special Act of the Legislature.

2. Persons sitting on its board of directors have all been elected, except for persons who were appointed to fill a vacancy or in other exceptional circumstances.

3. Its purpose is to represent persons carrying on all types of farming businesses and it is willing to represent a farming business no matter what types of crops, livestock, poultry or other agricultural products may be produced by the farming business.

4. The fee required for membership in the farm organization, or for a class of membership in the organization, consists of the payment to the farm organization of the amount that is payable under subsection 21 (1) of the Act and prescribed under subsection 3 (2).

5. At least 250 farming businesses that hold registration numbers under the Act have,

i. become supporters of the farm organization, or

ii. in the case of a farm organization that is not accredited, paid a fee of at least $195 to the farm organization.

6. The majority of its supporters are farming businesses described in clause (a) of the definition of “supporter” in subsection (1).

7. It has at least 12 local branches located in Ontario and contributes to its local branches at least 10 percent of the part of its gross revenue for any given year that is received from payments made under section 21 of the Act and is determined before taxes, excluding any refunds that may be paid under subsection 21 (8) of the Act.

8. Each local branch of the farm organization meets the following requirements:

i. It represents at least 10 farming businesses described in paragraph 5.

ii. Persons sitting on its board of directors have all been elected, except for persons who were appointed to fill a vacancy or in other exceptional circumstances.

iii. It holds an annual general meeting.

iv. It is entitled to send a representative to any meeting of the farm organization to which local branches are invited to send representatives.

9. It has an established process that allows farming businesses that are supporters of the farm organization and have a registration number under the Act to make submissions to the farm organization on any relevant issue, and that requires the farm organization to consider the submissions and respond.

10. Subject to subsection (3), it has entered into a written agreement with the Minister and with other farm organizations to provide special funding to the francophone organization that is eligible for special funding under section 12 or 13 of the Act.

11. It prepares audited financial statements in accordance with subsection (4) and makes them available to the public within 30 days of its annual general meetings and, if the Tribunal has held any hearings under the Act, it submitted a copy of its most recent audited financial statements to the Tribunal before the hearing began.

12. In the case of an accredited farm organization, it has developed a written service standard setting out the rules applicable to applications for, and the timing and processing of, refunds under subsection 21 (8) of the Act and the service standard is available to the public upon request.

13. Provides education or training in agricultural matters.

14. Provides advice and analysis to governments, administrative tribunals or advisory bodies concerning agricultural issues and the development of programs or policies that are of interest to persons carrying on farming businesses. O. Reg. 50/14, s. 5 (1).

3. The requirement to enter into an agreement described in paragraph 10 of subsection (2) does not apply to a farm organization if,

(a) the farm organization is an accredited organization and has agreed in writing to enter into an agreement referred to in paragraph 10 of subsection (2) before July 1, 2015; or

(b) the farm organization is not an accredited organization at the time it applies to the Tribunal for accreditation and has agreed in writing to enter into an agreement referred to in paragraph 10 of subsection (2) promptly upon receiving its accreditation. O. Reg. 50/14, s. 5 (1).

Note: On July 1, 2015, subsection (3) is revoked and the following substituted: (See: O. Reg. 50/14, ss. 5 (2), 8 (3))

(3) The requirement to enter into an agreement described in paragraph 10 of subsection (2) does not apply to a farm organization if that farm organization,

(a) is not accredited at the time it applies to the Tribunal for accreditation; and

(b) has agreed in writing to enter into an agreement described in paragraph 10 of subsection (2) promptly upon receiving its accreditation. O. Reg. 50/14, s. 5 (2).

(4) An audited financial statement shall include:

1. The total amount received by the farm organization under subsection 21 (3) of the Act in the year.

2. The number of refunds paid by the farm organization under subsection 21 (8) of the Act and the total amount of those refunds.

3. The amount contributed by the farm organization to its local branches.

4. Financial statements and an auditor’s report prepared by an auditor in accordance with generally accepted auditing standards. O. Reg. 50/14, s. 5 (1).