Agriculture, Food and Rural Affairs Appeal Tribunal 1 Stone Road West Guelph ON N1G 4Y2 Tel: (519) 826-3433, Fax: (519) 826-4232 Email: appeals.tribunal.omafra@ontario.ca

Tribunal d’appel de l’agriculture, de l’alimentation et des affaires rurales 1 Stone Road West Guelph ON N1G 4Y2 Tél.: (519) 826-3433, Téléc.: (519) 826-4232 Email: appeals.tribunal.omafra@ontario.ca

AGRICULTURE, FOOD AND RURAL AFFAIRS APPEAL TRIBUNAL

APPEAL: NFU-O Re-Accreditation 2015

NFU-O Re-Accreditation 2015 (RE) 2015ONAFRAAT13

STATUTE: Farm Registration and Farm Organizations Funding Act, 1993

HEARING: June 26, 2015

DATE OF DECISION: July 10, 2015

2015-13

NEUTRAL CITATION: 2015 ONAFRAAT 13

NFU-O RE-ACCREDITATION 2015

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 National Farmers Union - Ontario (NFU-O) under Subsection 4(2) of the Act for renewal of its accreditation.

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

Appearances: Karen Eatwell - President, NFU-O Sarah Bakker – General Manager, NFU-O

DECISION OF THE TRIBUNAL

Background

This matter was heard by the Agriculture, Food and Rural Affairs Appeal Tribunal (Tribunal) in Guelph, Ontario on June 26, 2015. The National Farmers Union - Ontario (the NFU-O) 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 NFU-O was last accredited as a farm organization in 2013 for a three- year period commencing December 19, 2012.

Since the NFU-O 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 NFU-O 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 NFU-O

The NFU-O filed evidence and also provided oral submissions in support of its application. Following the hearing, the NFU-O filed additional documents, at the request of the Tribunal, to complete its submissions. The Tribunal’s findings with respect to the NFU-O’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.

The NFU-O was incorporated by Letters Patent under the Corporations Act (Ontario) dated May 9, 2002.

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.

The By-Laws of the NFU-O provide for a board of eight directors, called the Regional Council, elected by delegates at the Annual General Meeting (AGM). The delegates are elected by Locals (local branches) from members of the organization. The minutes of the AGM held March 7, 2015 record the election (by acclamation in all cases) of Regional Council Members. The materials filed list the names of seven directors, with one vacancy. There is provision for the Regional Council to appoint a director in the case of a vacancy to serve until the next AGM.

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.

The NFU-O By-laws set out the objects of the organization “to represent persons carrying on farming businesses in Ontario”. AgriCorp data shows that NFU-O members produce over 75 different agricultural products.

The Tribunal is satisfied that the NFU-O 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).

NFU-O By-law 4 (3) provides that members shall pay a minimum annual membership fee set out in the Regulation plus applicable taxes. The financial statements (2014) filed with the Tribunal set out the number of registration fees ($195) received and refunded.

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.

On May 25, 2015 the NFU-O had 1032 FBR supporters and 38 direct members (non FBR supporters). The NFU-O website describes the process for transferring the FBR fee to a membership, by notifying the organization.

The Tribunal is satisfied these criteria have 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).

The audited financial statements show that for the 2013-2014 fiscal year, the NFU-O had 1,342 FBR supporters and 50 direct memberships. In 2013-2014, supporters made up 96% of the supporters in the NFU-O.

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.

The NFU-O has 19 local branches. The 2013-2014 Financial Statements show registration fees of $262,000, and $68,000 distributed to locals, that is 26 per cent of revenues (numbers rounded). The membership voted to maintain a 25% allocation to local branches at its 2014 AGM, notwithstanding the amendment to the Regulation in 2014 that now requires only a 10% distribution to local branches.

The Tribunal is satisfied 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.

The NFU-O submitted 10 FBR numbers belonging to each of the 19 local branches, a list of all the executives from the local branches and the dates of the 19 local AGMs. The By-Laws provide that each local shall hold an AGM at which local executives are elected, and describes the process for local delegates to attend the organization’s AGM. As an example, the NFU-O submitted a notice of one local AGM published in the newsletter and sent by email to members, as well as the minutes arising.

The Tribunal is satisfied these criteria have 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. The process is described in the By-Laws and the NFU-O “Service Standard for Making Submissions” adopted August 15, 2014. The NFU-O provided examples of this process in operation.

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.

The NFU-O is party to an agreement dated December 2007 (which was still in effect as of the date of this hearing), together with the Minister of Agriculture, Food and Rural Affairs and the other accredited farm organizations, to provide special funding to l’Union des cultivateurs franco-ontariens (UCFO), the francophone organization eligible for special funding under the Act. In addition, NFU-O submitted a letter of commitment to the Ministry dated November 29, 2012, outlining their commitment to enter into a new funding agreement. A new agreement was signed by all parties as of the date of this hearing.

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.

The NFU-O submitted its most recent audited financial statements (year ending September 30, 2014). The financial statements were posted on the NFU-O website within 30 days of its 2014 and 2015 AGMs. At the time of the AGM at which the 2011-2012 audited financial statements were approved, the NFU-O was not an accredited farm organization.

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.

The NFU-O approved a “Service Standard for issuing Refunds” under the Act on October 17, 2014. The Tribunal is satisfied this criterion has been met.

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

The NFU-O submitted several notices of public and member education events, copies of its newsletter “Rural Voice”, and various press releases addressing agricultural issues such as the announced closure of Kemptville College and Neonicotinoid licensing issues.

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. The NFU-O provided copies of submissions and letters to the government on environmental issues, the chicken industry, pollinator health issues and proposed legislation/regulation, to name a few.

The Tribunal is satisfied this criterion has been met.

Overall Finding

Based on the evidence filed and the submissions made, the Tribunal finds the NFU-O 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 NFU-O 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 19, 2015.

Dated at Ottawa, 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).