Agriculture, Food and Rural Affairs Appeal Tribunal 1 Stone 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: AFRAAT@ontario.ca
Guelph (Ontario) N1G 4Y2 Tél.: (519) 826-3433, Téléc.: (519) 826-4232 Courriel: AFRAAT@ontario.ca
AGRICULTURE, FOOD AND RURAL AFFAIRS APPEAL TRIBUNAL
APPEAL:
OFA Re-Accreditation 2018
OFA Re-Accreditation 2018 (RE) 2018 ONAFRAAT 14
STATUTE:
Farm Registration and Farm Organizations Funding Act, 1993
HEARING:
September 28, 2018
DATE OF DECISION:
October 24, 2018
2018-14
NEUTRAL CITATION:
2018 ONAFRAAT 14
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 Ontario Federation of Agriculture under Subsection 4(2) of the Act for renewal of its accreditation.
Before:
John O’Kane, Vice-Chair; Sarah Judd, Member and Lee Holling, Member
Appearances:
Neil Currie – General Manager, Ontario Federation of Agriculture
Jon Lazarus – Director of Finance and Administration, Ontario Federation of Agriculture
RE-ACCREDITATION 2018
Background
The Farm Registration and Farm Organizations Funding Act, 1993 (the “Act”) created a process for accreditation and renewal of accreditation for organizations representing farmers in the province. Generally, a farm organization can apply for renewal under the Act every three years.
In addition, under the Act farm businesses can apply for registration and obtain a “Farm Business Registration” (“FBR”) number which is required for farming properties to receive beneficial property tax treatment. When a farm business applies for an FBR number it is required to pay a prescribed fee to one of the accredited farming organizations.
When the Act was originally enacted in 1993, it provided for two “deemed” farming organizations. The Applicant Ontario Federation of Agriculture (“OFA”) was one of the two originally “deemed” farming organizations.
Since 1993, the OFA has successfully applied for renewal of its accreditation each successive three-year cycle.
The renewal of accreditation process comes before the Tribunal under the Act as it is prescribed that the Tribunal “shall hold a hearing before determining whether” an organization’s accreditation is renewed. The Act provides that if the Tribunal determines that a farm organization meets the “prescribed criteria”, the Tribunal “shall, by order, accredit” the organization. The prescribed criteria have been established in Ontario Regulation 723/93 (“regulation”).
The OFA is a statutory party to the application hearing before the Tribunal and the Minister of Agriculture, Food and Rural Affairs (the “Minister”) and the other accredited farm organizations in the province all receive notice of any application for accreditation or re-accreditation under the Act. The other farm organizations also have a statutory right to attend the accreditation hearing and make submissions.
As these reasons explain, the OFA has satisfied the prescribed criteria and accordingly, the Tribunal will order the renewal of the OFA’s accreditation for a further three-year period.
The Conditions, Criteria, Evidence and Findings
The submissions and evidence for the OFA were provided by OFA General Manager Neil Currie and OFA Director of Finance and Administration Jon Lazarus.
No other party entitled to notice of the application for re-accreditation attended or participated in the accreditation hearing.
None of the OFA evidence was challenged.
On July 10, 2015, the Tribunal issued an order1 that the OFA was “re-accredited as a farm organization” under the Act, “for a period of three years commencing December 6, 2015”.
Subsection 4(2) of the Act requires a farm organization to apply for renewal of its accreditation “during the period prescribed”.
The criteria for re-accreditation are set out in sections 5 and 6 of Ontario Regulation 723/93.
Section 6 of Ontario Regulation 723/93 established the “prescribed period” for renewal applications as “no sooner than nine months and no later than six months before the expiry of its accreditation”.
Therefore, based on the previous re-accreditation order of the Tribunal, the OFA’s window to apply for renewal of its accreditation is from March 6, 2018 to June 6, 2018.
The OFA applied to the Tribunal to renew its accreditation on April 6, 2018 and accordingly the Tribunal determines that criterion satisfied.
The OFA submitted copies of its September 20, 1959 Letters Patent issued by the Province of Ontario and based on that evidence the Tribunal determined that the OFA satisfies the incorporated status criterion.
The OFA submitted copies of its Elections Policy and election results and based on that evidence the Tribunal determined that the OFA satisfies the democratic board election criterion.
The OFA’s Letters Patent set out in broad terms its purpose to represent the interests of all farmers. That broadly worded purpose is further animated in the OFA’s corporate mission/values statement submitted to the Tribunal. Based on those two documents, the Tribunal determined that the OFA satisfies the corporate purpose criterion.
The OFA submitted excerpts from its By-Law 16 related to membership in the OFA which confirmed that its membership fee is $225 plus HST. Based on that evidence, the Tribunal determined that the OFA satisfies the prescribed membership fee criterion.
The OFA submitted supporter/membership data showing that it has approximately 37,148 farm businesses as OFA supporters/members. It also included as Exhibit 5.2, a partial supporter/member list. Since that list contained confidential personal information, the OFA applied to the Tribunal under Rule 23 that the Tribunal make an order restricting public access to Exhibit 5.2. On review of the supporter/member list, the Tribunal was satisfied that it contained “personal information” and the private interests of those listed outweighs the public interest. Accordingly, in these circumstances, the Tribunal orders that public access to Exhibit 5.2 will be restricted. Based on the supporter/member list evidence, the Tribunal determined that the OFA satisfies the criteria of at least 250 supporters/members holding an FBR number.
The OFA submitted its membership by-law that created three classes of membership. The OFA by-laws recognize both supporters and members. Both pay the prescribed fee but members sign a formal membership agreement. The OFA submitted data confirming that of its 37,148 farm business supporters/members, 35,650 have signed the membership agreement. Based on all that evidence, the Tribunal determined that the OFA satisfies the criterion that a majority of its supporters are farming businesses described in paragraph 6 in subsection 5(2) of the regulation.
The OFA submitted a list of its local branches throughout the province of which there are 52 branches. The OFA also submitted its most recently audited Financial Statements, which confirmed that it contributed over $1.1 million to its local branches in 2017. That sum is greater than 10% of its 2017 gross revenue of approximately $7.1 million. Based on that evidence, the Tribunal determined that the OFA satisfies the greater than 12 branch and the branch funding criteria.
The OFA submitted signed declarations from each of their 52 local branches confirming that each branch represents at least ten farming businesses, that the local branch board is elected, that the local branch holds an annual general meeting and that the local branch is entitled to send representation to any meeting of the OFA in which its local branches are invited to send representatives. Based on that evidence, the Tribunal determined that the OFA satisfies the democratic local branch criteria.
The OFA submitted testimony and documents illustrating how its supporters/members have opportunity for input on relevant issues via its Resolutions Policy and how the OFA considers and responds to such input. Based on that evidence, the Tribunal determined that the OFA satisfies the supporter/member input processes criteria.
The OFA submitted evidence that it has a written agreement with the Minister and the other accredited farm organizations to provide special funding to the Francophone farm organization entitled to special funding under the Act. The OFA produced a copy of the December 2007 multi-party agreement as well as its audited Financial Statements that reflect the amount of funds directed to the Francophone farm organization entitled to the special funding. Based on that evidence, the Tribunal determined that the OFA satisfies the Francophone agreement/funding criteria.
Prior to the re-accreditation hearing, the OFA submitted to the Tribunal a copy of its most recent audited Financial Statements. The testimony of the OFA confirmed that it publicly publishes its annual audited Financial Statements on its website within 30 days of its annual general meeting. Based on that evidence, the Tribunal determined that the OFA satisfies the audited Financial Statement criteria.
The OFA submitted copies of its service standards and refund policy. The OFA provided testimony that the policies are available to the public on request. Based on that evidence, the Tribunal determined that the OFA satisfied the service standards/refund criteria.
The OFA submitted multiple illustrations of its various education and training materials which are available in both hard copy and internet-based materials. The education and training materials are clearly focused on education and training of farming relevant topics that include: Farm ATV/ORV Use; Abandoned Railway Rights-of-Way; the Line Fences Act; Nuisance Wildlife – What Can Farmers Do?; Farm Property Assessment Notice Information. Based on that evidence, the Tribunal determined that the OFA satisfied the education/training criterion.
The OFA Mission Statement reflects the organization’s advocacy initiatives to promote farming. The OFA submitted multiple copies of a variety if its advice and advocacy materials provided to governments, administrative tribunals and advisory bodies about agricultural issues. The advice and advocacy materials addressed topics that include: OFA Response to OMAFRA Agricultural Impact Assessment Guidance Document; OFA submission to OMAFRA on Farms Forever Discussion Paper; OFA submission to MOECC Environmental Policy Branch on Excess Soil Management Regulatory Policy. Based on that evidence, the Tribunal determined that the OFA satisfies the public advocacy/advice criterion.
The OFA’s audited Financial Statements filed with the Tribunal prior to the hearing reflect that the auditors prepared the statements in accordance with generally accepted auditing standards and, among other things, the total payments the OFA received and the total amount of refunds, both pursuant to Section 21 of the Act, and the amounts contributed to the local OFA branches. Based on that evidence, the Tribunal determined that the OFA satisfied the Financial Statement criterion.
Decisions and Reasons
Based on all the uncontradicted oral evidence and the uncontroverted documentary evidence, the Tribunal determined that the OFA satisfies all the prescribed re-accreditation criteria under the Act and Ontario Regulation 723/93 and accordingly, the Tribunal orders the OFA’s accreditation renewed for three years commencing December 6, 2018.
Dated in Collingwood, Ontario, this 24th day of October, 2018.
Appendix 1
Farm Registration and Farm Organizations Funding Act, 1993 S.O. 1993, C. 21
- (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:
It is incorporated under a general or special Act of the Legislature.
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.
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.
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).
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.
The majority of its supporters are farming businesses described in clause (a) of the definition of “supporter” in subsection (1).
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.
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.
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.
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.
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.
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.
Provides education or training in agricultural matters.
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); O. Reg. 490/17, s. 5.
(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:
The total amount received by the farm organization under subsection 21 (3) of the Act in the year.
The number of refunds paid by the farm organization under subsection 21 (8) of the Act and the total amount of those refunds.
The amount contributed by the farm organization to its local branches.
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).
An accredited farm organization may apply for renewal of its accreditation only during the period that is no sooner than nine months and no later than six months before the expiry of its accreditation. O. Reg. 723/93, s. 6.
Revoked: O. Reg. 490/17, s. 6.
(1) Subject to the other provisions of this section, a francophone organization representing farmers in Ontario may be eligible for special funding if, in addition to meeting the criteria set out in clauses 12 (a) and (b) of the Act, it meets the following criteria:
It promotes knowledge of agriculture and agricultural issues amongst francophones in agricultural and rural areas of Ontario.
It 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 francophones carrying on farming businesses in Ontario.
It provides education or training in respect of agricultural matters or provides information on obtaining such education or training to francophones carrying on farming businesses in Ontario.
It plans, promotes or implements or assists in planning, promoting or implementing economic development projects in agricultural and rural areas of Ontario.
It maintains a liaison with the accredited organizations and other francophone organizations representing farmers.
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.
It prepares audited financial statements annually in accordance with subsection (2) 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.
Revoked: O. Reg. 50/14, s. 6 (1).
It is incorporated under a general or special Act of the Legislature.
It has at least forty members who,
i. carry on a farming business in Ontario, and
ii. have paid the membership fee.
- It has at least twenty-one members who carry on a farming business for which there is a current farming business registration. O. Reg. 723/93, s. 8 (1); O. Reg. 442/09, s. 3; O. Reg. 50/14, s. 6 (1).
(2) An audited financial statement shall include:
The total amount of special funding received by the francophone organization in the year.
Financial statements and an auditor’s report prepared by an auditor in accordance with generally accepted auditing standards.
The number of members in the organization. O. Reg. 50/14, s. 6 (2).
A francophone organization eligible for special funding may apply for renewal of its eligibility only during the period that is no sooner than nine months and no later than six months before the expiry of its eligibility. O. Reg. 723/93, s. 9.
In the Act and this Regulation,
“special funding” means the funding accredited organizations have agreed to pay to the eligible francophone organization. O. Reg. 723/93, s. 10.
For the purpose of subsection 21 (7) of the Act, the time prescribed for applying for a refund is the ninety-day period starting with the day the registration form is required to be filed. O. Reg. 723/93, s. 11.
For the purpose of subsection 11 (7) of the Act, the time prescribed for resubmitting a payment is the thirty-day period starting with the day the Ministry returns the first payment pursuant to subsection 11 (6) of the Act. O. Reg. 723/93, s. 12.
In addition to the information that the Minister must provide under subsection 21 (3) of the Act, the Minister may, under section 3 of the Act, for the purpose of promoting the efficient administration of the Act, provide to the appropriate farm organizations the fax numbers and e-mail addresses provided in the farming business registration forms of those who have provided payments under subsection 21 (1) of the Act. O. Reg. 42/99, s. 2.