Agriculture, Food and Rural Affairs Appeal Tribunal
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 Email: AFRAAT@ontario.ca
2023 ONAFRAAT 10
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 under Subsection 7(1) of the Act for renewal of its accreditation
AND IN THE MATTER OF an electronic hearing to be held pursuant to Rule 18 of the Tribunal’s Rules of Procedure.
HEARD: June 22, 2023 by video conference
Before: Brandi Neil, Vice-Chair, Dave Fawcett, Member, and Dave Stevens, Member
Appearances:
Frances Pitkin: Office Manager, CFFO
Tom Tavani: General Manager
Suzanne Armstrong, Director of Policy and Research
DECISION
Background
1The Farm Registration and Farm Organizations Funding Act, 1993 (the “Act”) sets out the process for accreditation and renewal of accreditation for organizations representing farmers in the province. Previously, a farm organization could apply for renewal under the Act every three years.
2Under 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.
3The Christian Farmers Federation of Ontario (“CFFO”) was last accredited as a farm organization on October 26, 2018 for a three-year period commencing on December 6, 2018.
5In December 2020, Ontario Regulation 783/20 (the “Regulation”) came into force and increased the effective period of the accreditation from three to five years.
6The Act prescribes that the Tribunal “hold a hearing before determining whether” an organization’s accreditation is renewed. The Act provides that if the Tribunal determines the farm organization meets the “prescribed criteria”, the Tribunal “shall, by order, accredit” the organization. The prescribed criteria are set out in the Regulation.
7The organization seeking renewal is a party to the hearing further to subsection 5(3) of the Act. The Act provides in subsections 5(2) and 8(2) that the following persons/organizations are entitled to receive notice of an application for renewal by a farm organization and that they may make submissions in the accreditation hearing:
The Minister.
The Director.
Each accredited farm organization.
The francophone organization that is receiving special funding under the Act.
8As this decision will explain, the CFFO has met the criteria in the Regulation and accordingly the Tribunal will order the renewal of CFFO accreditation for a further five-year period.
The Criteria, Evidence and Findings
9The submissions and evidence for CFFO were provided by CFFO Office Manager, Frances Pitkin. Also present from the CFFO was Tom Tavani, General Manager and
Suzanne Armstrong, Director of Policy and Research but they did not provide any testimony.
10Both the Ontario Federation of Agriculture and the National Farm Union – Ontario had representatives in attendance but as observers only. Neither of those farm organizations made submissions.
11On October 26, 2018, the Tribunal issued an order that effective December 6, 2018, the CFFO was re-accredited as a farm organization under the Act1. Section 12 of the Regulation provides that the accreditation expires on September 1, in the fifth year after the order was issued. That section also states that the application for renewal must be no earlier than nine months from the accreditation expiration and no later than six months from the expiration. The CFFO properly applied on February 15, 2023, within the required time frame.
12The Criteria for the renewal of the accreditation are set out in Subsection 7(2) of the Regulation. I have attached Section 7 of the Regulation as Appendix 1 to this decision. The requirements for the audited financial statements are set out in subsection 7(4). I will go through each item from subsection 7(2) and 7(4).
13The CFFO entered into evidence a copy of its June 26, 1991, Letters Patent issued by the Province of Ontario. The Tribunal is satisfied they meet the incorporated status criterion.
14The farm organization is required to represent persons carrying on all types of farming businesses no matter what types of crops, livestock, poultry or other agricultural products the farming business produces. They demonstrated compliance with this requirement through their By-Law 1 that was entered as an exhibit and through a table they prepared on the different types of farm businesses of their supporters. The table was based on a questionnaire mailed to supporters at the time of registrations and based on the commodities reported by over 3900 farming businesses.
15The farm organization must provide education or training in agricultural matters. The CFFO gave evidence that set out the various forums they use to provide education to their supporters. They have educational speakers at their annual general meeting each year. Frances Pitkin also explained the CFFO Policy Tour which is a chance for staff to connect with their District associations so supporters can learn about current issues and the Federations policy positions. They are also used to determine what is important to the supporters at a grassroots level. In 2021 they also started doing Pop-Up Policy Meetings virtually to focus on key issues facing agriculture such as: Accessing Large Animal Veterinarians, Transportation Plan for Northern Ontario, Growing size of the Greenbelt, Greater Golden Horseshoe Transportation Plan. The CFFO Provincial Council meetings happen four times a year and are comprised of twenty-five to thirty family farm entrepreneurs to analyze issues of the day. Examples of speakers from a couple of the Council meetings were provided.
16The CFFO also gave evidence that education also happens at the District Association level. The District Associations invite speakers to local meetings on a wide range of topics including MPAC, Farmers for Climate Solutions and Safe Families & Why Not Missions.
17There was further evidence given regarding the partnership CFFO entered into with the National Farmers Mental Health Alliance in 2022. This has resulted in the Christian Farmers Wellness Program in 2022 and 2023 as well as articles in the CFFO magazine the Steward that is published twice a year. The magazine also contains articles on policy updates and issues affecting the farm community. In addition to the magazine, the CFFO also started an e-news email publication in 2018 that goes out to their farm businesses previously twelve times a year and in 2023 twenty-four times a year. They also maintain their website which provides information on policies and activities for both supporters and the general public.
18Documentary evidence was filed in evidence on all of the education areas discussed by Ms. Pitkin. It was clear from oral evidence and all the documentary evidence filed that the CFFO excels in the educational and training component of the criterion.
19The Regulation requires farm organizations to provide advice and analysis to governments, administrative tribunals or advisory bodies concerning agricultural issues and development of programs and policies relevant to farming businesses. The CFFO has satisfied this criterion. They have provided advice, analysis and commentary on a wide variety of agricultural issues including: Bill 136, An Act to enact the Provincial Animal Welfare Services Act, 2019, Drainage Act, Land Use Compatibility Guidelines, Review of A Place to Grow and Provincial Policy Statement and the creation of programs or policies that are of interest to persons carrying on farming businesses. The CFFO demonstrated compliance with this condition through the oral testimony and filing in evidence samples of their policies and submissions. They also gave evidence about their involvement in the 2022 provincial election where they sent letters and position statements on various issues to their district leaders so they could address them with local candidates. The CFFO agenda for the election focused mainly on farmland preservation, environmental stewardship and agri-food sector success. They provided their district leaders with an “Election Toolkit” and CFFO Briefing Notes with 10 Questions for Candidates. These were entered into evidence. They issue commentaries that are sent out to members, politicians, partners and farm media via an email blast and posted on their website. Ms. Pitkin explained that these commentaries offer both analysis and advice.
20The CFFO testified that in 2022 they had 3843 supporters or farming businesses that held registrations under the Act, and in 2023 they had over 3600. They testified that these supporters all have Farm Business Registration Numbers and chose the CFFO as their organization. This makes up 99% of their supporters. Ms. Pitkin explained that there are additional non-Farm Business Registrants that are personal memberships, mostly retired farmers. Based on this evidence, the CFFO satisfies both criteria of at least 250 supporters members holding a Farm Business Registration number and the majority of its supporters are persons described in the Regulation subsection 7(1)(a).
21The Regulation sets out the accredited farm organization fee for each year and for March 1, 2022 is $255 plus hst. The CFFO testified that their membership fee for Farm Business Registrants or Individual Farm Members are the same as the fee prescribed in the Regulation as evidenced in the following documents that were filed: their 2019 and 2023 Annual Meeting minutes that include the resolution to adopt the membership fee, a sample receipt of payment through the Farm Business Registration Program, the Farm Business Registration Update Form and the Personal Membership application form. The CFFO is in compliance with the membership fee requirement.
22Frances Pitkin testified and submitted documentary evidence showing how its supporters are given the opportunity for input on relevant issues via its resolution policy and how the CFFO considers and responds to such input. The CFFO has a process where individual members can submit relevant issue to their District Association as well as make submissions to the CFFO’s ad hoc committees, the Provincial Council or the Federation’s Board of Directors. After the submissions are made resolutions can be drafted and forwarded to either the CFFO’s Board of Directors or its Provincial Council for consideration. She also testified that the CFFO will also still take phone call submissions. The Local Issues Report Form is available at every meeting and given to all new supporters and can be submitted by mail or email. This document along with 3 example submissions were entered into evidence. Based on that evidence the CFFO has satisfied the supporter input process requirement.
23The CFFO 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 (hereinafter “UCFO”) entitled to special funding under the Act. The CFFO produced a copy of the December 2015 multi-party agreement providing for funding to the UCFO from the CFFO (and other farm organizations). They also submitted into evidence page 9 from the Notes to the Financial Statements from the 2022 Audited Financial Statements, demonstrating a payment to the UCFO in the amount of $13,934 in 2022. Based on that evidence, the Tribunal determined that the CFFO satisfies the Francophone agreement/funding criterion. However, it is unclear exactly where the amount paid to the UCFO is reflected in their actual expense statement. In the future it would be wise if this payment was itemized in their expenses.
24The CFFO submitted a list of its 21 branches throughout the province, all of which had more than 10 active Farm Business Registrants. The smallest branch still had 17 farming businesses. They also submitted a map of the CFFO’s local branches. The evidence submitted demonstrates the CFFO exceeds the Regulation requirement of 12 local branches in Ontario that represent at least 10 farming businesses.
25The CFFO testified they give 10 percent of gross revenue to local branches. They entered into evidence copies of their 2019, 2020, 2021, 2023 budgets that demonstrates the allocation of 10 percent of their gross Farm Business Registration revenue to local branches. They also submitted a page of their 2022 Audited Financial Statement and corresponding not on page 11 that shows the mount of funding paid to the CFFO’s local branches in the 2021 and 20222 years. Based on this evidence the Tribunal is satisfied that the CFFO contributes 10 per cent of its annual gross income to the local branches.
26Section 7(2)12 of the Regulation requires that the CFFO has an arrangement or agreement with its local branches that has provisions regarding five specified areas set out in the appendix. The CFFO testified that in 2023 they entered into a Memorandum of understanding (MOU) with all 21 of the local branches with respect to the required provisions. They further testified that the requirements were also in their Bylaws. They submitted a copy of the MOU as well as the CFFO Bylaw 1 and CFFO Bylaw 2. The CFFO has met the requirements of Section 7(2)12.
27The CFFO testifies they have audited financial statements prepared for each fiscal year and their year-end is December 31. They entered into evidence the 2022 Annual Report that contains the Audited Financial Statements for the 2022 fiscal year prepared by DBK Accounting. Ms. Pitkin testified that the annual report is provided to the members/supporters and guests who attend the annual meeting in the spring of each year and is posted on their website within 60 days. She also provided the website link to
the last five years annual reports which contains summaries of the audited financial statements for each year. The Tribunal finds that the CFFO has satisfied the requirements that: the audited financial statements be prepared each year, be made available to the public within 60 days of the annual general meeting and the most recent copy be provided to the Tribunal.
28The CFFO submitted oral and documentary evidence on their written service standard setting out the rules applicable to applications for refunds under subsection 21(8) of the Act, as required by the Regulations. The CFFO’s Refund Service Standard was entered into evidence and it was explained it is on their website and is available to the public on request. The Tribunal is satisfied they have complied with this criterion of the Regulations.
29The Regulations set out several requirements for the financial statements in subsection 7(4). The CFFO 2022 audited financial statement was reviewed in detail. It set out a year end of December 31, 2022. The financial statement included the following required pieces of information:
a) an auditor’s report and opinion by DBK Accounting that they have been prepared by an auditor in accordance with generally accepted auditing standards;
b) In note 10, it states the number of Farm Business Registrations was 3844 (this was the net amount);
c) On page 3 and note 10 it lists the total number of payments remitted under section 21(3) of the Act, the amount of $1,023,460 and the net amount after refunds as $978,825;
d)On note 10 it sets out there were 175 refunds in the amount of $44,625;
e) Note 8 under the heading of Commitments indicates it paid the Union des Cultiveurs Franco-Ontariens an amount of $13,934
f) The branches were allocated $99,141.00
30The financial statements from 2022 provides all the required information as set out in the Regulations. The previous audited financial statements from 2018-2021 were not provided in evidence submitted but the Regulations only require the most recent copy be sent to the Tribunal.
31The evidence presented by the CFFO was very fulsome. The Tribunal is of the view that the CFFO is in compliance with the Criteria set out in the Regulation and will be given a renewal of their accreditation.
ORDER
32The Tribunal orders that the Application by the Christian Farmers Federation of Ontario for the renewal of their accreditation under the Farm Registration and Farm Organizations Funding Act, 1993, be granted. Their accreditation will be in effect for a five year period as prescribed in the Regulations.
Released: August 22, 2023
APPENDIX 1
Farm Registration and Farm Organizations Funding Act, 1993
GENERAL
Accreditation of Farm Organizations
Criteria
- (1) In this section,
“supporter”, with respect to a farm organization, means,
(a) any person that has made a payment under subsection 21 (1) of the Act to the farm organization and has not applied for a refund of the payment under subsection 21 (7) of the Act, whether or not the person is a member of the farm organization, and
(b) any member of the farm organization that is not a farming business required to obtain a farming business registration number under section 2 of the Act. O. Reg. 871/21, s. 1.
(2) For the purposes of sections 6, 7.2, 7.3 and 10 of the Act, the following are the criteria for a farm organization to be accredited or to have its accreditation renewed:
The farm organization is incorporated under a general or special Act of the Legislature.
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 the farming business may produce.
It provides education or training in agricultural matters.
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 persons carrying on farming businesses.
At least 250 persons that have a farming business registration number are supporters of the farm organization or, in the case of a farm organization that is not accredited, have paid to the farm organization, in the year in which the farm organization is applying to be accredited, an amount equal to the amount required to be paid under paragraph 3 of subsection 4 (1).
The majority of its supporters are persons described in clause (a) of the definition of “supporter” in subsection (1).
The fee required for membership in the farm organization, or for a class of membership in the farm organization, consists of the payment to the farm organization of the amount that is payable under subsection 21 (1) of the Act.
It has an established process that allows supporters that have a farming business registration number to make submissions to it on any relevant issue and that requires it to consider the submissions and respond.
Subject to subsection (3), it has entered into a written agreement with the Minister and with all other accredited farm organizations to provide special funding to the francophone organization that is eligible to receive special funding under the Act.
It has at least 12 local branches located in Ontario, each of which must represent at least 10 farming businesses.
It contributes to its local branches at least 10 per cent of the gross revenue for any given year that is received from payments made under section 21 of the Act for that year, excluding any refunds that have been provided in that year under subsection 21 (8) of the Act.
It has an arrangement or agreement with its local branches located in Ontario that includes the following:
i. Provisions setting out the respective roles and responsibilities of the farm organization and the local branches.
ii. Provisions setting out a dispute resolution process respecting disputes between the farm organization and a local branch.
iii. A requirement that the farm organization allow each local branch to send a current member to any meeting of the farm organization to which local branches are invited to send representatives.
iv. A right on the part of the farm organization to send a representative to attend each local branch’s annual general meeting.
v. A right on the part of the farm organization to request information from each local branch with respect to the local branch’s governance, activities and financial viability.
- It prepares audited financial statements for each fiscal year in accordance with subsection
(4) and makes them available to the public within 60 days after its annual general meeting in the relevant fiscal year.
In the case of an accredited farm organization applying to have its accreditation renewed, the farm organization has provided a copy of its most recent audited financial statement to the Tribunal.
In the case of an accredited farm organization applying to have its accreditation renewed, the farm organization 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 on request. O. Reg. 871/21, s. 1.
(3) The requirement to enter into an agreement described in paragraph 9 of subsection (2) does not apply to a farm organization that is applying to be accredited for the first time if the farm organization agrees, in writing, to enter into an agreement described in that paragraph as soon as possible after being accredited. O. Reg. 871/21, s. 1.
(4) An audited financial statement for a fiscal year shall include,
(a) financial statements and an auditor’s report prepared by an auditor in accordance with generally accepted auditing standards;
(b) the total number of supporters the farm organization had in the fiscal year;
(c) the total amount the farm organization received from payments remitted under subsection 21 (3) of the Act in the fiscal year;
(d) the number of refunds the farm organization provided under subsection 21 (8) of the Act in the fiscal year and the total amount of those refunds;
(e) the amount, if any, the farm organization paid in the fiscal year to the francophone organization eligible to receive special funding under the Act; and
(f) the amount the farm organization allocated to its local branches in the fiscal year. O. Reg. 871/21, s. 1.
Footnotes
- Re CFFO Accreditation 2018 ONAFRAAT 15