Acts and Regulations

84-295 - General

Full text
Current to 20 November 2023
NEW BRUNSWICK
REGULATION 84-295
under the
Agricultural Development Act
(O. C. 84-1073)
Filed December 20, 1984
Under section 44 of the Agricultural Development Act, the Lieutenant-Governor in Council makes the following Regulation:
85-175; 2018-4
1This Regulation may be cited as the General Regulation - Agricultural Development Act.
85-175
2In this Regulation
“Act” means the Agricultural Development Act;(Loi)
“agriculture” includes an agricultural operation as defined in the Agricultural Operation Practices Act and a farming operation;(agriculture)
“applicant” means a person who requests financial assistance from the Minister;(requérant)
“appraised value” Repealed: 2010-114
“borrower” means a person who obtains financial assistance from the Minister in the form of a loan;(emprunteur)
“economic farm unit” Repealed: 2010-114
“family farm” Repealed: 2010-114
“farmer” means a person who is engaged in a farming operation or a farming operation combined with a woodlot;(agriculteur)
“farm unit” means a farming operation or a farming operation combined with a woodlot;(entité agricole)
“first-time borrower” Repealed: 2010-114
“industry” means economic or commercial activities related to agriculture, aquaculture or fisheries;(industrie)
“lessee” means a person who holds land under a lease from the Board;(locataire)
“person” includes a cooperative or association;(personne)
“provincial interest rate on loans” means the interest rate payable on loans made under the Act, determined by the Minister of Finance on a quarterly basis to be the average interest cost to the Province of borrowing money during the previous quarter;(taux d’intérêt provincial sur les prêts)
“provincial lending rate” Repealed: 2020-4
“purchaser” means a person who holds land under an agreement of sale with the Board.(acheteur)
“total amount of financial assistance” means the sum of(montant intégral d’aide financière)
(a) the financial assistance requested by the applicant, and
(b) all financial assistance that the applicant previously obtained from the Minister in the same calendar year but has not repaid.
“woodlot operator” Repealed: 2010-114
85-175; 2001-30; 2010-114; 2018-4; 2019, c.29, s.6; 2020-4
PANELS OF THE BOARD
2018-4
2.01For the purposes of subsection 10.1(1) of the Act, a panel of the Board shall consist of the following:
(a) at least one member having technical or specialized knowledge of the industry to which the consideration of the application for financial assistance relates;
(b) one member as Chair of the panel; and
(c) an adequate number of members to make a recommendation by majority vote.
2018-4
APPLICATIONS FOR FINANCIAL ASSISTANCE
2018-4
2.02For the purposes of subsection 13(1) of the Act, the total amount of financial assistance provided by the Minister may be used as follows:
(a) to purchase farming operations;
(a.1) to purchase shares in a farming operation;
(b) to purchase land to be added to existing farming operations;
(c) to erect farm buildings and facilities;
(d) to purchase essential farming equipment and livestock;
(e) to convert short-term liabilities to medium-term or long-term obligations as warranted by income probabilities and the security to be taken;
(f) to accomplish a more effective use of land;
(g) to establish and improve woodlots;
(h) to provide financial support to persons affected by land use and agricultural development projects; and
(i) to finance agricultural linkage operations.
2018-4; 2020-4
2.03For the purposes of subsection 13(2) of the Act, an application for financial assistance shall be
(a) signed by the applicant, and
(b) delivered in person to the Minister.
2018-4
APPOINTMENT OF MEMBERS
OF THE BOARD
Repealed: 2009-92
2009-92
2.1Repealed: 2009-92
85-175; 90-4; 2009-92
APPROVALS
2.2(1)For the purposes of subsection 13(4) of the Act, the amount is $100,000.
2.2(2)For the purposes of subsection 13(5) of the Act, the amount is $500,000.
90-4; 2010-114; 2018-4
INTEREST
2018-4
2.3(1)The annual interest rate applicable to financial assistance provided under subsection 13(1) of the Act shall be fixed at a rate that is at least one percent higher than the provincial interest rate on loans.
2.3(2)For the purposes of subsection (1), the applicable provincial interest rate on loans is the lowest provincial interest rate on loans in effect between the date the application for financial assistance is received by the Minister and the date of first disbursement of funds, inclusive.
2.3(3)The interest payable shall be calculated semi-annually on the outstanding principal and accrued interest.
2018-4; 2020-4
SECURITY
2018-4
2.4For the purposes of subsection 13.01(1) of the Act, the security taken on financial assistance shall be in the form of a mortgage or any other charge on the assets utilized by the person who has obtained financial assistance in the practice of agriculture.
2018-4
ANNUAL REPORT
2018-4
2.5For the purposes of section 14 of the Act, the annual report submitted by the Minister shall include a detailed record of all loans made or grants, guarantees or other financial assistance provided by the Minister up to the amount referred to in subsection 2.2(2) in the preceding year.
2018-4
ANNUAL CHARGE
2018-4
2.6For the purposes of subsection 15(1) of the Act, a person who obtains financial assistance in the form of a guarantee of the repayment of a loan shall pay
(a) on the date of issue of the guarantee, an annual charge that is equal to 1.5% of the outstanding principal amount of the loan to which the guarantee applies, and
(b) each following year on the anniversary date of the date of issue, an amount equal to 1.5% of the portion of the principal amount of the loan to which the guarantee applies that is outstanding on that date.
2018-4
LOANS
Repealed: 2018-4
2018-4
3Repealed: 2018-4
85-125; 90-138; 92-109; 2001-30; 2007-57; 2010-114; 2018-4
LEASES
Repealed: 2020-4
2020-4
4Repealed: 2020-4
94-85; 2001-30; 2010-114; 2020-4
AGREEMENTS OF SALE
5The terms and conditions under which land is to be sold under an agreement of sale are:
(a) the Board shall be satisfied that a sale of land under an agreement of sale will effectively establish the purchaser on a farm unit in circumstances enabling the purchaser to obtain the income necessary to repay any financial assistance given under the Act;
(b) the Board shall be satisfied that a purchaser has the necessary ability, skill and knowledge to operate the premises in accordance with a mutually agreed on management plan;
(b.1) the purchaser shall undertake to operate the premises in accordance with a mutually agreed on management plan;
(c) a purchaser shall operate any woodlot or woodland situated on premises occupied under an agreement of sale in accordance with a mutually agreed management plan, but the cutting and sale of wood from such woodlot shall be done only by authority of a release or permit issued by the Board;
(d) a purchaser shall, at such times as the Board may require, submit a statement showing the details of the operation of the occupied premises and conveying a true account of the condition and income producing state of the premises;
(e) a member of the Board or a person employed by the Board may at any reasonable time enter upon any property occupied by a purchaser under an agreement of sale to observe and evaluate the manner in which the property is being used and managed;
(f) title to land occupied under an agreement of sale shall remain in the Board until all money due the Board is paid;
(g) a purchaser shall pay all taxes levied against the occupied premises;
(h) the sale price of premises shall be determined in the discretion of the Board and shall be based on the appraised value for agricultural or forestry purposes, or both, of the premises at the time of sale;
(i) the term of an agreement of sale shall be determined in the discretion of the Board, to a maximum of five years;
(j) notwithstanding paragraph (i), the Board may renew an agreement of sale where the amortization plan of an agreement of sale exceeds the term of the agreement or of any renewal and a balance of principal or interest, or both, remains outstanding upon the expiry of such agreement or renewal;
(k) interest payable under an agreement of sale shall be the provincial interest rate on loans in effect at the time the loan is approved by the Board, calculated semi-annually on the outstanding principal and accrued interest;
(l) payment of the purchase price shall be in equal periodic instalments of principal and accrued interest, but the Board may, for good reason, of which it shall be the judge, and with the consent of the purchaser, alter or amend an agreed schedule of repayment;
(m) a purchaser shall, at his own expense, maintain adequate insurance to protect the Board against loss or claims for damages arising from any use of the premises whatsoever; and
(n) when the Board repossesses property under section 19 of the Act, the defaulting purchaser shall have no recourse at law or in equity against the Board for so repossessing any property.
2010-114; 2018-38; 2020-4
REMUNERATION OF MEMBERS OF THE BOARD
Repealed: 2018-4
2009-92; 2018-4
5.1Repealed: 2018-4
2009-92; 2016, c.37, s.11; 2018-4
GENERAL
6The Minister may at his or her discretion institute or assist in instituting a plan of disability and life insurance to borrowers and purchasers at their own expense in the amount of outstanding principal and accrued interest.
2018-4
7The Minister may extend assistance by grant of money or otherwise to farmers
(a) for the purpose of providing advice on woodlot management and for establishing and improving woodlots and woodlot management on existing holdings, and
(b) for the conversion of ineffectively used land on existing holdings to a more effective use in keeping with the capability of the land.
2010-114; 2018-4
8Repealed: 2010-114
2010-114
9Part I of New Brunswick Regulation 66-26 under the Farm Adjustment Act is repealed.
N.B. This Regulation is consolidated to February 5, 2020.