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Farm Debt Mediation Act

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faith, the mediation will not result in reaching an arrangement between the farmer and a majority of creditors, the farmer has contravened any directive issued concerning the guardianship of the assets, or where the farmer has jeopardized the assets or obstructed the guardian in the performance of his duties.
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the administrator or appropriate expert will undertake "a detailed review of the farmer's financial affairs", which must include an inventory and financial statements of the farming operation, and may recommend that specified parties participate in a mediation, as well as the "preparation of recovery
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The Act's mandatory requirements have been strictly interpreted by the courts. For example, it has been held that a farmer cannot waive the secured creditor's obligation to given notice of intention to enforce security, even where it has been included in a mediation agreement. However, a stay cannot
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in the case of a mediation arising under s. 5(1)(b) (which concerns only financial review and mediation), the mediation terminates when the administrator determines that either the farmer or the majority of the creditors refuse to participate in the mediation or refused to continue to participate in
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Before enforcing any remedy against a farmer's property, or commencing any proceedings "for the recovery of a debt, the realization of any security or the taking of any property of a farmer," a secured creditor must give written notice of intention to do so, together with advising the farmer of his
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in the case of a mediation arising under s. 5(1)(a) (which includes a stay of proceedings), the mediation and stay terminate when the administrator determines that either the farmer or the majority of the creditors refuse to participate in the mediation or refused to continue to participate in good
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In contrast to the FDRA, a farmer is defined as being any individual or entity "that is engaged in farming for commercial purposes and that meets any prescribed criteria," and only insolvent farmers may apply for a financial review and mediation with all of the farmer's creditors (either with or
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of any debt) the Minister, issue a stay of proceedings for 30 days where it has been requested, and (after a preliminary review of the farmer’s financial affairs) make a determination as to whether the farmer is actually eligible to make such an application.
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a stay of proceedings can be extended for a further three 30-day periods, and must be extended to the date of an appeal board's decision concerning an administrator's decision not to extend the stay (when the stay is scheduled to expire in the
202:(c) the aggregate of whose property is not, at a fair valuation, sufficient, or if disposed of at a fairly conducted sale under legal process would not be sufficient, to enable payment of all their obligations, due and accruing due 284:
the minister may appoint one or more appeal boards to hear appeals from an administrator's decisions concerning a farmer's eligibility to make an application, or relating to an extension or termination of a stay of
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affect the appointment already in effect of an interim receiver for the purposes of preserving the estate of a bankrupt for the benefit of creditors, as it is not a proceeding for the recovery of a debt.
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could receive protection from creditors. The Act's structure of exercising authority through a network of appointed boards was also viewed as being too decentralized. In April 1997, the FDMA received
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In place of the former Farm Debt Review Boards, administrators are either appointed or engaged by Agriculture and Agri-Food Canada to administer the Act, and they can enter into agreements to engage
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After the stay of proceedings under the FDMA has ceased to have effect, the farmer's real property may not be seized unless a separate mediation process has been completed and leave granted by the
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An Act to provide for mediation between insolvent farmers and their creditors, to amend the Agriculture and Agri-Food Administrative Monetary Penalties Act, and to repeal the Farm Debt Review Act
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when a stay has been issued, the administrator must appoint a guardian over the farmer's assets (who may be the farmer), and the administrator may issue directives to such guardian
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Because the Act covers only farming operations that are operated "with a commercial purpose", the courts have devised a list of factors to consider whether such is the case:
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is not considered a secured creditor nor obliged to give a FDMA notice, unless that guarantor is a farmer and has provided collateral security in support of the guarantee.
232:. Where an administrator receives an application from an insolvent farmer, they must inform all the farmer's secured and unsecured creditors and (where the Minister is 210:
A stay of proceedings under the FDMA operates "notwithstanding any law", which has been interpreted to mean that it also suspends of petition of bankruptcy under the
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when the results of a review has been finalized in a report, the administrator must appoint a mediator and inform the farmer and creditors of the appointment
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Enforcement involves a complex interplay between the FDMA and other relevant statutes. In Manitoba, the process is characterized thus:
981: 956: 966: 961: 746: 628: 440: 329: 185:). As in the FDRA, "farming" included the production or raising of any animal or thing on a farm, and it was declared that: 199:(b) who have ceased paying their current obligations in the ordinary course of business as they generally become due, or 423: 262:
good faith, or the mediation will not result in reaching an arrangement between the farmer and a majority of creditors
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already allowed protection for farmers in financial difficulty, it was seen as being too broad in scope, where even
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right to apply for a stay of proceedings, and copies must be given to the farmer and administrator at least 15
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a farmer shall not make a new application under the Act during the two years following the previous one
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Where farm machinery and farm equipment have been purchased from a dealer in the province, the
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there are currently no administrators that are engaged at this time, who are not part of the
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the debtor has engaged in farming activities both before and since obtaining the debt; and
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There is debate as to whether these notices should be given concurrently or consecutively.
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plans for the purpose of reaching financial arrangements with creditors and the Minister."
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appointed with respect to his assets, but may opt to make an assignment in bankruptcy.
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unless the administrator agrees to accept the farmer's choice of person for the role
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provides that it cannot be repossessed by a lienholder without the approval of the
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Initial notices of intention to realize on security must be given under the
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with creditors while allowing such farmers to continue their operations.
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the debtor intends to make an eventual profit from the farming activity.
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the farming activity is entirely the result of the debtor’s efforts;
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the debtor has dedicated most his/her land to a farming activity;
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that enables a debt advisory service to insolvent farmers by
735:, (2006) Carswell 3502, 4461 (Ont.S.C.J.). 358:
A farmer cannot be petitioned into bankruptcy or have an
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M & D Farm Ltd v Manitoba Agricultural Credit Corp
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Loi sur la médiation en matière d’endettement agricole
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Jacob's Hold Inc v Canadian Imperial Bank of Commerce
864: at par. 68, 10 WWR 452 (4 December 2003) 522:"Tread Carefully – Enforcement of Farming Assets" 948: 167:, and it was brought into force in April 1998. 463:no prescribed criteria are currently in effect 133:, S.C. 1997, c. 21) ("FDMA") is an act of the 425:Evaluation of the Farm Debt Mediation Service 515: 513: 511: 509: 493:with respect to the seizure of growing crops 880:, 52 OR (3d) 776 (14 September 2000), 506: 744: 580: 578: 405: 949: 519: 387:the debtor has claimed farming losses; 206:are eligible to apply under section 5. 745:Jackson, David R.M. (18 April 2013). 827:The Farm Machinery and Equipment Act 575: 240:In connection with the application: 408:"Things You May Not Know About the 13: 896:Connected legislation (as amended) 830:, C.C.S.M. , c. F40+section=38-39 779:The Personal Property Security Act 399: 113:C-38, 35th Parliament, 2nd Session 14: 998: 890: 749:. Winnipeg: Taylor McCaffrey LLP. 406:Gerecke, David G. (7 July 2016). 304:before doing so. The holder of a 219: 982:Canadian agriculture legislation 957:History of agriculture in Canada 940:Agriculture and Agri-Food Canada 433:Agriculture and Agri-Food Canada 341:Farm Machinery and Equipment Act 139:Agriculture and Agri-Food Canada 26: 967:Canadian insolvency legislation 917:Farm Debt Mediation Regulations 867: 851: 833: 819: 799: 785: 782:, C.C.S.M. , c. P.35, s. 37(7) 771: 753: 738: 724: 715: 706: 697: 688: 679: 670: 661: 652: 643: 634: 487: 478: 466: 330:Manitoba Court of Queen’s Bench 793:The Family Farm Protection Act 614: 605: 596: 587: 550: 532: 457: 323:Personal Property Security Act 294: 1: 932:"Farm Debt Mediation Service" 858:Intec Holdings Ltd v Grisnich 841:Bankruptcy and Insolvency Act 761:Bankruptcy and Insolvency Act 667:FDMA, ss. 11(1), 14(2), 14(4) 500: 318:Bankruptcy and Insolvency Act 213:Bankruptcy and Insolvency Act 148: 962:Canadian federal legislation 345:Manitoba Farm Industry Board 170: 7: 520:Howard, Ben (23 May 2016). 10: 1003: 334:Family Farm Protection Act 882:Superior Court of Justice 571:(8): 1379. 15 April 1998. 366: 109: 101: 91: 81: 71: 63: 41: 34: 25: 18: 474:Public Service of Canada 450: 175: 903:Farm Debt Mediation Act 565:Canada Gazette, Part II 540:Farm Debt Mediation Act 410:Farm Debt Mediation Act 122:Farm Debt Mediation Act 20:Farm Debt Mediation Act 977:Canadian corporate law 631:(Manitoba, Canada) 629:Court of Queen's Bench 208: 130: 925:Administration of Act 884:(Ontario, Canada) 768:1985, c. B-3, s. 244 627: (4 March 1999), 187: 987:Agricultural finance 972:1997 in Canadian law 848:1985, c. B-3, s. 48 796:, C.C.S.M. , c. F15 156:Farm Debt Review Act 135:Parliament of Canada 86:Parliament of Canada 36:Parliament of Canada 528:. Cox & Palmer. 526:coxandpalmerlaw.com 183:stay of proceedings 732:CIBC v. Verbrugshe 72:Territorial extent 878:2000 CanLII 22730 625:1999 CanLII 14089 621:Re North 40 Farms 442:978-0-660-04941-0 117: 116: 994: 943: 885: 871: 865: 855: 849: 837: 831: 823: 817: 803: 797: 789: 783: 775: 769: 757: 751: 750: 742: 736: 734: 728: 722: 719: 713: 710: 704: 701: 695: 692: 686: 683: 677: 674: 668: 665: 659: 656: 650: 647: 641: 638: 632: 618: 612: 609: 603: 600: 594: 591: 585: 582: 573: 572: 562: 554: 548: 536: 530: 529: 517: 494: 491: 485: 482: 476: 470: 464: 461: 446: 430: 419: 360:interim receiver 30: 16: 15: 1002: 1001: 997: 996: 995: 993: 992: 991: 947: 946: 930: 893: 888: 872: 868: 856: 852: 838: 834: 824: 820: 810:1999 CanLII 648 804: 800: 790: 786: 776: 772: 758: 754: 743: 739: 730: 729: 725: 720: 716: 711: 707: 702: 698: 693: 689: 685:FDMA, ss. 12-13 684: 680: 675: 671: 666: 662: 657: 653: 648: 644: 639: 635: 619: 615: 610: 606: 601: 597: 592: 588: 583: 576: 560: 556: 555: 551: 537: 533: 518: 507: 503: 498: 497: 492: 488: 483: 479: 471: 467: 462: 458: 453: 443: 428: 422: 402: 400:Further reading 369: 321:, FDMA and the 297: 222: 178: 173: 151: 82:Enacted by 59: 56: 51: 50: 12: 11: 5: 1000: 990: 989: 984: 979: 974: 969: 964: 959: 945: 944: 927: 926: 922: 921: 912: 911: 898: 897: 892: 891:External links 889: 887: 886: 866: 850: 832: 818: 798: 784: 770: 752: 737: 723: 714: 705: 696: 687: 678: 676:FDMA, s. 11(2) 669: 660: 651: 642: 633: 613: 604: 595: 586: 574: 549: 531: 504: 502: 499: 496: 495: 486: 477: 465: 455: 454: 452: 449: 448: 447: 441: 420: 416:Miller Thomson 401: 398: 397: 396: 395: 394: 391: 388: 385: 382: 368: 365: 364: 363: 356: 337: 326: 296: 293: 292: 291: 290: 289: 286: 281: 280: 279: 278: 272: 271: 266: 265: 264: 263: 259: 252: 251: 248: 221: 220:Administration 218: 204: 203: 200: 197: 177: 174: 172: 169: 150: 147: 115: 114: 111: 107: 106: 103: 99: 98: 95: 89: 88: 83: 79: 78: 73: 69: 68: 67:SC 1997, c. 21 65: 61: 60: 58: 57: 54: 44: 43: 42: 39: 38: 32: 31: 23: 22: 9: 6: 4: 3: 2: 999: 988: 985: 983: 980: 978: 975: 973: 970: 968: 965: 963: 960: 958: 955: 954: 952: 941: 937: 933: 929: 928: 924: 923: 919: 918: 914: 913: 909: 905: 904: 900: 899: 895: 894: 883: 879: 875: 870: 863: 862:2003 ABQB 993 859: 854: 847: 843: 842: 836: 829: 828: 822: 815: 814:Supreme Court 811: 807: 802: 795: 794: 788: 781: 780: 774: 767: 763: 762: 756: 748: 741: 733: 727: 718: 709: 700: 691: 682: 673: 664: 655: 646: 637: 630: 626: 622: 617: 608: 599: 590: 581: 579: 570: 566: 559: 553: 546: 542: 541: 535: 527: 523: 516: 514: 512: 510: 505: 490: 481: 475: 469: 460: 456: 444: 438: 434: 427: 426: 421: 417: 413: 411: 404: 403: 392: 389: 386: 383: 380: 379: 378: 377: 376: 373: 361: 357: 354: 350: 346: 342: 338: 335: 331: 327: 324: 320: 319: 314: 313: 312: 309: 307: 303: 302:business days 287: 283: 282: 276: 275: 274: 273: 268: 267: 260: 256: 255: 254: 253: 249: 245: 244: 243: 242: 241: 238: 235: 231: 227: 217: 215: 214: 207: 201: 198: 195: 194: 193: 192:Only farmers 191: 186: 184: 168: 166: 162: 161:hobby farmers 158: 157: 146: 144: 140: 136: 132: 128: 124: 123: 112: 110:Bill citation 108: 104: 100: 97:25 April 1997 96: 94: 90: 87: 84: 80: 77: 74: 70: 66: 62: 53: 52: 49: 48: 40: 37: 33: 29: 24: 21: 17: 935: 920:, SOR/98-168 915: 901: 873: 869: 857: 853: 839: 835: 825: 821: 805: 801: 791: 787: 777: 773: 759: 755: 740: 731: 726: 717: 708: 699: 690: 681: 672: 663: 654: 645: 636: 620: 616: 607: 598: 589: 568: 564: 552: 547:1997, c. 21 538: 534: 525: 489: 480: 468: 459: 424: 409: 374: 370: 353:working days 349:repossession 347:. Following 340: 333: 322: 316: 310: 298: 239: 223: 211: 209: 205: 189: 188: 179: 165:Royal Assent 154: 152: 121: 120: 118: 105:1 April 1998 93:Royal assent 45: 19: 910:1997, c. 21 721:FDMA, s. 21 712:FDMA, s. 20 703:FDMA, s. 15 694:FDMA, s. 16 658:FDMA, s. 10 611:FDMA, s. 12 414:. Toronto: 295:Enforcement 285:proceedings 951:Categories 649:FDMA, s. 9 640:FDMA, s. 7 602:FDMA, s. 6 593:FDMA, s. 5 584:FDMA, s. 2 501:References 332:under the 181:without a 153:While the 149:Background 47:Long title 936:agr.gc.ca 306:guarantee 234:guarantor 226:mediators 171:Framework 143:mediation 102:Commenced 816:(Canada) 435:. 2016. 270:interim) 64:Citation 876:, 860:, 808:, 623:, 230:experts 846:R.S.C. 766:R.S.C. 439:  367:Impact 127:French 76:Canada 561:(PDF) 451:Notes 429:(PDF) 176:Scope 908:S.C. 545:S.C. 437:ISBN 228:and 119:The 569:132 953:: 938:. 934:. 906:, 844:, 764:, 577:^ 567:. 563:. 543:, 524:. 508:^ 431:. 216:. 129:: 942:. 445:. 418:. 412:" 190:6 125:(

Index


Parliament of Canada
Long title
Canada
Parliament of Canada
Royal assent
French
Parliament of Canada
Agriculture and Agri-Food Canada
mediation
Farm Debt Review Act
hobby farmers
Royal Assent
stay of proceedings
Bankruptcy and Insolvency Act
mediators
experts
guarantor
business days
guarantee
Bankruptcy and Insolvency Act
Manitoba Court of Queen’s Bench
Manitoba Farm Industry Board
repossession
working days
interim receiver
"Things You May Not Know About the Farm Debt Mediation Act"
Miller Thomson
Evaluation of the Farm Debt Mediation Service
Agriculture and Agri-Food Canada

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