28:
258:
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.
246:
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
371:
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
261:
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
299:
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
257:
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
180:
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
236:
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.
269:
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
372:
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.
407:
163:
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
224:
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
328:
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
55:
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
277:
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
344:
375:
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:
308:
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
250:
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
355:, in order for the purchaser to be able to settle the amount of the payments in default, together with accrued interest and other related costs.
521:
311:
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
881:
159:
already allowed protection for farmers in financial difficulty, it was seen as being too broad in scope, where even
939:
432:
138:
877:
624:
976:
300:
right to apply for a stay of proceedings, and copies must be given to the farmer and administrator at least 15
986:
971:
809:
317:
212:
861:
558:"SI 98/52: Order Fixing April 1, 1998 as the Date of the Coming into Force of the Farm Debt Mediation Act"
916:
288:
a farmer shall not make a new application under the Act during the two years following the previous one
539:
473:
813:
557:
760:
840:
351:, the lienholder must give notice to the farmer of his action, and must hold the assets for 10
339:
Where farm machinery and farm equipment have been purchased from a dealer in the province, the
902:
472:
there are currently no administrators that are engaged at this time, who are not part of the
778:
155:
134:
85:
35:
390:
the debtor has engaged in farming activities both before and since obtaining the debt; and
325:
There is debate as to whether these notices should be given concurrently or consecutively.
247:
plans for the purpose of reaching financial arrangements with creditors and the
Minister."
8:
196:(a) who are for any reason unable to meet their obligations as they generally become due,
182:
826:
907:
845:
765:
544:
362:
appointed with respect to his assets, but may opt to make an assignment in bankruptcy.
792:
436:
336:. The FFPA process cannot commence until the FDMA stay of proceedings has terminated.
484:
unless the administrator agrees to accept the farmer's choice of person for the role
343:
provides that it cannot be repossessed by a lienholder without the approval of the
126:
415:
950:
931:
301:
315:
Initial notices of intention to realize on security must be given under the
359:
352:
348:
164:
160:
92:
145:
with creditors while allowing such farmers to continue their operations.
393:
the debtor intends to make an eventual profit from the farming activity.
141:, as well as certain protective provisions available to help facilitate
46:
747:"Farm Protection In Manitoba – Safe Harbour Or A Trap For The Unwary?"
305:
233:
225:
142:
384:
the farming activity is entirely the result of the debtor’s efforts;
27:
381:
the debtor has dedicated most his/her land to a farming activity;
229:
75:
137:
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
812: at par. 29-31, 2 SCR 961 (2 September 1999),
806:
M & D Farm Ltd v
Manitoba Agricultural Credit Corp
131:
Loi sur la médiation en matière d’endettement agricole
874:
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)
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753:
738:
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715:
706:
697:
688:
679:
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652:
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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:
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360:interim receiver
30:
16:
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810:1999 CanLII 648
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743:
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685:FDMA, ss. 12-13
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400:Further reading
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321:, FDMA and the
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178:
173:
151:
82:Enacted by
59:
56:
51:
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12:
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5:
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891:External links
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676:FDMA, s. 11(2)
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67:SC 1997, c. 21
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862:2003 ABQB 993
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814:Supreme Court
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192:Only farmers
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161:hobby farmers
158:
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110:Bill citation
108:
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100:
97:25 April 1997
96:
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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:
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681:
672:
663:
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552:
547:1997, c. 21
538:
534:
525:
489:
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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
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938:.
934:.
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