Regulation - Minister

Review of Ontario Regulation 783/20 (General) (Regulation), made under the Farm Registration and Farm Organizations Funding Act, 1993, S.O. 1993, c. 21 (FRFOFA), to finalize regulatory improvements aimed at reducing administrative burden and supporting program delivery.

Regulation Number(s):
O. Reg. 783/20
Instrument Type:
Regulation - Minister
Bill or Act:
Farm Registration and Farm Organizations Funding Act
Summary of Decision:
The Ministry is implementing a phased approach of the changes to O. Reg. 783/20 under the FRFOFA.

Phase One: Effective January 1, 2023
The administrative per application processing fee that the Accredited Farm Organizations pay to AgriCorp to administer the Farm Business Registration Program is being updated. This fee is being changed from $19.70 to $19.20 per application.

Phase Two: Ongoing
The Ministry is continuing to explore opportunities to update the criteria that the francophone organization must meet to become eligible for special funding under the FRFOFA. The objective is to reduce administrative burden and add clarity while ensuring continued accountability and value to Ontario's francophone farmers. This work is expected to continue throughout early 2023. A follow up decision posting will be made once this work is completed.
Analysis of Regulatory Impact:
There is a small impact limited to the three Accredited Farm Organizations. The administrative fee that the Accredited Farm Organizations pay per program registration to AgriCorp to deliver the program is being updated to reflect changes in program administration costs. The administrative fee is being changed from $19.70 to $19.20 per registration.

The previous fee of $19.70 included a one-time amount of $1.52 per FBR application to cover the costs AgriCorp incurred to implement a new program IT System. Given this, the previous fee for administration was $18.18 and as such the updated fee of $19.20 represents an increase of $1.02 per FBR application.

Further Information:
Proposal Number:
22-OMAFRA010
Posting Date:
October 12, 2022
Summary of Proposal:
The FRFOFA, and the regulations thereunder, guide the delivery of the FBR program. Under the FBR program, farm businesses that have an annual gross income from farming activities of $7,000 or more are required to register annually. The FBR payment is directed towards the AFO selected by the registrant. An FBR number is an eligibility requirement for many provincial agricultural programs, including the Farm Property Class Tax Rate Program.

Over the last couple of years, the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA), working with AgriCorp (the agency that delivers the FBR program) and the AFOs, has made several changes to the FBR program to reduce administrative burden, provide flexibility and enable online program delivery.

The changes were made in a phased approach. Most changes came into effect on January 1, 2021 and were aimed at supporting online delivery, improving FBR program administration, and reducing burden for farmers. For example, among the changes made were removing of the requirement for farm businesses to complete a detailed registration form every five years and streamlining the information collected as part of the registration process.

The remaining changes, which became effective on January 1, 2022, focused on improvements to the accreditation criteria for the AFOs to provide clarity, reduce burden and improve governance. In addition, provisions were added to allow flexibility for the AFOs and the eligible francophone organization in periods of emergencies by allowing for suspension of certain criteria during emergencies declared under the Emergency Management And Civil Protection Act.

As part of the effort to complete the regulatory changes, OMAFRA is reviewing the criteria that a francophone organization must meet to be eligible to receive special funding under the FRFOFA. Specifically, OMAFRA is, in consultation with the current eligible francophone organization, exploring opportunities to update the criteria to reduce administrative burden and add clarity while ensuring continued accountability and value to Ontario's francophone farmers. For example, initial opportunities were identified to better align the francophone organization criteria with the recent changes made to the AFO criteria, such as removing duplicate requirements around board of director elections. Further, some current francophone organization eligibility requirements have been noted to create a significant administrative burden but offer limited value.

Additionally, OMAFRA is looking at minor changes to support FBR program delivery. As part of the changes made in 2021, the FBR program moved to a beneficiary-pay model to ensure the long-term sustainability of the program. OMAFRA is reviewing the current per application processing fee that Accredited Farm Organizations pay to AgriCorp to administer the FBR program to ensure it continues to reflect administration costs, which is expected to reduce slightly for the coming year.

These changes, if approved, would complete the government's efforts to update the FRFOFA's legislative and regulatory framework to improve the delivery of the FBR program and reduce burden for farmers, AFOs and the identified francophone organization under the FRFOFA.
Contact Address:
Branch: Farm Finance Branch
Address: 1 Stone Road West, Guelph, ON
N1G 4Y2
Effective Date:
January 1, 2023
Decision:
Approved