Jacobs et al. v. Agricultural Stabilization Board

(1) The Board shall from time to time

(a) take such action in accordance with this Act as is necessary to stabilize the prices of agricultural commodities at their respective prescribed prices; and

(b) make such recommendations, including recommendations respecting the index referred to in section 8.2 and, after consultation with producer groups, recommendations respecting the powers that may be prescribed under subsection 10(1.1), as are necessary to ensure that the prescribed prices for agricultural commodities in a year bear a fair relationship to the production costs of such commodities in the year.

(2) Action by the Board to stabilize the price of an agricultural commodity under this Act shall be taken in relation to the agricultural commodity or in relation to such grade, quality, variety, class, type or form thereof, and with reference to such place or places, as the Board considers appropriate.

In each year the Board shall establish the base price for each agricultural commodity, or the grade, quality, variety, class, type or form thereof, the price of which is to be stabilized under this Act.

8.1 The base price of an agricultural commodity in a year shall be the average price thereof at representative markets as determined by the Board for the five years immediately preceding the year.

8.2 (1) The prescribed price of an agricultural commodity in a year shall be,

(a) in relation to a named commodity, the amount obtained by adjusting ninety per cent, or such higher percentage as the Governor in Council may prescribe, of the base price thereof for the year by an index calculated in such manner as may be prescribed by the Governor in Council to reflect the estimated production costs of the commodity in the year as compared with the average of production costs for the five years immediately preceding the year; and

(b) in relation to a designated commodity, the amount obtained by adjusting such percentage of the base price thereof for the year as the Governor in Council prescribes by the index therefor calculated as described in paragraph (a).

(2) In prescribing a percentage of the base price of an agricultural commodity under paragraph (1)(a) or (b), the Governor in Council shall be guided by the recommendations of the Board made pursuant to subsection

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7(1) and such other factors as the Governor in Council considers to be relevant.

(1) Action by the Board under paragraph 10(1)(a), (b) or (c) in relation to an agricultural commodity shall commence at such time in each year as is determined by the Board, and shall continue thereafter for a period of twelve months or, in the case of a designated commodity, for such other period as the Governor in Council prescribes.

(2) The percentage of the base price of a named commodity higher than ninety prescribed under paragraph 8.2(1)(a), and the designation of an agricultural commodity under paragraph (b) of the definition “agricultural commodity” in subsection 2(1), ceases to have effect at the end of the period mentioned in subsection (1) in relation to that commodity.

A number of definition provisions in s. 2(1) of the Act must be referred to for context, as follows:

2. (1) In this Act

“agricultural commodity” means

(a) any of the following commodities produced in Canada, namely, cattle, hogs and sheep; industrial milk and industrial cream; corn and soybeans; and oats and barley not produced in the designated area as defined in the Canadian Wheat Board Act, hereinafter called “named commodity”, and

(b) any other natural or processed product of agriculture (including oats and barley produced in the designated area as defined in the Canadian Wheat Board Act and not marketed through The Canadian Wheat Board) designated by the Governor in Council as an agricultural commodity for the purposes of this Act, hereinafter called “designated commodity”;

“base price”, in relation to an agricultural commodity, means the base price as established under section 8.1;

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“Minister” means the Minister of Agriculture;

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“prescribed price”, in relation to an agricultural commodity, means the prescribed price as established under section 8.2.

Section 10, detailing the powers of the Board, reads:

(1) Subject to and in accordance with any regulations that may be made by the Governor in Council, the Board may

(a) purchase any agricultural commodity at the prescribed price;

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(b) pay to producers of an agricultural commodity, directly or through such agent as the Board may determine, the amount by which the prescribed price exceeds a price determined by the Board to be the average price at which the commodity is sold in such markets and during such periods as the Board considers appropriate;

(c) make such payment for the benefit of producers as the Governor in Council may authorize for the purpose of stabilizing the price of an agricultural commodity at the prescribed price;

(d) sell or otherwise dispose of, package, process, store, ship, transport, export, insure or otherwise deal in any commodity purchased by the Board under this section;

(e) enter into contracts or appoint agents to do anything authorized under this Act;

(f) purchase at the request of any department or agency of the Government of Canada any agricultural commodity required by such department or agency;

(f.1) by order require any person to give, at the time specified in the order, such information respecting agricultural commodities as may be necessary for the proper administration of this Act; and

(g) do all such acts and things as are necessary or incidental to the exercise of any of its powers, duties or functions under this Act.

(1.1) For the purpose of stabilizing the price of an agricultural commodity, the Board may exercise such other powers as are prescribed by the Governor in Council, upon the recommendation of the Board, for that purpose.

(2) For the purpose of stabilizing the price of an agricultural commodity, the Board may exercise all or any of its powers under this section in relation to any food product thereof, and for the purposes of this section the expression “prescribed price” in relation to such food product shall be construed to be such price as is determined by the Board to be proportionate to the prescribed price for such agricultural commodity.

(3) The Board may make rules for the regulation of its proceedings and the performance of its duties and functions under this Act.

There are three other provisions of the Act of which account must be taken, namely, s. 2(2), s. 4.(5) and s. 11. They are, respectively, as follows:

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2. (2) The powers, duties and functions conferred by this Act may be exercised in relation to an agricultural commodity throughout Canada or in any region of Canada when, in the opinion of the Governor in Council, the market situation for the agricultural commodity in that region is substantially different from the market situation therefor in the rest of Canada.

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4. (5) The Board shall comply with any directions from time to time given to it by the Governor in Council or the Minister respecting the exercise or performance of its powers, duties and functions under this Act.

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The Governor in Council may make regulations,