Protecting Farmland and Modernizing Farm Rules

Summary#

• Bill 109 is a wide-ranging agriculture bill. It aims to protect Ontario farmland, modernize food safety and dairy rules, strengthen payment protection for farmers, and update oversight bodies.

• It creates a new Farmland Security Act to restrict who can buy Ontario farmland. It also moves milk and dairy safety under the Food Safety and Quality Act, and updates rules for beef cattle, farm disputes, farmer payments, veterinarians, and the Ontario Food Terminal.

• Key changes:

  • New Farmland Security Act would block “designated persons” (including most foreign nationals and others set by regulation) from buying Ontario farmland unless they get permission or qualify for an exemption. Land registrars must refuse registrations without required information. Strong inspection and penalty tools apply.
  • Milk and dairy plant safety shift from the Milk Act to the Food Safety and Quality Act. A stronger administrative penalty system and “delegated authority” model let approved organizations carry out parts of the law.
  • Milk Act refocuses on marketing. Milk and milk products must be paid based on fat, protein, and other solids (or other approved bases). Municipalities cannot pass by-laws forcing milk products to be local.
  • Beef Cattle Marketing Act: producers who sell cattle or send cattle for custom processing are treated as licensed and must pay set fees. Producers can get a refund of those fees for up to two head per year if custom processed for personal use. Old carcass-weight purchase listing rules are repealed.
  • The Normal Farm Practices Protection Board’s work moves to the Agriculture and Agri-Food Protection Tribunal, which may require mediation before hearings.
  • Protecting Farmers from Non-Payment Act: tighter rules for written purchase and storage agreements, weigh tickets and storage receipts, trust funds for sales proceeds, freeze orders, and administrative penalties. New rules cover collection and grading of certain designated products.
  • Ontario Food Terminal Board becomes an agent of the Crown and can build capital reserves. New liability protections are added.
  • Veterinary Professionals Act: clearer powers to act if licence applications included false or misleading information; possible exemptions from facility accreditation in set cases; broader inspection powers, including for ancillary services.

What it means for you#

• Farmers and ranchers

  • If you sell cattle or send cattle for custom processing, you are treated as licensed and must pay the set licence fees/levies. You may request a refund for fees on up to two head a year if the meat is for your household.
  • Dairy producers and processors will see safety and plant rules under the Food Safety and Quality Act, with possible new delegated authorities and updated penalties.
  • Payments for milk and milk products must follow component-based pay (fat, proteins, other solids) or other approved bases.
  • Stronger protections if a dealer or storage operator doesn’t pay or deliver. You will get clearer written agreements, weigh tickets, storage receipts, and access to trust funds and claims if things go wrong.
  • For some crops/products the government designates, there will be required receipts at collection, grading rules, and grading statements so you can track quantity, grade, and price.

• People looking to buy Ontario farmland

  • If you are a foreign national or otherwise fall into a “designated person” category set by regulation, you generally cannot buy farmland unless you receive permission or fit an exemption. Breaking the rules can lead to orders to sell the land and large fines.
  • Anyone registering a farmland deal must submit required information, or the land registry will refuse to register it.

• Dealers, buyers, and storage operators

  • You must use written agreements and follow timing rules for payment. For certain products, you cannot refuse to buy only because payment isn’t deferred.
  • Storage operators must issue weigh tickets and storage receipts and keep enough product to match outstanding receipts, or obtain a shortfall permit.
  • Funds and trust rules are stricter. Freeze orders and administrative penalties may apply if you don’t comply.
  • Licensing and security requirements can be updated by regulation.

• Processors and plants

  • Dairy plant and product safety are under the Food Safety and Quality Act. You may deal with a delegated authority, new forms, and updated penalties.

• Local governments

  • You cannot require by by-law that milk products sold in your municipality be produced or processed locally.

• Veterinarians and clinics

  • The regulator has stronger tools if licence applications included false or misleading information, including interim suspensions and licence cancellation.
  • Some activities or locations may be exempt from facility accreditation by regulation.
  • Inspectors and assessors can enter prescribed buildings, vehicles, or land tied to veterinary practice and ancillary services (like boarding or grooming), but not private dwellings without a warrant.

• Ontario Food Terminal users

  • The Terminal’s board is now a Crown agent and can maintain capital funds. New liability protections apply to the Crown and board.

Expenses#

Estimated fiscal impact: No publicly available information.

• The bill shifts duties among ministries, tribunals, and delegated authorities, which could change administrative costs, but no clear public cost estimate is provided.

Proponents' View#

• Protects Ontario farmland from speculative or foreign control, helping keep land available for farmers.
• Streamlines dairy oversight by moving safety and plant rules under one food safety law, reducing duplication and modernizing enforcement.
• Strengthens fair payment and delivery protections so farmers are paid on time and not left holding losses if a buyer or storage operator fails.
• Gives simple, traceable paperwork (receipts, grading statements) that improves transparency in farm product sales.
• Modernizes dispute resolution by placing normal farm practice cases with a single, specialized tribunal and encouraging mediation.
• Updates veterinary regulation to protect animals and the public when licence applications include false information.
• Clarifies the Ontario Food Terminal’s status and lets it plan and fund capital needs.

Opponents' View#

• Farmland restrictions rely on definitions set later by regulation, creating uncertainty for investors, new Canadians, and businesses with complex ownership.
• Broad inspection and data-collection powers, plus high fines and “no compensation” clauses, may be seen as heavy-handed or risky for privacy and property rights.
• New fees and paperwork (e.g., cattle custom processing levies, mandatory receipts) could add costs or red tape for small producers and local processors.
• Moving dairy safety from the Milk Act to the Food Safety and Quality Act and using delegated authorities may blur accountability or reduce direct government oversight.
• Strong enforcement tools (freeze orders, mandatory administrative penalties) could be disproportionate for minor mistakes.
• Municipalities lose flexibility to favor local milk products through by-laws.