O.C. 366/2010

A.R. 176/2010

October 28, 2010


            The Lieutenant Governor in Council makes the Feeder Associations Guarantee Amendment Regulation set out in the attached Appendix.      

For Information only

Recommended by:            Minister of Agriculture and Rural Development

Authority:                             Feeder Associations Guarantee Act
                                                (section 11)


APPENDIX

Feeder Associations Guarantee Act

FEEDER ASSOCIATIONS GUARANTEE
AMENDMENT REGULATION

1   The Feeder Associations Guarantee Regulation (AR 75/98) is amended by this Regulation.

 

2   Section 1 is amended

                                 (a)    in clause (a.1) by adding “or livestock products” after “the livestock”;

                                 (b)    by repealing clause (d) and substituting the following:

                                          (d)    “feeder agreement” means

                                                    (i)    the feeder agreement and promissory note set out in the Schedule, or

                                                   (ii)    in the case of a purpose referred to in section 6(1)(b) to (d), a feeder agreement and promissory note in the form and manner required by the Minister;

 

3   Section 5(a) is amended by adding “unless approved by the Minister” after “different species”.

 

4   Section 6 is repealed and the following is substituted:

Purpose of guaranteed loan

6(1)  A feeder association may only use a guaranteed loan for the following purposes:

                                 (a)    growing or finishing livestock, or both;

                                 (b)    research or development in respect of livestock or livestock products;

                                 (c)    value‑chain activities approved by the Minister in respect of livestock or livestock products;

                                 (d)    equity or contingent interest loans approved by the Minister with respect to livestock or livestock products.

(2)  The use of the guaranteed loan is restricted to livestock or livestock products owned by the feeder association.

(3)  A feeder association may only use a guaranteed loan for a purpose referred to in subsection (1) if that purpose is specified in the feeder agreement.

(4)  A feeder association may only use a guaranteed loan for a purpose referred to in subsection (1)(b), (c) or (d) if

                                 (a)    the project or activity is approved by the Minister,

                                 (b)    the maximum amount of the loan guarantee associated with the project or activity does not exceed $3 million, and

                                 (c)    the project or activity is expected to result in a benefit to the livestock industry.

 

5   Section 7(1.2) is repealed and the following is substituted:

(1.2)  A feeder association shall not purchase livestock for a feeder if the cumulative total of the value of the livestock purchased by all feeder associations in respect of that feeder exceeds the cumulative total of the amounts per species set out in subsections (1) and (1.1).

 

6   Section 11 is amended

                                 (a)    by renumbering it as subsection (1);

                                 (b)    by adding the following after subsection (1):

(2)  Subsection (1) applies to livestock products of the livestock purchased by a feeder association with the proceeds of a guaranteed loan.

 

7   Section 17 is amended

                                 (a)    by adding the following after subsection (1):

(1.1)  Subsection (1) does not apply to a feeder agreement with respect to a guaranteed loan for a purpose referred to in section 6(1)(b) to (d).

                                 (b)    in subsection (2) by adding “, unless otherwise approved by the Minister” after “were purchased”;

                                 (c)    in subsection (3) by adding “, unless otherwise approved by the Minister” after “entered into”.

 

8   Section 18 is amended by repealing subsection (2) and substituting the following:

(2)  A feeder association may purchase feeder cows for a feeder only if

                                 (a)    the cows are not intended for breeding or calving purposes, and

                                 (b)    the feeder agreement requires sale or slaughter within 120 days or less.

 

9   This Regulation comes into force on the coming into force of the Feeder Associations Guarantee Act, SA cF‑11.1 2009.