Total Production Quota Regulations

Link to law: https://www.novascotia.ca/just/regulations/regs/ditpq.htm

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Total Production Quota Regulations
made under clause 14(1)(e) of the

Dairy Industry Act

S.N.S. 2000, c. 24

N.S. Reg. 255/2009 (July 21, 2009, effective August 1, 2009)

as amended up to N.S. Reg. 79/2014 (May 14, 2014, effective June 1, 2014)

Citation

1     These regulations may be cited as the Total Production Quota Regulations.

Interpretation

2     In these regulations,

 

“Act” means the Dairy Industry Act;

 

“assisted new producer” means a new producer who is receiving assistance under theBoard policy;

Definition amended: N.S. Reg. 132/2012.

 

“base TPQ” means

 

                         (i)     for a producer existing on August 1, 2009, the producer’s TPQ onAugust 1, 2009, as adjusted in accordance with these regulations, or

 

                         (ii)    for a new producer after August 1, 2009, the producer’s TPQ at the timeproduction begins, as adjusted in accordance with these regulations;

 

“Board policy” means a policy of the Board established under Section 5;

Definition added: N.S. Reg. 132/2012.

 

“dairy farm” includes all of the following:

 

                         (i)     land and buildings necessary for a producer’s dairy operation,

 

(ii)     a producer’s dairy and farm equipment,

 

                         (iii)   all of a producer’s cows that have calved at least once and are required tosupport the producer’s Total Production Quota as determined by theBoard;

 

“immediate family member”, in relation to a producer, means the producer’s spouse,child, grandchild, son-in-law, daughter-in-law, niece, nephew, grandson-in-law,granddaughter-in-law, or another person who stands in a relationship to a producer asdetermined by the Board;

 

“market clearing price” means the price at which TPQ is deemed bought or sold onthe TPQ exchange, as determined under Section 26;

“new producer” means a person who

 

                         (i)     is not selling milk to the Board,

 

                         (ii)    is licensed by the Board to produce milk under the Act,

 

                         (iii)   is located within a reasonable area for bulk milk pick-up, as determinedby the Board,

 

                         (iv)   has not held a licence to produce milk under the Act in the previous 24months, and

 

                         (v)    is none of the following, and has not been any of the following in theprevious 24 months:

 

                                  (A)   a director, officer, partner, shareholder or spouse of a producer,

 

                                  (B)   a corporation or partnership of which a producer, or a producer’sspouse, is a director, officer, partner or shareholder,

 

                                  (C)   a corporation or partnership that has any directors, officers, partnersor shareholders in common with a producer,

 

                                  (D)   in the opinion of the Board, otherwise related to a producer;

Definition amended (subclause (iv)): N.S. Reg. 132/2012.

Definition amended (subclause (v)): N.S. Reg. 79/2014.

 

“non-saleable adjustment quota” or “NSAQ” means a quota designated as such bythe Board and allotted by the Board in accordance with these regulations to representa portion of an individual producer’s share of the Provincial TPQ, calculated as apercentage of TPQ, and expressed in kilograms of butterfat;

 

“pay period” means the period customarily followed by the Board for payingtransporters and producers;

 

“Provincial total production quota” or “Provincial TPQ” means the total annualbutterfat required to meet the Province’s annual butterfat or equivalent milk volumerequirements and supply Provincial demand for fluid milk, as allotted under theDairy Products Marketing Regulations made under the Canadian DairyCommission Act (Canada);

 

“Quota Committee” means the committee established under Section 13;

 

“total production quota” or “TPQ” means a quota allotted by the Board inaccordance with these regulations to represent a portion of an individual producer’sshare of the Provincial TPQ expressed in kilograms of butterfat;

 

“total quota” for a producer means the sum of that producer’s TPQ and NSAQ;

“TPQ exchange” means the exchange for the buying and selling of TPQadministered by the Board in accordance with these regulations and the Interprovincial Milk Quota Regulations made under the Act; and

 

“year” means the dairy year as determined by the Board.

Section 2 amended: N.S. Reg. 132/2012.

Application of regulations

3     These regulations apply only to producers of cows’ milk.

Producer quota allotment and registration

4     (1)    TPQ and NSAQ may be allotted only to a producer who meets all of the followingcriteria:

 

                (a)    the producer is eligible for registration with the Canadian Dairy Commission;

 

                (b)    the producer meets the requirements of the Milk Producers LicensingRegulations made under the Act;

 

                (c)    except for a new producer, the producer is selling milk to the Board inaccordance with these regulations.

 

       (2)    Each producer who meets the criteria in subsection (1) must be assigned aregistration number by the Board.

 

       (3)    There must be only 1 registration number for 1 dairy farm, and 1 producer must holdonly 1 registration number regardless of whether the producer operates 1 or moredairy farms.

 

       (4)    The Board must allot only one TPQ and one NSAQ for each producer.                 

Assistance to new producers

5     The Board may establish a policy to assist some or all new producers, and the policy mayauthorize an allotment by the Board of up to 12 kg of butterfat per day of TPQ each year toa new producer selected in accordance with the policy, with the assisted new producerreturning any such allotment of TPQ to the Board over a period of time determined by theBoard.

Location of dairy farms

6     (1)    All dairy farms established after these regulations come into force must be locatedwithin a reasonable area for bulk milk pick-up, as determined by the Board.

 

       (2)    In determining whether a location is within a reasonable area for bulk milk pick-up,the Board must consider all of the following:

 

                (a)    the incremental milk transportation costs;

                (b)    any logistical constraints such as roads or bridges that would be difficult orhazardous for transporters to travel and whether adding the location wouldextend the time required for a milk pick-up route beyond the time permitted fora driver to operate a truck;

 

                (c)    any additional factors that the Board considers relevant.

 

       (3)    If, after consideration of the factors in subsection (2), the Board determines that alocation may not be within a reasonable area for bulk milk pick-up, the Board mustrefer the issue to the Advisory Committee for Transportation established under theAdvisory Committee Regulations made under the Act for advice and arecommendation.

 

       (4)    The Board will not purchase milk from a producer whose dairy farm is not within areasonable area.

Duty to comply with regulations

7     (1)    Except as provided for in these regulations, TPQ and NSAQ must not be sold,assigned, leased or transferred.

 

       (2)    If a producer contravenes these regulations, the Board may revoke or suspend any orall TPQ and NSAQ registered to the producer on any terms and conditions that theBoard considers appropriate in the circumstances.

Prohibited uses of milk shipment

8     (1)    A producer must not ship milk to a processor on the basis of either of the following:

 

                (a)    TPQ and NSAQ allotment registered in the name of another producer;

 

                (b)    the producer’s TPQ and NSAQ allotment, if the milk is from cows other thanthose located on the producer’s dairy farm.

 

       (2)    A producer must not ship milk to another producer for the purpose of shipment orreshipment to a processor.

Board order to dispose of NSAQ or TPQ

9     The Board may order a producer to dispose of the producer’s NSAQ first and then theirTPQ, after the producer’s allocation of NSAQ has been reduced to zero, in either of thefollowing circumstances:

 

                (a)    the producer’s production is too low to provide satisfactory cooling, samplingor measurement;

 

                (b)    the producer has shipped at an average daily rate of less than 110 L per day for2 or more consecutive pay periods.

Assignment of TPQ

10   (1)    In this Section, “recognized lending institution” means any of the following:

                 (a)    a bank listed in Schedule I or Schedule II of the Bank Act (Canada);

 

                (b)    a credit union to which the Credit Union Act applies;

 

                (c)    the Nova Scotia Farm Loan Board;

 

                (d)    Farm Credit Canada;

 

                (e)    a lender approved by the Board.

 

       (2)    On receiving a completed assignment of TPQ in a form approved by the Board,made between a recognized lending institution and a producer for the purpose of asecured transaction, the Board may consent to the assignment on any terms andconditions that the Board considers appropriate.

 

       (3)    The consent of the Board to an assignment of TPQ does not in any circumstances,nor is it deemed to, warrant the validity of the assignment, and the Board is not liablefor any loss or damage that may be suffered by the lending institution as a result ofits reliance on the assignment.

Subsection 10(4) repealed: N.S. Reg. 112/2010.

Calculating producer payment and quota utilization

11   To calculate producer payment and quota utilization, each producer’s monthly total quotais calculated by multiplying the producer’s daily total quota by the number of days of milkproduction shipped during that month.

Adjusting Provincial total production quota

12   (1)    The Board may make an interim adjustment to Provincial TPQ to ensure that anadequate supply of milk is available to meet market requirements.

 

       (2)    After consulting with the Quota Committee, the Board may allot any adjustment tothe Provincial TPQ to producers based on the following conditions:

 

                (a)    if a producer has NSAQ, an increase in Provincial TPQ will be allotted to theirNSAQ as a percentage of the producer’s TPQ as of the date of the adjustment;

 

                (b)    if a producer does not have NSAQ and their TPQ is less than their base TPQ,an increase in Provincial TPQ will be allotted as follows:

 

                         (i)     first to their TPQ as a percentage of their TPQ holdings as of the date ofthe adjustment until their TPQ is equal to their base TPQ, and

 

                         (ii)    then to their NSAQ;

 

                (c)    if a producer has NSAQ, a decrease in Provincial TPQ will be deducted asfollows:

 

                         (i)     first from their NSAQ allotment as a percentage of their TPQ as of thedate of the adjustment, and

 

                         (ii)    then from their TPQ after the producer’s allotment of NSAQ has beenreduced to zero;

 

                (d)    if a producer does not have NSAQ, a decrease in Provincial TPQ will bededucted from their TPQ as a percentage of the producer’s TPQ as of the dateof the adjustment.

Quota Committee

13   (1)    A Provincial quota committee must be established to administer Sections 15, 15A,29 and 30 on behalf of the Board, and to make recommendations to the Board on theremainder of these regulations.

Subsection 13(1) amended: N.S. Reg. 79/2014.

 

       (2)    The Quota Committee is composed of the Executive Committee of the Board.

 

       (3)    Each member of the Quota Committee has one vote.

 

       (4)    The Quota Committee must appoint one of its members as Chair.

TPQ flexibility for individual producers

14   (1)    In this Section, “cumulative over-production” refers to the amount by which aproducer’s cumulative production exceeds their cumulative total quota and“cumulative under-production” refers to the amount by which a producer’scumulative production is less than their cumulative total quota.

 

       (2)    For all producers whose cumulative over-production is equal to or less than 10 timesthe producer’s daily total quota on August 1, 2009, the over-production limit is 10times their daily total quota.

 

       (3)    For all producers whose cumulative over-production exceeds 10 times their dailytotal quota, the over-production limit is equal to their cumulative over-production.

 

       (4)    For producers described in [subsection] (3), in months their production is less thantheir daily total quota, taking into account any necessary adjustments for leased quotaunder Sections 29 and 30, the producer’s over-production limit is reduced by theamount of the under-production, and when the cumulative over-production is equalto or less than 10 times the daily total quota, the over-production limit will be 10times their daily total quota.

 

       (5)    The portion of a producer’s cumulative over-production that exceeds theover-production limit in subsection (2) or (3), as applicable, is classed as over-quotaproduction.

 

       (6)    The limit of cumulative under-production is 30 times the daily total quota.

 

       (7)    Under-production up to the limit in subsection (6) may be carried forwardindefinitely.

 

       (8)    Under-production in excess of the limit in subsection (6) must not be carriedforward.

 

       (9)    When a producer sells their entire TPQ on the TPQ exchange,

 

                (a)    all cumulative over-production at the time of sale is classed as over-quotaproduction; and

 

                (b)    the selling producer must reimburse the Board for all over-quota productiondescribed in clause (a), based on the difference between the most recentcomponent prices and the over-quota component prices.

Transfers of TPQ or NSAQ

15   (1)    A transfer of TPQ or NSAQ is not effective until authorized by the Board.

 

       (2)    A transfer of TPQ must take place on the TPQ exchange, except in any of thefollowing circumstances:

 

                (a)    a transfer of TPQ with a dairy farm to a new producer or to an immediatefamily member;

 

                (b)    a transfer of TPQ from a parent to a child who is a new producer at the time ofthe transfer;

Clause 15(2)(b) replaced: N.S. Reg. 79/2014.

 

                (c)    a transfer by a producer of all of their TPQ to a corporation

 

                         (i)     if the transferring producer is an individual and the only shareholder inthe corporation is the transferring producer; or

 

                         (ii)     if the transferring producer is a partnership and the only shareholders inthe corporation are the partners of the transferring producer;

 

                (d)    a transfer by a producer of all of their TPQ to a partnership in which thetransferring producer is a partner, if the partnership does not hold any TPQ atthe time of the transfer, and holds only the TPQ of the transferring producerimmediately after the transfer;

 

                (e)    a transfer of TPQ by a corporation to 1 or more of its shareholders on the saleof their shares in the corporation, or on the wind-up or dissolution of thecorporation;

 

                (f)     a transfer of TPQ by a partnership to 1 or more of its partners on the sale oftheir interest in the partnership, or on the wind-up or dissolution of thepartnership.

 

       (3)    For all TPQ transfers, the formula for base TPQ is

base TPQ transferred = TB(a) × transferred TPQ/T(a)

 

in which

 

TB(a) = transferor’s base TPQ immediately before the transfer

T(a) = transferor’s TPQ immediately before the transfer

transferred TPQ = the TPQ being transferred

 

       (4)    For all TPQ transfer[s], the formula for NSAQ is

 

NSAQ transferred = TNSAQ(a) × transferred TPQ/T(a)

 

in which

 

TNSAQ(a) = transferor’s NSAQ immediately before the transfer

transferred TPQ = the TPQ being transferred

T(a) = transferor’s TPQ immediately before the transfer

 

       (5)    Except for the transfer of NSAQ as set out in subsection (4), no transfers of NSAQare permitted.

 

       (6)    A new producer or immediate family member who purchases or acquires a dairyfarm must acquire the TPQ allotted to the previous owner.

 

       (7)    Except as otherwise approved by the Board, all transfers of TPQ and NSAQ mustoccur at the beginning of a pay period.

Corporate amalgamations not permitted

15ATwo or more producers that are corporations are not permitted to amalgamate to continueas one corporation.

Section 15A added: N.S. Reg. 79/2014.

 

Minimum TPQ

16   (1)    A producer must hold total quota of at least 10 kg of butterfat per day.

 

       (2)    If a producer’s total quota falls below 10 kg of butterfat per day, the producer mustacquire enough TPQ and NSAQ within 1 month to hold total quota of at least 10 kgof butterfat per day.

 

       (3)    If a producer fails to comply with subsection (2), the Board must not purchase theproducer’s milk, and the producer must either acquire TPQ and NSAQ until theyhave total quota of at least 10 kg of butterfat per day, or sell their TPQ in accordancewith Section 17.

 

       (4)    This Section does not apply to any of the following:

                (a)    producers who held total quota of less than 10 kg of butterfat on August 1,2009;

Clause 16(4)(a) amended: N.S. Reg. 112/2010.

 

                (b)    assisted new producers;

Clause 16(4)(b) amended: N.S. Reg. 132/2012.

 

                (c)    producers who were assisted new producers in the previous 12 months.

Clause 16(4)(c) amended: N.S. Reg. 132/2012.

 

TPQ and NSAQ of producer who ceases producing

17   (1)    A producer who ceases production must sell their TPQ before the 5th TPQ exchangeafter the date of the producer’s last milk shipment, except that if the 4th TPQexchange after the date of the last milk shipment is pro-rated for sellers, the producermust sell all their remaining TPQ in the next TPQ exchange that is not pro-rated forsellers.

 

       (2)    If a producer fails to comply with the time limits set out in subsection (1), their TPQand NSAQ must be cancelled by the Board.

 

2-step transfers

18   (1)    If authorized by the Board, a producer may complete a transfer to a partnership orcorporation under subsection 15(2) in 2 steps, with part of the TPQ and NSAQ beingtransferred in step 1 and the balance being transferred in step 2.

 

       (2)    During the period between step 1 and step 2 of a 2-step transfer,

 

                (a)    the producer and the partnership or corporation are deemed to be 1 producer;and

 

                (b)    there is deemed to be 1 dairy farm between the producer and the partnership orcorporation.

 

       (3)    A producer must undertake a 2-step transfer by

 

                (a)    submitting a written request for approval to the Board;

 

                (b)    completing the 2-step transfer of the dairy farm within no more than 5 businessdays; and

 

                (c)    completing the 2 steps within the same calendar month.

Operation of TPQ exchange

19   (1)    A producer, including an assisted new producer but excluding a new producer whois not assisted, or an authorized designate of a producer, may offer to sell or buyTPQ on a TPQ exchange.

Subsection 19(1) amended: N.S. Reg. 132/2012.

 

       (2)    A TPQ exchange may operate in any month of the year.

 

       (3)    TPQ is transacted on a TPQ exchange in units of kilograms of butterfat per day.

 

Offers to buy and sell

20   (1)    A producer wishing to participate on a TPQ exchange must submit either 1 offer tobuy TPQ or 1 offer to sell TPQ, and the offer must be in a form approved by theBoard and include all of the following information:

 

                (a)    whether the offer is to buy or sell TPQ;

 

                (b)    the amount of TPQ the offer is for, expressed as a number of kilograms or, fora portion of a kilogram, expressed in hundredths of a kilogram;

 

                (c)    the offer price per kilogram rounded to the nearest dollar value;

 

                (d)    the name of the producer, their signature, if applicable, and their producerregistration number;

 

                (e)    the month of the TPQ exchange to which the offer applies.

Subsection 20(1) amended: N.S. Reg. 132/2012.

 

       (2)    Each offer to buy TPQ must be accompanied by a non-refundable service fee of$15.00 plus any applicable taxes.

Subsection 20(2) replaced: N.S. Reg. 132/2012.

 

       (3)    Each offer to sell TPQ must be accompanied by a non-refundable service fee, asfollows:

 

                                  TPQ offered for sale    Fee (plus any applicable taxes)

Up to 1.0 kg$100.00

1.01 to 10 kg$200.00

More than 10 kg$300.00

Subsection 20(3) amended: N.S. Reg. 132/2012.

 

       (4)    An offer to buy or sell TPQ must be received by the Board by the last business daybefore the 14th day of the month of the TPQ exchange.

Subsection 20(4) amended: N.S. Reg. 132/2012.

 

       (5)    A producer must not offer to sell and buy TPQ on the same TPQ exchange.

Subsection 20(5) amended: N.S. Reg. 132/2012.

 

       (6)    Subsection (5) does not apply to an assignee under an assignment of TPQ, to whichthe Board has consented, who places an offer to sell assigned TPQ on the TPQexchange.

 

       (7)    The Board must reject the offer of any producer to buy an amount of TPQ on theTPQ exchange greater than 10% of the producer’s total quota at the time the offer issubmitted.

 

       (8)    Subsection (7) does not apply to an assisted new producer for the period of timeprescribed in the Board policy.

Subsection 20(8) amended: N.S. Reg. 132/2012.

Market clearing price cap

21   The Board must reject any offer to buy or offer to sell TPQ on a TPQ exchange at a pricegreater than $25 000 per kilogram of TPQ.

Section 21 amended: N.S. Reg. 132/2012.

Section 22 repealed: N.S. Reg. 132/2012.

Withdrawal or amendment of offer

23   A producer may withdraw or amend an offer by submitting the amendment in a formapproved by the Board by no later than the deadline specified in subsection 20(4).

TPQ exchange transactions

24   (1)    In this Section, “banking day” means a day between Monday and Friday, inclusive,and on which at least half of the banks in the Province are open for business.

Subsection 24(1) replaced: N.S. Reg. 132/2012.

 

       (1A) On or before the 3rd-last banking day of the month of a TPQ exchange, eachproducer with a successful buy offer in that TPQ exchange must pay the Board infull for the quantity of TPQ that the producer bought.

Subsection 24(1A) added: N.S. Reg. 132/2012.

 

       (2)    Before the 10th day of the month immediately after the month of a TPQ exchange,the Board must pay producers any money due to them as a result of selling TPQ onthat TPQ exchange.

 

       (3)    If a producer does not pay as required by subsection (1A), or if a cheque that theproducer submits to the Board is dishonoured by the producer’s bank,

 

                (a)    the TPQ bought by the producer returns to the Board and may be sold on alater TPQ exchange; and

 

                (b)    except as provided in subsection (6), all of the following apply to the producer:

 

                         (i)     the producer is liable for all costs incurred by the Board resulting fromthe non-payment or dishonoured cheque, and the costs must be paidbefore any of the producer’s future offers to buy or sell TPQ on theexchange are accepted,

 

                         (ii)    the producer is not eligible to buy TPQ on the exchange for a period of12 months following full reimbursement of the costs referred to insubsection [subclause] (i),

 

                         (iii)   for a period of 5 years from the date the producer becomes eligible tobuy TPQ on the exchange again under subclause (ii), the producer mustpay for TPQ only with a bank draft, direct deposit or wire transfer.

Subsection 24(3) added: N.S. Reg. 132/2012.

 

       (4)    No later than 30 days after the date a producer’s payment is due under subsection(1A), the producer may submit a request in writing to the board of directors of theBoard requesting that subclauses (3)(b)(ii) and (iii) not apply to the producer.

Subsection 24(4) added: N.S. Reg. 132/2012.

 

       (5)    On receipt of a request from a producer under subsection (4), the board of directorsof the Board must give the producer a reasonable opportunity to make submissionseither in writing or in person to the board of directors of the Board.

Subsection 24(5) added: N.S. Reg. 132/2012.

 

       (6)    If, after giving the producer a reasonable opportunity to make submissions, the boardof directors of the Board is satisfied that the non-payment or dishonoured chequewas the result of circumstances beyond the control of the producer, and not the resultof any fault or negligence by the producer, subclauses (3)(b)(ii) and (iii) do not applyto the producer.

Subsection 24(6) added: N.S. Reg. 132/2012.

Canceling TPQ exchange

25   (1)    The Board may cancel a TPQ exchange for a particular pay period if, in the Board’sopinion,

 

                (a)    there are insufficient offers; or

                (b)    it is advisable or necessary to do so.

 

       (2)    A producer who submits an offer for a TPQ exchange that is cancelled may resubmittheir original offer or an amended offer for a later exchange.

Clearing TPQ exchange

26   (1)    In this Section, “exiting producer” means a producer whose total volume of TPQ is10 kg or less of butterfat per day and who has submitted an offer to sell their entireTPQ on the TPQ exchange.

 

       (2)    At the time a particular TPQ exchange is to operate, the Board must match thevolumes and prices that have been submitted by the producers in the offers to selland buy and must determine the point at which offers to buy and offers to sell mostclosely match on the basis of price and volume according to the following table:

TPQ

$ Price

Lowest toHighest

KilogramsOfferedFor Saleat Price

CumulativeSales

Difference

CumulativeBuys

KilogramsOffered toBuy atPrice

 

       (3)    The procedure described in this Section is known as “clearing” the TPQ exchange.

 

       (4)    The market clearing price as determined by clearing the TPQ exchange is the pricethat TPQ is deemed to be sold or bought for on the TPQ exchange.

 

       (5)    If a producer offers to buy TPQ at a price equal to or higher than the market clearingprice, then that offer is deemed to be successful and the transaction will take place atthe market clearing price.

 

       (6)    If a producer offers to sell TPQ at a price equal to or lower than the market clearingprice, then that offer is deemed to be successful and the transaction will take place atthe market clearing price.

 

       (7)    If, at the market clearing price, the cumulative volume of the successful offers to buyis greater than the cumulative volume of the successful offers to sell, the TPQ mustbe distributed to buyers according to the following order of priority:

 

                (a)    first, if there is a successful buy offer from an assisted new producer who is intheir quota acquisition period as described in the Board policy and,immediately before the TPQ exchange, held less TPQ than the buyer prorateexemption amount prescribed in the Board policy, the TPQ must be allocatedto the assisted new producer until 1 of the following conditions is satisfied:

 

                         (i)     all of the TPQ is allocated to the assisted new producer,

 

                         (ii)    the assisted new producer’s buy offer is filled,

 

                         (iii)   the TPQ held by the assisted new producer immediately before the TPQexchange plus the amount of TPQ bought by the producer is equal to thebuyer prorate exemption amount prescribed in the Board policy;

 

                (b)    second, a portion of any remaining TPQ must, subject to subsection (8), beallocated to each producer with an unsatisfied successful buy offer throughiteration of TPQ in increments of 0.01 kg, as follows:

 

                         (i)     in each allocation round, each producer whose buy offer remainsunsatisfied must be allocated 0.01 kg of TPQ,

 

                         (ii)    allocation rounds must continue until the total allocation at the end of acompleted round is at least 50% of the TPQ that was not allocated underclause (a), and then the remaining unallocated TPQ must be allocated byproration in accordance with clause (c),

 

                         (iii)   if there is insufficient unallocated TPQ to allow for at least 1 completeallocation round, an allocation round must not occur and the remainingunallocated TPQ must be allocated by proration in accordance withclause (c);

 

                (c)    third, any remaining TPQ must, subject to subsection (8), be prorated to theextent necessary to balance the exchange, so that each producer who has anunsatisfied successful buy offer buys the volume of TPQ calculated as follows:

 

Volume bought = volume of unsatisfied successful buy offer ×

(remaining cumulative volume of successful offers to sell)

(remaining cumulative volume of successful offers to buy)

Subsection 26(7) replaced: N.S. Reg. 132/2012.

 

       (8)    If an assisted new producer acquires TPQ under clause (7)(a), and part of theirsuccessful buy offer remains unsatisfied, the assisted new producer must not beallocated any TPQ under clause (7)(b) or (c) on that exchange.

Subsection 26(8) replaced: N.S. Reg. 132/2012.

Subsection 26(9) repealed: N.S. Reg. 132/2012.

 

       (10)  Subject to subsections (11) and (12), if, at the market clearing price, the cumulativevolume of successful offers to sell is greater than the cumulative volume of thesuccessful offers to buy, the TPQ sold at the market clearing price must be pro-ratedfor sellers to the extent necessary to balance the exchange, so that each producer whohas a successful offer to sell sells the volume of TPQ calculated as follows:

 

Volume sold = volume producer offered for sale ×

(cumulative volume of successful offers to buy)

(cumulative volume of successful offers to sell)

 

       (11)  If a TPQ exchange would otherwise be pro-rated for sellers, and one or more of theproducers who has a successful offer to sell is an exiting producer, then, before pro-rating the exchange,

 

                (a)    all of the TPQ offered for sale by the exiting producer or producers who havesuccessful offers to sell must be sold; and

 

                (b)    the exchange must then be pro-rated for sellers, based upon the remainingcumulative volume offered for sale and the remaining cumulative volume ofsuccessful offers to buy at the market clearing price.

 

       (12)  If the total volume of TPQ offered for sale by all exiting producers who havesuccessful offers to sell is greater than the cumulative volume of successful offers tobuy at the market clearing price,

 

                (a)    the total volume of TPQ offered for sale by the exiting producers must be pro-rated for exiting sellers; and

 

                (b)    no other TPQ must be sold at that exchange.

Subsection 26(13) repealed: N.S. Reg. 132/2012.

Notifying participants of results of offers

27   The Board must individually notify each participant on a TPQ exchange in writing ofwhether or not their offer was successful.

When transfer of quota effective

28   TPQ bought on a TPQ exchange is transferred to the successful buyer effective at thebeginning of the following pay period.

Leasing TPQ

29   (1)    A TPQ lease is not effective until it is approved by the Board.

 

       (2)    Only an active producer may enter into a lease of TPQ and, except as provided insubsection 30(6), the maximum amount of TPQ that a producer may lease is 25% oftheir total quota.

 

       (3)    A TPQ lease must be submitted to the Board in writing and on the standard formsupplied by the Board, and must be accompanied by payment of a non-refundableadministrative fee in an amount set by the Board.

 

       (4)    A TPQ lease starts at the beginning of a pay period and ends on the last day of thatsame pay period.

 

       (5)    Leased TPQ reverts to the lessor on expiry of the lease.

 

       (6)    Any adjustment to Provincial TPQ made under Section 12 applies to all TPQ leased.

 

       (7)    Subject to subsection (6), on the expiry of a lease, the adjusted amount of the leasedTPQ will be returned to the lessor.

 

       (8)    A producer must not be both a lessor and a lessee at the same time.

Leasing TPQ in event of catastrophe

30   (1)    In this Section,“catastrophe” includes

 

                (a)    severe injury to, or the illness or death of, a producer or a producer’s dairyherd; and

 

                (b)    destruction of a producer’s dairy facilities.

 

       (2)    If, because of a catastrophe, a producer reduces production or discontinuesproduction temporarily, the producer may lease up to 100% of their total quota to 1or more producers.

 

       (3)    A lease under this Section must be submitted in accordance with subsection 29(3) assoon as possible and no later than the end of the pay period immediately before thestart of the lease, and must include evidence of the catastrophe that is satisfactory tothe Board.

 

       (4)    The Board may approve a lease under this Section for up to 6 months, and mayallow the lease to be renewed for up to a further 6 months.

 

       (5)     Any renewals or extensions of a lease beyond 12 months must be decided by theBoard on a month-to-month basis.

        (6)    If a producer is milking cows from the dairy herd associated with TPQ leased underthis Section, the Board may allow the producer to also lease TPQ under Section 29,but the TPQ leased under Section 29 must not exceed the maximum set out insubsection 29(2).

 

       (7)    If a producer is not milking cows from the dairy herd associated with TPQ leasedunder this Section, the total amount of TPQ leased by the producer under thisSection and Section 29 must not exceed the maximum set out in subsection 29(2).

 

Over-quota milk price

31   All shipments of over-quota production must be paid at the over-quota price for the payperiod in which it is produced.

Additional production days

32   (1)    A producer may receive additional production days of TPQ if the producer has fullyutilized their TPQ, NSAQ and any TPQ leased to them under Section 29 for thecurrent month.

 

       (2)    Despite the allowance for carrying over under-production in subsection 14(6), anyadditional monthly allocation of TPQ that is not utilized in the month in which it isissued must be carried forward for future use, unless the Board decides otherwise.

 

       (3)    A producer who is leasing TPQ to another producer under Section 29 is not eligibleto receive additional production days of TPQ for the current month.

 

Dalhousie University exemption

33   Subsections 14(6), (7) and (8), respecting the limit of cumulative under-production and thecarrying forward of under-production, do not apply to Dalhousie University.

Section 33 replaced: N.S. Reg. 132/2012.

Schedule “A” repealed: N.S. Reg. 132/2012.