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Bill C-224

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The purpose of this enactment is to provide cost of production protection to family farms in cases where the weighted average input cost of products typical in or suitable for the farming zone exceeds the weighted average netback to the farm gate of such products, averaged over three years.

Costs are to be calculated on the basis of marketable product and thus will take into account bad weather, pests and other crop loss factors.

The calculations are to be based on normal crops or livestock produced for food or breeding and are to be approved by an independent auditor.

The enactment does not provide for support on product-by-product basis and is not therefore a direct product subsidy.