La Financière agricole du Québec – Farm Income Stabilization Insurance program

The complaint

A farmer has complained that La Financière agricole du Québec took away his right to the Farm Income Stabilization Insurance (ASRA) program.

La Financière issued a refusal because the citizen had not participated in a cost production study. According to him, La Financière had not sent him a letter about the refusal or the consequences of not participating in the study.

In addition to no longer qualifying for ASRA, the citizen has to pay a $19,000 penalty.

The investigation

• It was the Centre d'études sur les coûts de production en agriculture that sent the citizen a registered letter informing him that he had to participate in the study. Although the letter was picked up at the post office, the citizen says he did not read it.
• Although the letter was not sent by La Financière, the agency was referred to a number of times in the said letter.
• The citizen was never informed of the consequences of refusing to participate in the study.
• The banking institution with the mortgages of first priority on the citizen’s property should have been notified beforehand that the citizen might no longer qualify for ASRA. Since the stability of the citizen’s income would be directly affected, his ability to pay could be jeopardized. If the institution had been told ahead of time, it could have informed the citizen about the consequences of refusing to participate in the study.
• La Financière would not allow the citizen to contest the decision it made in his file.

The Québec Ombudsman’s conclusions

It is crucial that citizens have the right to have unfavourable decisions reviewed if that is what they wish. The Québec Ombudsman asked La Financière agricole du Québec to allow and carry out a review of its decision, taking into account the citizen’s arguments.

La Financière agreed to act on the Québec Ombudsman’s request.  The agency recognized citizens’ right to a review in such a situation, but the initial decision was upheld anyway.

Furthermore, the Québec Ombudsman’s intervention prompted La Financière agricole du Québec to adjust its procedures so that all creditors are notified of the last notice transmitted and have enough turnaround time to help the insured before the final deadline.