Closing Loopholes in Chicken Quota Ownership

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Nova Scotia Regulation 216/2026 amends the Chicken Farmers of Nova Scotia Regulations, N.S. Reg. 109/2020, under the Natural Products Act. Made by Chicken Farmers of Nova Scotia. The changes revise the rules governing ownership of chicken production quota, including limits on individual holdings, associated persons, family relationships, and quota transfers.

The regulations replace the definition of “aggregate base quota” with “aggregate interest in base quota,” defined as the combined interests held by a person and all other persons associated with them. The definition of “beneficial shareholder” is also revised to include anyone who owns one or more shares of any class issued by a corporation, whether voting or non-voting, regardless of whether that person appears as the registered owner in the corporation’s membership register.

Section 6 is replaced with provisions requiring the Commodity Board to aggregate the base quota interests of associated persons. Where two or more persons holding quota interests are associated, each person’s interest is treated as though it were held by all associated persons for the purpose of calculating their combined holdings. If persons become associated and their combined interests exceed the applicable maximum, the Commodity Board may reduce the base quota held by any of them to bring the aggregate interest within the prescribed limit.

The amendments establish a general maximum individual interest in base quota of 5% of the total base quota registered by the Commodity Board. Subject to specified exceptions, no person may hold an aggregate interest exceeding 5% of the total registered base quota. An exception permits associated persons within a parent-child or grandparent-grandchild relationship to hold a combined maximum of 10%. This calculation encompasses parents, grandparents, children, and grandchildren, including qualifying corporations, partnerships, or trusts in which the specified family members and members of their immediate families are the only holders of legal or beneficial interests.

Transitional provisions protect existing holdings. A person whose aggregate interest exceeds the applicable maximum on October 1, 2026, is not required to reduce that interest solely because of the new limit. However, anyone exceeding the applicable 5% or 10% maximum cannot acquire additional base quota through a transfer. Similar restrictions apply when a producer exceeds the individual or aggregate limit because of an authorized extra-provincial production or marketing amount.

The amendments also strengthen oversight of quota transfers. No transfer is effective unless the Commodity Board is satisfied that the requirements of Section 8 have been met. Proposed transfers must be rejected where they would cause a person’s aggregate interest to exceed the prescribed maximum.

Nova Scotia (216/2026) October 20, 2026
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