Grain Financial Protection Program

By mmuise
Description:

The Grain Financial Protection Program protects producers who sell grains and oilseeds to licensed dealers and producers or owners who store grains and oilseeds at licensed elevators. The program has both a licensing and inspection component and a financial protection component.


Comments on Funding:

Coverage is between 20% and 95%, depending on the length of deferral after the tenth trading day following sales on delivery, or after 2 p.m. on the fifth trading day following sales from storage. The length of defferal must be up to 180 calendar days.

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • be producers or owners;
  • sell canola, grain corn, soybeans or wheat to licensed dealers, or store these crops with licensed elevators.
    Producer responsibilities
    I. Selling crops:
  • Sell crops only to licensed dealers.
  • Cash their cheques within five banking days of the date the cheque is made payable.
  • Notify the chief inspector immediately by calling Agricorp at 1-888-247-4999 if their dealer fails to meet the required payment timelines (see Grain dealer responsibilities below).
    Storing crops:
  • Store crops only at licensed elevator operators.
  • Ensure that they receive weigh tickets for each delivery.
  • Ensure that they receive a grain storage receipt within 45 trading days of delivery, or within five trading days of request.
  • Ensure that their grain storage receipt is signed by the elevator operator and that it shows the expiry date, charges and any other arrangements they made with the elevator operator.
  • Notify the chief inspector immediately by calling Agricorp at 1-888-247-4999 if their elevator operator fails to meet storage obligations.
    Grain dealer responsibilities:
  • Hold and post a valid grain dealer licence in their establishment.
  • Deduct their checkoff fees and remit them to the appropriate commodity organizations each month.
  • Make payments to producers within the required timelines: a) For sales upon delivery: Issue payment within 10 trading days or by the date specified in a deferred payment arrangement.
    b) For sales out of storage: Issue payment by 2 p.m. on the fifth trading day after the sale or by the date specified in a deferred payment arrangement.
    c) For basis contracts: Issue a minimum of 60 per cent of the market price within required timelines, as per payment arrangement (e.g., deferred, upon delivery or out of storage).
    d) For deferred payment arrangements: Provide producer or owner with written confirmation of any deferred payment arrangements within five trading days of the arrangement date.
    Elevator operator responsibilities:
  • Hold and post a valid grain elevator operator licence in your establishment.
  • Issue a weigh ticket for each load of grain when you deliver the crop.
  • Issue grain storage receipts within 45 trading days of first delivery, or within five trading days of request. Receipts must be signed by an authorized representative and indicate expiry date, charges and any other agreements you have entered into.
  • Release the grain to owner upon request.
Application Steps:

Applicants (producers or owners) must submit a claim to the Grain Financial Protection Board to cover a portion of their loss.



When producers sell grain to a licensed dealer, they pay a fee known as a “checkoff.” The checkoff goes into a fund managed by the Grain Financial Protection Board to protect the financial interests of producers or owners of canola, grain corn, soybeans or wheat. If the dealer becomes insolvent, they can make a claim for the grain for which they have not received payment.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

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About the author
mmuise