APPLICATION PACKAGE

The application package for the 2000-2001 program is being offered via the OCPA web site in .pdf format. You must have Adobe Acrobat Reader to be able to open the file below. Follow this link to obtain Adobe Acrobat Reader free of charge. Please return the application form to OCPA at 90 Woodlawn Road West, Guelph, Ontario N1H 1B2. Please print this page to ensure you have all of the necessary information to complete the application and are informed of the conditions, eligibility, exclusions and requirements of the Corn Advance Payment Program.

Download Corn Advance Payment Application Form

IMPORTANT SPECIAL INSTRUCTIONS: The Corn Advance Payment Application Form is a legal document. You must return all 11 pages for your application to be considered. All submissions using the application downloaded from this site must be printed on white 8½ x 11 bond paper and must be printed on a laser printer. Applications submitted using any other paper and/or printed by a printer other than a laser printer will not be accepted.

THE ADMINISTRATION FEE AND STORAGE INSPECTION FEE (IF APPLICABLE) WILL BE DEDUCTED FROM YOUR ADVANCE CHEQUE. PLEASE DO NOT SEND CHEQUE WITH APPLICATION.

We regret that incomplete application forms must be returned to you, since these are legal loan documents.

Purchased Corn Not Eligible - Farmer must have produced corn in 2000. Purchased corn is not eligible.

Farm-Fed Corn

PLEASE NOTE: 1) regardless of feeding schedule, advance repayments must begin on the first day of the first month following receipt of the advance application; 2) post-dated repayment cheques must begin no later than Mar. 1st; 3) the repayments must be of an equal amount each month

IMPORTANT: Whole plant silage and ground ear corn are not eligible for the Corn Advance Payment Program.

Agriculture Canada has approved issuance of advance payments for corn stored and then fed on the farm. A farm-fed application form is included with the advance payment application package. Repayment details are specified on page 9 of the application form.

If the producer disposes of more corn, including any sales, in any month than is specified on page 10, an additional monthly repayment, at $58.00 per tonne for the extra corn disposed of, must be remitted within 10 days of month-end to the Ontario Corn Producers' Association.

Corn to be farm-fed must be declared on the application at the time of applying for the advance. All corn on which an advance is received must be completely sold or fed by September 30, 2001 in order to retain the interest-free provision. Any corn still in storage after September 30 which will be fed or sold after September 30, and for which a direct payment is received will be charged interest on the amount still in storage at an annual rate of prime plus 1 3/4%, calculated daily and compounded monthly. If in question, an inspection may be performed for audit purposes.

Both the main application and completed farm-fed agreement must be returned if you are applying for an advance on farm-fed corn, along with post-dated cheques.

OCPA reserves the right to charge up to $50.00 for an NSF cheque.

PROCEDURES FOR INSPECTION OF CORN STORED ON FARM

OCPA is required to inspect first-time applicant's storage before an advance is issued. In order to issue advances on a more timely basis, for producers who have received an advance in a previous year OCPA can inspect the storage after issuance of the advance. An alternative to OCPA inspecting storage after the advance issuance is the producer submitting a copy of the crop insurance/market revenue inspection report to OCPA. If producers do not send a copy of the inspection report to OCPA prior to January 31, 2001, the $35 inspection fee charge will be deducted from their 2% holdback cheque and an inspection will be conducted. Anyone having a copy of the Crop Insurance/Market Revenue Inspection Report at time of application should send it in with the application (it will speed up processing and could save you money). However, you do not need to delay sending in your application if you do not have the inspection form. OCPA has contracted with AgriCorp to do on-farm inspections.

2000-2001 CORN ADVANCE PAYMENT PROGRAM
FURTHER DETAILS

2000 Administration Fees:
Loan Amount	Elevator-Stored	On-Farm Storage Applicants requiring OCPA inspection (extra $35 is for on-farm storage inspection)
$25,000 and under	$ 80.00	$115.00
$25,000 - 75,000	110.00	145.00
$75,000 - 125,000	140.00	175.00
over $125,000	170.00	205.00

On-Farm Inspections

All inspections are to be arranged by the OCPA office.

Purpose

FOR THOSE FARMERS who wish to store their crops, the Agricultural Marketing Programs Act, administered by Agriculture and Agri-Food Canada, provides eligible producer groups with guaranteed loans to make advance payments to their members.

Eligibility

• Farmer must have produced corn in 2000
• Farmer must have corn in storage in amounts to cover the amount of advance requested.
• Corn may be in storage licensed under the Grain Elevator Storage Act of Ontario or in on-farm storage.
• Shelled corn, high moisture corn, and crib corn are eligible.
• Corn must be sold through designated buyers with which OCPA has an agreement for repayment, or through a buyer who will complete this agreement before time of sale.
• A list of licensed buyers is provided in the August-September issue of Ontario Corn Producer.
• Further licensed buyer updates will be provided in subsequent issues.
• Only OCPA members are eligible.
• The producer must have ownership of the corn in storage.
• Where the producer receives part payment and/or ownership has transferred to the buyer at the time of contract signing (i.e., basis or option contracts, deferred pricing), this corn is not eligible for any advance payment.

Coverage

• Payment will be advanced at the rate of $58.00 per tonne at 15.5% moisture.
• Maximums are across all crops covered under program i.e. $250,000 is total allowed for all crops under the program.

Repayment

• Corn must be sold to a designated buyer on or before September 30, 2001 and full repayment must be received by OCPA no later than October 16, 2001.
• Buyer makes deduction of $58.00 per tonne at 15.5% moisture and remits to OCPA postmarked within 10 working days from date of sale.
• Repayment must be made on first corn sold after receiving the advance; however a forward contract can be made for sales late in the marketing year to allow for earlier sales to be made before the advance must be repaid.

"RELATED PRODUCERS" PROVISION

The following applies ONLY if:

1. You are involved in another farming operation that is applying for or planning to apply for another advance payment in this crop year.
AND

2. You are required to report any income (or losses) from this other farming operation for purposes of the Income Tax Act (Canada).

INTEREST-FREE LIMITS
An applicant can be advanced up to $50,000 interest-free per crop year. Applicants include, as well as the actual producer, a Landlord, Vendor or Mortgagee entitled to a share of the crop. If an applicant is involved in more than one farming operation, the total interest-free advance attributed to that applicant is limited to $50,000. This also applies to the $250,000 limitation. If an applicant is in default and is involved in another farming operation, that farming operation will be ineligible for an advance or vice versa.

ATTRIBUTION RULES

1. A married couple are considered to be "related" unless they can prove that they are operating two separate and independent farming operations. Please call OCPA for details.
2. If the "related producer" is a corporation, the attributable percentage is the percentage of the voting shares that the producer holds.
3. If the "related producer" is a cooperative, the attributable percentage is 1 divided by the number of members multiplied by 100.
4. If the producer and the "related producer" are partners or members of the same partnership or other association of persons, the attributable percentage is the percentage of the profits of the partnership or association to which the producer is entitled.

EXAMPLE
The following example will demonstrate how the attribution provisions will have an impact on the advances received by related producers. In the example, we have 3 distinct entities that are applying for an advance of $50,000 each:

Advance Applications Received:

• Producer A (individual) = $50,000
• Producer B (individual) = $50,000
• Partnership AB (owned equally by producers A & B) = $50,000

Total advance requested $150,000

Interest Free Portion:

(In order to make the calculation easier, the partnership is calculated first and is eligible for $50,000 interest-free)

• Partnership AB = $50,000 ($25,000 is attributed to each A & B as individuals)
• Producer A (individual) = $25,000
• Producer B (individual) = $25,000
• Producer A & B can only receive $25,000 interest-free as individuals as $25,000 is attributed to each under the partnership AB
• Total interest-free = $100,000

Interest bearing

Producer A (individual) = $25,000
Producer B (individual) = $25,000

Other Detailed Information and answers to commonly asked questions.

Eligibility

1. You must agree that you will not request a refund of the OCPA check-off, as this is a requirement to be a member of OCPA.
2. If your corn storage consists of crib corn or high-moisture corn, you must present the quantity in equivalent number of tonnes at 15.5 per cent moisture.
3. All applicants must complete the PRIORITY AGREEMENT section of the application form. This section must be signed by the manager of the bank(s), supplier(s) or other lending institution(s) who currently hold lien(s) or encumbrance(s). This includes section 427 and general security agreements. A cheque will be issued by Ontario Corn Producers' Association jointly to the applicant and the creditor. Where no lien or other security is held on the corn in storage this must be verified by the manager of your lending institution in the same section of the form. A separate form is supplied for input suppliers.
4. Participants in the Commodity Loan Guarantee Program will have a priority agreement completed by the Agricultural Commodity Corporation.
5. Applicants must be 18 years of age or older.
6. You must have insurance on the corn in storage on your farm.
7. If corn is stored on another farmer's property and/or more than one farmer has storage in a bin, silo or crib, the ownership of the corn must be verifiable in order to be eligible for an advance payment. This requirement must be met so that OCPA can realize on the security of the lien.

For Partnership Applicants

1. The Priority Agreement section of the application form that you must have signed by your bank manager MUST have all partners indicated. For example - if you are applying as John and Mary Smith, the priority agreement(s) signed by your bank manager or other creditors must not have only John Smith's name on the agreement. We have no alternative but to return the form if all partners are not indicated - thereby causing an unnecessary delay.
2. The Elevator Storage Receipt must have all partners listed on the storage receipt. For example, if you are applying as John and Mary Smith the elevator storage receipt issued by the elevator must have both names listed - not just John Smith. Please ensure that you comply with this requirement to avoid unnecessary delays.
3. If the applicant is a partnership, registered or unregistered, a copy of the Partnership Agreement is required.

Repayment

1) For the purposes of completing the application you must identify at least one buyer where indicated on the form. Simply write in the buyer(s) of your choice to fulfill this requirement.
2) Prior to the time of actual sale, you may change your designated buyer by notifying OCPA. Should you wish to sell your corn to a designated buyer other than the one listed on your application, it is your responsibility to advise OCPA of the name of the designated buyer prior to the sale and to ensure that the buyer has signed an agreement with OCPA. For details regarding farm-to-farm and farm to end-user sales, please see next page.
3) Advances will be subtracted from cheques paid to producers by designated buyers at time of sale, and will be repaid to OCPA by the buyers post-marked within 10 trading days after the sale. The designated buyer issues two cheques per sale instead of one - one cheque at the rate of $58.00 per tonne sold is sent to OCPA and the remainder of the sale price goes to the producer.
4) Advances must normally be repaid with the first corn sold (i.e., at the rate of $58.00 per tonne sold) after the advance has been received. An exception exists where the producer has made a contract with a designated buyer to sell a quantity of corn at some future date (for example, July). In this case, the advance will be deemed to apply on this quantity of corn and other corn can be sold prior to the contract date. The contract must be signed by both buyer and seller and must specify quantity, time of delivery, and price. The price can be either specific or a pricing agreement - e.g., "board or track price at a specified location on the date of sale."
An example forward sales contract form is provided in the application. The producer can use this or an equivalent document which must be submitted either with the application, or at least before any corn is sold after the advance has been issued, if he wishes to use this repayment option.
Note that the above does not apply for deferred pricing, basis or option contracts, where the producer receives part payment at the time the contract is signed. Where partial payment occurs at the time of contract signing, the corn is considered, for purposes of the Advance Payment Program, to be sold on that date.
5) The ultimate onus is on the producer to ensure that the buyer repays the advance plus accrued interest and interest penalties in the event that repayment is delayed, under the terms of the Agricultural Marketing Programs Act.
6) Designated buyers may deduct up to $10 per producer for their administration costs relative to the forwarding of Advance Payment deductions to OCPA. However, a different amount may be charged at the buyer's discretion. Note that this charge is deducted from monies owing to the farmer, not the cheque to OCPA.
7) If you do not abide by the terms of the agreement, you will be in default and will be charged both an interest penalty and costs of
recovery. The interest rate penalty for defaulting will be an additional 2 per cent, raising the interest rate to prime rate of the bank
plus 1 3/4 per cent, calculated daily on the unpaid balance and compounded monthly. The producer is responsible for paying
interest up to and including the day repayments are received by the Ontario Corn Producers' Association.
8) It is the responsibility of the producer to repay 100% of the advance afterwhich his account will be reconciled and any refund returned to the producer. All corn on advance must have been sold or fed for advance to be interest free. Direct payments are subject to interest.
9) Payments must be remitted to OCPA (post-marked no later than 10 business days past the date of sale). OCPA will charge buyers at the rate of prime + 1 3/4 per cent calculated daily and compounded monthly, on the number of days for which the post-mark exceeds 10 business days past date of sale.

Application Details

1. A copy of the elevator storage receipt is required for corn stored in storage licensed under the Grain Elevator Storage Act.
2. OCPA must guarantee 2 per cent of the principal and interest of all advances issued (the federal guarantee to OCPA is for 98 per cent), and, since OCPA lacks the financial reserves to guarantee these advances itself, the only alternative is to ask each producer to guarantee himself via the 2 per cent holdback amount described above.
3. Credit checks and/or lien searches may be performed before issuance of an advance. OCPA reserves the right to register liens for the advances issued.
4. Advance payments will be forwarded to producers as soon as possible after receipt and approval of applications.
5. OCPA reserves the right to require the applicant to substantiate statements made in the Declaration, either through a statement from the applicant's accountant or by providing a copy of income tax statements. Failure to provide this proof, upon request by OCPA, will result in the Producer not receiving the advance or being declared in default if the advance has been issued.

"Farm-To-Farm," "Farm to End-User" and "Farm-Fed" Applications

1. Please see application Agreement section. This refers to an additional administration fee of 39.9 cents per tonne for these types of advances.
2. Please note that the applicant assumes all responsibility in farm-to-farm and farm to end-user sales as no protection is provided under the Financial Protection Program unless a license has been issued. The onus is always on the applicant to ensure repayment of advances.

For further information contact:

The Ontario Corn Producers' Association office:
90 Woodlawn Road West,
Guelph, Ontario, N1H 1B2
Telephone: (519) 837-1660 or (519) 837-9144
Fax: (519) 837-1674
E-mail: advance@ontariocorn.org
(Ask for Babs Wingrove).

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