GRAIN FINANCIAL PROTECTION PROGRAM

OCPA has received a list of licensed dealers from AGRICORP dated July 2, 2004. OCPA is providing this information received from AGRICORP as a convenience to its members. OCPA accepts no responsibility nor liability for the accuracy or completeness of the information provided.You are reminded of the qualifications to the AGRICORP listing which are stated as follows: "The foregoing information is given for your convenience only and it should be clearly understood that you must satisfy yourself as to whether the person you are dealing with is a licensed dealer under the Act." Producers wishing to verify information contained in this list or to obtain updates which may be necessary due to delays inherent in publishing should direct their questions to AGRICORP in Guelph I-888-40MAFRA ext. 63570 (1-888-466-2372), or local calls (519) 826-3570. For example, licenses may have been reinstated, renewed, newly issued or deleted since the date of the AGRICORP listing. Producers are reminded that only sales to licensed dealers are covered by the Grain Financial Protection Program and dealer licensing status should be verified with AGRICORP before any sales are made by a producer to a dealer. In addition, AGRICORP must be notified immediately if a producer is not paid within 10 trading days of the date of the sale to a dealer, or the following day if sold out of storage. Basis contracts have special rules. All cheques must be presented within five banking days. Failure on these accounts is reason for denying a claim...call for a brochure of program details.

Producers should check carefully the list of licensed dealers provided by AGRICORP and published in the September issue of the Ontario Corn Producer magazine. Careful attention should also be paid to the qualifications provided with the listing. AGRICORP has provided the following information pertaining to the Grain Financial Protection Program.

Producers Should Always Deal With Licensed Dealers and Elevator Operators.
Grain corn, canola and soybean producers are reminded by AGRICORP to always deal with a licensed dealer or elevator operator in order to be eligible for compensation under the Grain Financial Protection Program. The program provides 95 per cent compensation for corn, and 90 per cent compensation for soybeans and canola on validated claims. But to ensure their eligibility, producers must be aware of, and fulfill their responsibilities.

Producers should check to be sure a dealer is licensed.
In addition, they must ensure that:
1.They receive payment:

  • within 10 business days of the sale
  • by 2:00 p.m. of the next business day for grain sold out of storage
  • at 75 per cent of the current market value when sold on basis or price later contract.


    • 2.They pick up storage receipts within 45 days if grain is stored.
    3.They notify the chief inspector immediately of any non-payment or suspected default.

    On the other hand, grain dealers and elevator operators must comply with a number of rules. Grain dealers must:
    1. Hold a valid license as a 'dealer in grain' issued by the Chief Inspector under the Grains Act to purchase or accept for sale corn, soybeans and canola.The license must be posted in the dealer's place of business. 2. Pay within 10 trading days of the date of purchase.
    3. Pay for corn, soybeans and canola purchased out of storage by 2:00 p.m. of the next trading day.
    4. Pay 75 per cent of the current market value when purchased on a basis or price later contract.
    5. Deduct fees for the Grain Financial Protection Program from producers and forward to the appropriate producer organization by the 15th of the month following the month of purchase.

    Grain elevator operators must:
    1. Hold a valid grain elevator operator's license issued by the Chief Inspector under the Grains Act.The license must be posted in the elevator.

    2. On delivery of grain by an owner, issue a serial numbered grain receiving ticket with the following information recorded:
    a) name and address of the elevator operator
    b) your name and address as the owner of the farm produce
    c) date of delivery
    d) kind, grade, dockage and moisture
    e) net weight
    f) whether stored, sold or other specified use
    g) signature of person issuing the ticket.

    3. If you as the owner of the farm produce, store your crop, the elevator operator must:
    a) issue a grain storage receipt within 45 days of the date of first receiving ticket or within five days if requested
    b) record on the grain storage receipt:
    i) name and address of the elevator operator
    ii) name and address of the owner of the farm produce
    iii) dates of delivery and serial numbers of weigh tickets
    iv) grade and net weight of each load
    v) terms of storage and expiry date.

    These are important documents and will be required as proof of ownership in any claim under the Grain Financial Protection Program. Remember to check before date of sale that the dealer or elevator operator is licensed. Call AGRICORP immediately if you are not paid within 10 trading days of the date of sale. Producers may also be compensated if there is a storage shortfall in grain corn, canola or soybeans held by a licensed elevator operator.