Some Things To Consider When Purchasing
GRAINS & OILSEEDS
From Suppliers
Reprinted from the Autumn Newsletter of Ontario Agri Business Association Ontario

The Credit and Finance Committee and Grain Section Committee of the Ontario Agri Business Association have developed the following checklist of points that country elevators, feed mills and other buyers may want to consider, prior to receiving and purchasing corn and soybeans from the 2004 harvest. Know your customer and verify whose crop is being delivered. Ensure that you know the producer name and the exact legal name that you are purchasing the produce from. For example: Brown Farms Ltd. (company), or John Brown (individual) or Brown Brothers (partnership). If it is a sharecrop arrangement, you may want to consider making the cheque jointly payable to both the producer and the sharecropper. o Consider implementing a "New Customer Information Form" which will provide you with sufficient background information required to establish a new account. Determine what information you require on your new customer's farming operation, including specific details on farm name, acres under production, financial institution, and where they purchase crop inputs, etc. o Should a producer arrive at your elevator/mill who is unknown to you or your staff, or may have come from outside your traditional trading area, request identification that will properly identify the vendor of the produce. o Check notification listings for any Advance Payments or ACC Commodity Loans. Deduct and remit the appropriate amount to the designated program administrator. o Review time parameters required under the Ontario Grains Act, as they relate to issuing payment to the producer. o Always keep lines of communication open with crop input suppliers, financial institutions and other agri-businesses in your trading area.

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