Agricorp Financial Protection Programs
Beef Cattle Financial Protection Program
Licensed dealers may make a claim if a producer defaults on payment. Compensation is 85 percent, up to a maximum of $125,000. There is no compensation for claims less than $5,000.m is funded by the Government of Ontario.
The ministry licenses all beef cattle dealers (including country dealers, abattoirs, auction markets, associations and meat packers). Beef cattle producers must sell their animals to a licensed dealer and pay a check-off fee on each sale. The fees are deposited into a fund.
Two types of claims can be made against the fund:
Cattle sellers may make a claim if a licensed dealer defaults on payment. Compensation is 95 per cent on approved claims.
Licensed dealers may make a claim if a producer defaults on payment. Compensation is 85 per cent, up to a maximum of $125,000. There is no compensation for claims less than $5,000.
The Livestock Financial Protection Board (LFPB) manages the fund and determines if a claim should be paid.
Agricorp supports the ministry in licensing dealers, collects the check-off fees and supports the LFPB.
The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) manages program policy, licensing decisions, investigations and enforcement.
How to participate
For information on how to obtain a dealer licence or make a claim, contact Agricorp at 1-888-247-4999.
To learn more visit: http://www.omafra.gov.on.ca/english/food/inspection/index_fpu_page.htm
Grain Financial Protection Program
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.
All dealers and elevator operators must be licensed and make payments to producers and owners within specified timelines.
Sell crops only to licensed dealers.
Cash your 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 your dealer fails to meet the required payment timelines (see Grain dealer responsibilities below).
Store crops only at licensed elevator operators.
Ensure that you receive weigh tickets for each delivery.
Ensure that you receive a grain storage receipt within 45 trading days of delivery, or within five trading days of request.
Ensure that your grain storage receipt is signed by the elevator operator and that it shows the expiry date, charges and any other arrangements you made with the elevator operator.
Notify the chief inspector immediately by calling Agricorp at 1-888-247-4999 if your elevator operator fails to meet storage obligations.
Grain dealer responsibilities
Hold and post a valid grain dealer licence in your establishment.
Deduct your checkoff fees and remit them to the appropriate commodity organizations each month.
Make payments to producers within the required timelines:
For sales upon delivery: Issue payment within 10 trading days or by the date specified in a deferred payment arrangement.
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.
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).
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.
To learn more visit: https://www.agricorp.com/en-ca/Programs/GFPP/Pages/HowItWorks.aspx
All information gathered from Agricorp's website:
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