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.
I. Selling crops:
II. Storing crops:
Grain dealer responsibilities:
- 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:
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.