Agriculture and Agri-Food Canada – Price Pooling Program


The Price Pooling Program provides a price guarantee that protects marketing agencies and producers against unanticipated declines in the market price of their products. Program participants use the price guarantee as security in obtaining credit from lending institutions. This credit allows the marketing agency to improve cash flow of producers through an initial payment for products delivered. It also provides equal returns to producers for products of like grades, varieties and types.

Comments on Funding:

Funding will take the form of a price guarantee which is set at a percentage of the expected average wholesale price of the product. Once all of the agricultural product is sold, the actual average wholesale price received by the marketing agency is determined. If the calculated value is less than the guarantee value (the initial payment plus the eligible costs), the program allows for a payment for the shortfall by the Government of Canada. If the calculated value is greater, the surplus is retained by the pool for future use or is distributed by the marketing agency to the producers according to the grade, variety and type of the product that they delivered to the pool.


The applicant must:

  • be an association of producers whose objective is the marketing, under a cooperative plan, of agricultural products produced by the producers;
  • be a person engaged in the processing of agricultural products for marketing under a cooperative plan;
  • be a person authorized by one or more associations or persons mentioned in paragraphs (1) and (2) to market agricultural products under a single cooperative plan;
  • market an agricultural product or value-added product under a cooperative plan.

Agricultural products are defined as:

  1. an animal, a plant or an animal or plant product
  2. a product, including any food or drink that is wholly or partly derived from an animal or plant

Applications Steps:

For further information on this program:
Toll Free Number: 1-866-367-8506
TTY: 613-773-2600

Documentation Needed:

The application letter must include:

  1. marketing agency information (including names of the members of the Board of Directors and a list of staff members, etc.);
  2. background information (including a brief history of the marketing agency, a description of the structure of the marketing agency, a copy of the agency’s cooperative plan, etc.);
  3. the guarantee request (including the expected volumes to be delivered to the pool, the expected volumes to be sold, a list of the prices received in the various markets including export markets for the past two years, etc.);
  4. a marketing strategy;
  5. financial information (including the marketing agency’s audited financial statements for the last three years, the name, address, phone, facsimile numbers, e-mail address and the contact person of the lender from which financing is to be obtained, the name of the firm, address, phone, fax number, e-mail address and the contact name of the marketing agency’s auditor of record, the name, address, phone, fax number, e-mail address and contact person for the brokerage firm with whom the marketing agency is dealing with in regards to the price protection methods used);
  6. a declaration confirming that:
    a) separate pooling accounts have been established;
    b) the marketing agency is in compliance with federal, provincial and municipal environmental requirements;
    c) there are no conflict of interest situations either with producers or within the marketing agency relative to the Price Pooling Program;
    d) it is understood that an audit of the marketing agency may be undertaken at any reasonable time for current or past crop years by, or on behalf of Agriculture and Agri-Food Canada;
    e) the information provided is true and accurate based on knowledge at the time of the application;
  7. a letter from the marketing agency’s lawyer indicating that the marketing agency is properly registered and can sue or be sued in its own name.

Program Contact:

Price Pooling Program

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