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.
What's new
Effective July 1, 2012, updates to the Grain Financial Protection Program (GFPP) include:
- Payment timelines
- Sales upon delivery issued within 10 trading days or by the date specified in a deferred payment arrangement
- Sales out of storage issued by 2 p.m. on the fifth trading day after the sale or by the date specified in a deferred payment
arrangement
- Basis contracts
- A minimum of 60 per cent of the market price issued within required timelines, as per payment arrangement (e.g., deferred, upon delivery or out of storage)
- Deferred payment arrangements
- Written confirmation of any deferred payment arrangement received from the dealer within five trading days of the arrangement date
- Allowing of deferred payments of any duration, with reduced coverage as the deferral period increases (see table below)
- Maximum coverage for producers or owners of canola, grain corn, soybeans or wheat, according to the length of a deferred payment (see table below)
|
Coverage levels by length of deferred payment arrangement |
|
Length of deferral* |
Maximum coverage on approved claims |
|
No deferral |
95% |
|
1 to 45 calendar days |
50% |
| 46 to 90 calendar days |
40% |
| 91 to 135 calendar days |
30% |
| 136 to 180 calendar days |
20% |
| Over 180 calendar days |
0 |
* Refers to 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.
