News

Deferred payments now permanently allowed under the grains act

GUELPH, ON (May 17, 2012) – Discussions between the provincial government, grain handlers and Ontario’s farmers have concluded and deferred payments will now be permanently allowed under the Grains Act beginning July 1, 2012.

Grain Farmers of Ontario and the Ontario Agri Business Association have been working with the Ontario Ministry of Agriculture, Food and Rural Affairs and Agricorp for more than a year and a half to resolve the issue of deferring payments on grain.  As a result, two regulations related to deferred payments, basis contracts and payments for grain sold out of storage have been updated, approved by the provincial legislative committee and filed with the Registrar of Regulations in Ontario.

“This has been a rewarding process to go through.  A problem was identified by farmers and the grain handling industry and we all pulled together including representatives from government to find a long term solution that will benefit everyone,” says Henry Van Ankum, Chair of Grain Farmers of Ontario.  “The government should be commended for how quickly we have resolved this issue.”

The specific changes to take place on July 1, 2012 are:

  1. Deferred Payments will be allowed permanently in the Grains Act 
  2. All deferred payments under 180 days are eligible for declining coverage under the insurance provisions of the Grain Financial Protection Program.  The dealer will simply be required to provide the producer requesting the deferred payment with written confirmation of: a) The date on which the deferred payment arrangement was entered into; b) The date or dates on which payment is to be made; c) The amount of each payment and the total amount of all payments.
  3. The initial payment for Basis Contracts has changed from 75% to 60%
  4. Elevators/dealers will have five (5) trading days to pay for Grain Sold Out of Storage which has changed the terms of payment from 2:00 p.m. the next trading day to 2:00 p.m. on the fifth trading day

Deferred payments have become a significant item in the marketing tool box and are used by an increasing number of farmers across Ontario.  For more information on the changes to the Grains Act, refer to the published regulations in The Ontario Gazette from May 19, 2012 or view the amending O.Reg. 260/97 (general) under the Grains Act at http://bit.ly/Kw5Bs4 and the new regulation O.Reg. 70/12 (payments from funds for grain producers) made under the Farm Products Payments Act at http://bit.ly/L3253P.  

Grain Farmers of Ontario

Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 corn, soybean and wheat farmers. The crops they grow cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts, result in over $9 billion in economic output and are responsible for over 40,000 jobs in the province.

Contact:

Barry Senft, CEO - 1-800-265-0550; bsenft@gfo.ca

Stay in touch

Subscribe to the Bottom Line

Subscribe to The Bottom Line, the weekly newsletter that helps our members stay on top of all the news that affects their bottom line.

Read the latest issue (July 21, 2017)

Subscribe


Inside Grain Farmers of Ontario

New episodes every week.

Episode 52: Communications – Honda Indy


Follow us

twitter   linkedin   youtube

Weekly Commentary

Get Aggregated RSS

Grain Market Commentary for July 19, 2017

Wednesday, July 19, 2017

Commodity Period Price Weekly Movement
Corn CBOT September 3.82  03 cents
Soybeans CBOT November 10.12  25 cents
Wheat CBOT September 5.03  32 cents
Wheat Minn. September 7.75  06 cents
Wheat Kansas September 5.00  44 cents
Chicago Oats September 2.93  11 cents
Canadian $ September 0.7950  1.00 points

Harvest 2017 prices as of the close, July 19 are as follows:
SWW @ $218.72/MT ($5.95/bu), HRW @ $218.72/MT ($5.95/bu),
HRS @ $289.01/MT ($7.87/bu), SRW @ $217.90/MT ($5.93/bu).

Read more

Market Trends

Get Aggregated RSS

Special Post June 30 USDA Market Trends Report

Tuesday, July 04, 2017

US and the World

It can be an explosive time in the grain markets. Across the greater US corn belt corn, soybeans and wheat are showing great variability as we head into July. Historically, the July 4th weekend has always served as a market flashpoint as crops start to develop quickly and summer weather makes its impact. The June 30th USDA planted acreage estimates and quarterly stocks report also impact the market at this critical time. In 2017, we are here again and once again the USDA did provide some surprises for market action.

Listen to the podcast

In their June 30th USDA report many market observers were musing that US soybean acres may overtake US corn acres planted. However, that was not the case as USDA predicted US corn planting at 90.89 million acres and US soybean planting coming in at 89.51 million acres. US corn acreage is down 3.11 million acres from last year. The US soybean acreage was approximately 440,000 acres below pre report estimates, but still 7% higher than last year. All wheat acreage came in at approximately 45.66 million acres, which was the lowest since the USDA began keeping records in 1919.

Read more

sustainability
mobile apps