Licensing and inspections for dealers and elevators
Anyone who purchases canola, grain corn, soybeans or wheat from a producer, for any purpose other than personal use, must have a grain dealer licence. Any person who operates an elevator and stores grain other than their own must have a grain elevator operator licence.
Agricorp appoints a chief inspector to issue these licences and perform dealer and elevator inspections. This is to ensure that dealers and elevator operators are in compliance with legislation, that producers receive payments for sold crops in a timely manner and that producers and owners receive their stored crops when requested.
You must apply for and renew your licence each year.
Agricorp may audit and inspect your business locations to ensure that you comply with the requirements of the program.
This licensing and inspection process is funded by producers through their checkoff fees and by dealers and elevator operators through their licensing fees.
Financial protection for producers and owners
Producers or owners who sell canola, grain corn, soybeans or wheat to licensed dealers, or who store these crops with licensed elevators, are financially protected if a licensed dealer or elevator does not meet their payment or storage obligations. Producers or owners may submit a claim to the Grain Financial Protection Board to cover a portion of their loss.
Grain dealer defaults
When you sell grain to a licensed dealer, you 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, you can make a claim for the grain for which you have not received payment.
The following chart shows the maximum coverage levels, according to the length of the deferred payment arrangement.
Coverage levels by length of deferred payment arrangement
Length of deferral*
Maximum coverage on approved claims
1 to 45 calendar days
|46 to 90 calendar days
|91 to 135 calendar days
|136 to 180 calendar days
|Over 180 calendar days
* 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.
Elevator operator defaults
When an elevator operator becomes insolvent, you can make a claim for the grain you have not received. The chief inspector is authorized under the Grains Act to seize the stored grain and:
- Distribute it to owners on a proportionate basis, or
- Sell it and distribute the proceeds to the owners on a proportionate basis.