- 1. What this program offers
- 2. Eligibility
- 3. Before you apply
- 4. How to apply
- 5. After you apply
- Contact information
3. Before you apply
Review and consider the following information before you apply.
Contact the program
Before you apply, please contact the program to discuss your application. If the program meets your needs we'll help you through the application process.
How the program works
To participate in the program, you must apply each year.
Once all your eligible sales are completed, the actual average wholesale price is calculated. The agreement is valid only for the specified crop year when the product is produced.
- If the calculated value of the agricultural product is less than the guaranteed amount (the initial payment plus the eligible costs), we pay the shortfall
- If the calculated value of the agricultural product is greater than the guaranteed amount, the surplus stays in the pool for future use or is distributed to producers based on the grade, variety and type of product that they delivered to the pool
Important information
Submit your application at least 8 weeks before you need the agreement.
Your obligations to the program
As a marketing agency, you're accountable to the Minister of Agriculture and Agri-Food for the efficient administration of the program. You must abide by the price guarantee agreement and procedures outlined in the administration guidelines.
You must:
- make sure that delivered crops are of marketable quality, properly graded, tested on delivery, and adequately stored until sold
- keep the agricultural product insured while in storage
- pay producers an initial payment as specified in the price guarantee agreement
- make sure that the agricultural products were produced by the producer receiving the initial payment
- market products to get the best possible price over a reasonable time frame in all markets
- pool the proceeds from the sale of the agricultural product
- inform us of any payments to producers above the maximum initial payments specified in the price guarantee agreement (such as interim or final payments)
- distribute equal returns to the producers for agricultural products of like grades, varieties and types
- return net proceeds to producers from the sale of all products delivered within the specified agreement period, after deducting the initial payment, the marketing costs and any reserves