Price Pooling Program: 4. How to apply

4. How to apply

Information you must provide

• Marketing agency information
• Background information
• Guarantee request
• Marketing strategy
• Financial information
• Declaration
• Application form
  • Cooperative plan
  • Annex 1 - Processing, Selling, and Transportation Costs
  • Annex 2 - Market Information Form

Marketing agency information

This information helps us assess your marketing agency's ability to administer the program. Please include:

• the name, address, phone number and email address of your agency
• the name, position, and contact information of the Program Administrator and any alternate contact person (if different from the Administrator)
• a description of the management structure, including the name and position of officers with signing authority for the program
• the names of those on Board of Directors
• a list of staff members with a description of their duties and their reporting relationships (such as an organizational chart)
• an explanation of your agency's proposed decision-making process for various program elements, including:
  • pool size
  • breakdown of the different pools
  • estimated costs
  • information requests related to producer agreements
  • interim and final payment processes
• your agency's website address, if applicable
• your agency's most recent annual report or business plan
• any additional information relevant to how your agency will administer the program such as supporting documents like business plans, annual reports, brochures, and pamphlets

Background information

Provide the following details about your marketing agency:

• A brief history of your agency, including goals and objectives
• The date your agency was formed
• The geographical area covered by your agency (county, region, province, etc.)
• The structure of your agency (for example, cooperative association, processor, selling agent, etc.) and copies of legal documents such as the certificate of incorporation
• A description of how the agency operates relative to the production and marketing of crops under the agreement (for example, price negotiation)
• The number of producers who are members of your agency, the expected participants this crop year, and the estimated total number of producers (members and non-members) in the area represented by your agency
• The estimated volume produced by all your members compared to the total expected production for the entire region
• Confirmation on whether your members receive equal shares for same crop and grade
• A copy of your marketing agency's cooperative plan (included in the application form)
• A description of how the program will benefit both your agency and participating producers

Guarantee request

Your marketing agency must estimate an average wholesale price for the entire crop year. Where applicable, list the following for each grade and/or variety of commodity:

• The date by when the price agreement is needed
• The start and end dates of the crop year (not exceeding 12 months)
• The expected volumes to be delivered and sold
• A detailed list of cost items included in the guarantee for the previous year, current year, and upcoming year (Annex 1 - Processing, Selling, and Transportation Costs, included in the application form)
  • Should there be a claim, you'll be restricted to these listed costs in which will be outlined in the agreement
  • Reference specific items in your financial statements where possible
• The prices received in the various markets, including export markets, for the past 2 years, current year, and upcoming year (Annex 2 - Market Information Form, included in the application form)
• The expected average wholesale price with supporting documentation (for example, industry journals, commodity or market reports, contacts)
• The requested price guarantee, calculated by multiplying the expected average wholesale price by 65%
• A breakdown of the total price guarantee into the:
  • initial payments to producers
  • marketing costs, in dollars per unit (for example, $ per tonne)

Marketing strategy

Describe how your marketing agency plans to market the product for the upcoming season. Include:

• how the product will be marketed
• any exporting activities, including percentages and destination countries
• when and where the product is delivered, graded and stored
• how products are identified and accounted for, especially if other products are stored on-site
• how and when initial payments are made to producers
• details of other programs offered to producers by your agency, other than the Price Pooling Program
• a description of how the pool will function, including:
  • copies of agreements or undertakings with the producers
  • whether this pool is governed by any provincial legislation (attach relevant copies of acts or regulations)
• details on the agency's involvement with their members other than the purchase of their product such as meetings, events, etc.
• details on any product sold by your agency or the producer that is not covered by this agreement including the volume and type of product to be sold, and how separate accounting will be kept
• plans for marketing the volumes of the previous year's crop remaining in the pool
• details on volumes and prices for products that have already been sold per product, grade and variety
• description of any price protection methods used, including timing, decision making and policy considerations

Please provide any additional information about your marketing strategies that will help us fit the guarantee to your needs.

Financial information

Please provide the following information:

• Your marketing agency's audited financial statements for the last 3 years
• The name, address, phone number, email address and the contact person of the lender providing financing
• The name of the firm, address, phone number, email address and the contact person of your agency's auditor of record
• The name, address, phone number, email address and contact person for the brokerage firm involved in the price protection methods used

Declaration

Include a signed letter from an authorized representative to confirm:

• separate pooling accounts have been established
• your marketing agency complies with federal, provincial and municipal environmental requirements
• there are no conflicts of interest with producers or within your agency regarding the Price Pooling Program
• your agency understands that an Agriculture and Agri-Food Canada audit may occur at any reasonable time for current or past crop years
• the information you provide is true and accurate at the time you apply

Also, include a letter from your agency's lawyer to confirm your marketing agency is properly registered and can sue or be sued in its own name.