How much funding can be received?

There is no informations about how much funding can be received.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Grain Financial Protection Program (GFPP)?

Grain Financial Protection Program (GFPP) is funded by Agricorp

What are Grain Financial Protection Program (GFPP)'s eligibility criterias?

Must purchase canola, grain corn, soybeans, or wheat from producers (not for personal use) or operate a grain elevator storing third-party grains. Must obtain and maintain a valid grain dealer or elevator operator licence. Must demonstrate financial responsibility as per program requirements.

Grain Financial Protection Program (GFPP)

Last Update: June 22, 2025

Canada

Protects grain producers and storage owners from financial loss

Grain Financial Protection Program (GFPP) at a glance

Eligible Funding

No Condition

Timeline

Continuous Intakes

Financing Type

Other Support

Eligible Industries

All industries

Grant Providers

Agricorp

Status

Open

Overview of the Grain Financial Protection Program (GFPP) program

The Grain Financial Protection Program (GFPP) provides financial coverage of up to 95% for producers of canola, grain corn, soybeans, or wheat in the event a licensed dealer or elevator fails to meet payment or storage obligations. The program aims to protect grain producers and owners by offering compensation for eligible losses related to non-payment or storage defaults.

Financing terms and conditions

Financial protection for producers covers up to 95% of approved claims when no payment deferral is arranged.
Coverage decreases with deferred payment arrangements: 50% for deferrals of 1 to 45 days, 40% for 46 to 90 days, 30% for 91 to 135 days, and 20% for 136 to 180 days. No coverage for deferrals over 180 days.
For businesses required to provide financial security, the amount equals 60% of the highest month's grain purchases (separate calculations for October–January and February–September), and security must extend three months beyond the licence expiry date.

Eligible projects & activities

Licensing and operation of grain dealing businesses purchasing canola, grain corn, soybeans, or wheat from producers.
Licensing and operation of grain elevator facilities storing grains or oilseeds on behalf of producers or other owners.
Participation in inspections and compliance activities to ensure proper practices in grain dealing and storage operations.
Provision of financial protection to producers in the event of dealer or elevator operator default on payment or storage obligations.
Filing and adjudication of claims by producers for unpaid sales or unreturned stored grain within the program's framework.

Eligibility criteria of the Grain Financial Protection Program (GFPP) program

The applicant must be a business purchasing canola, grain corn, soybeans, or wheat from producers for purposes other than personal use, and/or operating a grain elevator storing grains or oilseeds other than their own.
The applicant must hold a valid grain dealer licence (for buyers) and/or grain elevator operator licence (for storage operators).
The business must submit the required application forms and supporting documents to Agricorp, including applicable business registration and recent financial statements prepared by a third party (for dealers).
The applicant must demonstrate financial responsibility as assessed by Agricorp through quantitative and qualitative analysis, or provide tangible financial security if unable to meet the criteria through financial review.
The applicant must pay all relevant licensing fees and comply with the requirements set out by the Grain Financial Protection Program and the Grains Act.

Who is eligible?

Grain dealers who purchase canola, grain corn, soybeans, or wheat from producers for purposes other than personal use
Companies operating grain elevators that store grains or oilseeds not owned by them

Eligible expenses

Compensation for producers following dealer or elevator operator failure to meet payment or storage obligations (covering a portion of financial losses on approved claims).

Eligible geographic areas

Ontario

Eligibility criteria of the Grain Financial Protection Program (GFPP) program

Current ratio: 23 points maximum – Measures the ability to meet short-term obligations.
Debt to equity ratio: 25 points maximum – Assesses use of financial leverage and risk.
Interest coverage ratio: 10 points maximum – Evaluates the ability to service business debt.
Profit margin on sales ratio: 20 points maximum – Indicates profitability of the business.
Stability ratio: 15 points maximum – Reflects the relationship between sales volume and equity.
Average collection period ratio: 2 points maximum – Assesses how quickly the business collects accounts receivable.
Line of credit ratio: 5 points maximum – Indicates extent of line of credit usage.

How to apply to the Grain Financial Protection Program (GFPP) program

Step 1: Submit Application
- Obtain and complete the appropriate application form from agricorp.com: either Application for a Licence as a Dealer in Grain or Application for a Licence as a Grain Elevator Operator.
- For grain dealers: Submit the Application for a Licence, Financial Responsibility Form, Banker’s Confirmation, licence fee payable to Agricorp, business registration form or articles of incorporation, and financial statements for the past three years (prepared by a third party).
- For elevator operators: Submit the Application for a Licence, Agricorp’s Certificate of Insurance Coverage, and licence fee payable to Agricorp.
- Send all completed forms and required documents to Agricorp.
Step 2: Prove Financial Responsibility
- Agricorp conducts a quantitative analysis of financial responsibility, using submitted financial statements to calculate key financial ratios and assign a financial score.
- The Financial Responsibility Review Committee performs a qualitative analysis, evaluating intangible factors such as management experience, level of risk, and quality of financial information.
- If the initial financial responsibility requirement is not met, applicants may submit additional documentation (e.g., financial commentary, banking arrangement information, financial projections, appraisals) to strengthen their application.
Step 3: Obtain Licence Approval
- The Financial Responsibility Review Committee makes a recommendation to the chief inspector based on the quantitative and qualitative assessments.
- If approved, the licence is mailed to the applicant, who must display it prominently at their place of business.
- If not approved, Agricorp will provide reasons and options for next steps, such as providing corporate indemnification, personal guarantees, or shareholder loan postponements to meet requirements.
Step 4: Provide Financial Security (if required)
- If the applicant still does not meet financial responsibility criteria, tangible financial security (e.g., letter of credit, surety bond) and a Purchase Declaration must be provided.
- The amount of security required is determined based on highest monthly purchases, and security must extend three months beyond the licence expiry date.
Step 5: Application Review and Issuance
- Agricorp reviews all documents and security provided.
- Upon final approval, the official licence is issued for one year.

Additional information

Coverage levels for claims decrease as the length of any deferred payment arrangement increases.
Small dealers renewing their licence may be exempt from the financial security requirement.
Official grain storage receipts must include detailed information and are available from the Ontario Agri Business Association.
Applicants who do not meet financial responsibility may provide additional security options, such as personal guarantees or shareholder loan postponements.