Price Pooling Program
Canada
Price guarantee for agricultural products
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJuly 09, 2024
- grant_single|grantStatusClosed
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
- Manufacturing
- Transportation and warehousing
grant_single|grantors
- Agriculture and Agri-Food Canada (AAFC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Protection against declines in market prices for agricultural goods.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$300,000
Develop an organic grain processing center
$280,000
Create a honey processing and packaging facility
$400,000
Establish a fish processing and sales operation
$200,000
Implement a new cold storage facility for apple production
$240,000
Launch a wheat flour production and distribution center
$120,000
Launch a direct-to-consumer farm produce delivery service
grant_single_labels|admissibility
Eligibility for this grant is primarily based on the formation and operation of marketing agencies in agriculture.
- The applicant must be a marketing agency, which could be an association of producers, processors, or a selling agent.
- The marketing agency must engage in the cooperative marketing of eligible agricultural products, including processed products.
- The marketing agency must enter into an agreement with the Minister of Agriculture and Agri-Food for the marketing of agricultural products under a cooperative plan.
grant_eligibility_criteria|who_can_apply
Eligibility for the Price Pooling Program is open to marketing agencies, which are essentially associations formed by producers, processors, or selling agents of agricultural products. These agencies operate under a cooperative plan for marketing purposes.
grant_eligibility_criteria|who_cannot_apply
This grant program is specifically designed for marketing agencies involved in the cooperative marketing of eligible agricultural products. Due to the nature of the program, certain types of companies and industries are inherently not eligible.
- Companies that are not marketing agencies associated with agricultural producers.
- Industries outside the agricultural sector or those not dealing with agricultural products.
- Individual producers who are not part of a marketing agency.
- Organizations not involved in the processing, storing, transportation, or selling of agricultural products.
grant_eligibility_criteria|eligible_expenses
This grant supports the cooperative marketing of eligible agricultural products by providing a price guarantee against market price declines. It focuses on enhancing financial stability and ensuring fair returns for producers through a structured marketing approach.
- Implementation of cooperative marketing plans for agricultural products.
- Development of systems for equitable initial payments to producers.
- Management of storage, processing, transportation, and selling of agricultural products within a cooperative structure.
- Strategies to retain or distribute surplus revenue for future use or direct benefit of producers.
grant_eligibility_criteria|zone
The program covers eligible costs related to the cooperative marketing of agricultural products.
- Storing of agricultural products.
- Processing of agricultural products.
- Transportation of agricultural products.
- Selling of agricultural products.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant.
- Producers must be involved in cooperative marketing of eligible agricultural products.
- The marketing agency must enter into an agreement with the Minister of Agriculture and Agri-Food for the program.
- The price guarantee is set at a percentage of the expected average wholesale price of the product.
- The agreement is valid for the length of the crop year during which the agricultural product will be produced.
- The actual average wholesale price received by the marketing agency determines potential payouts or surpluses.
grant_single_labels|register
- Step 3: How to Apply
- Identify and contact eligible marketing agencies that are participants of the Price Pooling Program.
- Complete any required forms or applications provided by the selected marketing agency.
- Submit the required documents and information to the marketing agency to ensure inclusion in their cooperative marketing plan.
grant_single_labels|otherInfo
Here are additional relevant details for the Price Pooling Program:
- The agreement with the marketing agency is specific to the crop year during which the agricultural product is produced.
- The surplus funds, if any, can either be retained by the pool for future use or distributed to producers based on product specifications.
- There is a fixed maximum on the eligible costs covered under the price guarantee.
- The program is intended to facilitate single-desk selling with a pooled price, enhancing market operations.
Apply to this program
Enhancing Market Stability Through the Price Pooling Program
The Price Pooling Program, facilitated by Agriculture and Agri-Food Canada, provides a robust safety net for agricultural producers and marketing agencies by guaranteeing a minimum price for agricultural products. This initiative enhances market stability, improves cash flow for producers, and fosters cooperative marketing strategies.
In-Depth Insights into the Price Pooling Program for Agricultural Advancement
The Price Pooling Program stands as a pivotal financial support mechanism, specifically catered to fortifying the marketing strategies of agricultural producers and their respective marketing agencies. Administered by the Minister of Agriculture and Agri-Food Canada, the program addresses fluctuations in market prices by guaranteeing a price level that assures producers of a fair return, thereby mitigating risks associated with volatile agricultural markets.
At its core, this program facilitates the cooperative marketing of eligible agricultural products, including those that have undergone processing. The key functionality of the program is its capacity to provide a price guarantee, which acts as a financial safeguard and enables producers to maintain liquidity through credit secured against guaranteed prices. This credit functionality is pivotal for marketing agencies that seek to improve producers' cash flows by issuing initial payments upon delivery of goods. Such financial arrangements allow producers to cover immediate expenses while waiting for the final sales' proceeds.
This initiative not only ensures an equitable distribution of returns based on the quality, variety, and type of product but also promotes the strategic formation and operation of marketing agencies. These agencies become vital participants in harnessing market opportunities, where economies of scale can significantly enhance profitability by optimizing storage, processing, and transportation costs.
The program is characterized by a distinctive structural component in which the Minister of Agriculture and Agri-Food collaborates with marketing agencies under a cooperative marketing agreement. This agreement meticulously outlines the expectations regarding price guarantees and the management of surplus funds. For instance, if the final calculated average wholesale price surpasses the predefined guarantee, the surplus generated is retained within the pool for future investments or equally redistributed among producers, encouraging further growth and productivity in the sector.
Furthermore, the Price Pooling Program supports strategic sales methodologies, such as single-desk selling, where collective bargaining power leads to improved market terms. This collective effort not only empowers producers but also buffers them against unexpected downturns in the marketplace, ensuring that their financial health remains stable over time.
Additionally, the program's framework facilitates an extended marketing timeline, allowing for the strategic sale of agricultural products over extended periods. This timeframe ensures that goods are sold under optimal market conditions, thereby maximizing returns. It prompts producers to align their sales strategies with market forecasts, leading to more informed decision-making and maximizing income potential.
Overall, the Price Pooling Program is an invaluable instrument in the Canadian agricultural landscape, designed to stabilize producers' incomes and bolster their resilience against market uncertainties. By participating in this program, producers and their marketing agencies are better equipped to navigate economic challenges, fostering an environment of growth and sustainability within Canada's agricultural sector.
