
Price Pooling Program
- Open Date : July 9, 2024
Overview
Protection against declines in market prices for agricultural goods.
At a glance
Funding available
- Launch or market a product/service
- Varies by project
- Open Date : July 9, 2024
Eligible candidates
- Agriculture, forestry, fishing and hunting
- Manufacturing
- Transportation and warehousing
- Canada
- Non-financial cooperative
- All revenue ranges
- All organization sizes
- All groups
Next Steps
Activities funded
The Price Pooling Program is aimed at supporting marketing agencies in the cooperative marketing of agricultural products. Eligible activities focus on enhancing producers' financial stability and ensuring equitable returns through orderly marketing and protection against market price fluctuations.
- Negotiating price guarantee agreements for agricultural products with marketing agencies.
- Facilitating initial payments to producers for delivered products under the cooperative marketing plan.
- Utilizing the price guarantee as collateral for securing credit from financial institutions.
- Managing costs related to storing, processing, transportation, and selling of agricultural products.
- Implementing single-desk selling systems with pooled pricing strategies.
- Distributing surplus funds to producers based on the grade, variety, and type of delivered products.
Eligibility
Who is eligible?
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.Who is not eligible
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.
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.
Additional information
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.