Price Pooling Program

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.

Who is eligible?

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.

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.

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.