Selling grain to an unlicensed buyer: Approval and sampling requirements

Agriculture Financial Services (AFSC) defines a licensed buyer as a grain buyer licensed by the Canadian Grain Commission (CGC) as either a primary elevator or terminal elevator. AFSC only accepts receipted grades on sales from buyers holding one of these licence types.

The Commission offers several classes of licences, each with different requirements. Primary and terminal elevator are the only licence classes required to sample grain upon receipt and resolve grade and dockage issues through the CGC.

The Canadian Grain Commission publishes a list of all grain companies licensed as a primary elevator, process elevator, terminal elevator or grain dealer.

Selling grain to an unlicensed buyer

If grain is sold to a grain dealer, private buyer or process elevator before a post-harvest inspection is completed, AFSC may use the client’s samples. However, clients must contact their preferred branch office before moving any grain and obtain approval to collect samples for grading purposes.

If clients do not obtain approval before the grain is moved, AFSC  can use the designated grade of the grain. Once approval is granted, AFSC must receive a representative grain sample from each truckload sold directly off the field or from each bin if the grain is sold from storage.

Grain sold directly off the field:

• If the grain sample is acceptable, AFSC will grade it and use the actual grade.
• If the sample is not acceptable, AFSC will use the designated grade of the grain.

Grain sold from the bin:

• If the grain sample is acceptable, AFSC will grade it and use the actual grade.
• If the sample is not acceptable, AFSC will use the designated grade of the grain.

Sampling requirements

To ensure samples accurately represent the grain sold:

• Collect and store samples in a sealed container, such as a five-gallon pail, that preserves moisture content, maintains sample integrity, and keeps out rodents and insects.
• Collect samples throughout the transfer process, such as while the grain is being loaded into trucks for sales directly from the field or from each truck while unloading into bins.
• Store samples in a manner acceptable to AFSC and represent the quality of the crop sold.

If AFSC determines that the saved sample is not representative of the grain sold, the grain will be assigned the designated grade.

If you would like more information about AFSC client responsibilities when selling grain to an unlicenced buyer, please use Live Chat on our website or AFSC Connect, call our Client Care Centre at 1.877.899.2372 or contact your preferred branch office.