Producers who are thinking about selling their grain through an unlicensed grain buyer need to consider a variety of factors, especially if they have production insurance through AFSC.
Agriculture Financial Services (AFSC) defines a licensed buyer as a grain buyer who is licensed by the Canadian Grain Commission (CGC) as a primary elevator or terminal elevator. AFSC only accepts the receipted grade on sales from buyers who have a primary elevator or a terminal elevator license from the CGC.
The Commission offers several classes of licenses, and the requirements are different for each class. The terminal elevator and primary elevator are the only two classes where licensees are required to sample 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.
Things to know when selling grain to unlicensed buyers
If grain is sold to a grain dealer, private buyer or process elevator before an AFSC adjuster performs a post-harvest inspection, AFSC may use the client’s samples, based on the following conditions:
1/ Clients need to contact their preferred AFSC branch office and obtain approval to collect samples for AFSC grading purposes prior to the grain being removed.
If clients do not receive approval before the grain is removed, AFSC will use the designated grade of the grain.
Grain sold directly off the field
- If the 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
Grain sold from the bin and there is a minimum of 400 bushels remaining in the bin, an adjuster will compare the client’s sample to the grain in the bin to determine if the sample is acceptable:
- If the grain sample is acceptable, it will be graded accordingly.
- If the sample is not acceptable, a new sample will be taken from the bin.
- If the sample is not acceptable and there are less than 400 bushels remaining in the bin, AFSC will use the designated grade of the grain.
- If the bin is being emptied, or if there will be less than 400 bushels remaining, clients can contact their branch office prior to moving the grain for AFSC to come sample the grain before it is moved.
2/ If approval is obtained, AFSC must receive a representative grain sample per truckload if sold off the field or per bin.
Sampling requirements are as follows:
- Grain must be collected in a sealed container (i.e., five gallon pail) that preserves moisture content, maintains sample integrity, and keeps out rodents and insects.
- The sample needs to be obtained intermittently, such as while the grain is loaded into trucks for sales directly from the field or from each truck while unloading into bins.
- Samples are to be stored in a manner acceptable to AFSC and represent the quality of the crop that was sold.
If the client saves a sample and AFSC determines that it is unrepresentative, AFSC will assign the grain its designated grade.
If you would like more information about AFSC client responsibilities when selling grain to an unlicensed 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.