Before selling grain to an unlicensed buyer, producers with AFSC production insurance should understand the requirements that apply and the steps they need to take to protect their coverage.
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.
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.
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