GRAIN Policies

Storage

Payments

Contracts

Grading

STORAGE POLICIES

Grace Period:

Growers have a 10-day grace period after grain delivery, after which storage fees will begin to accumulate.

On the 11th day of storage:

  • Elevation In Fee:
    • All stored grain will incur a $4 per tonne elevation in handling fee.
  • Daily storage rate:
    • Wheat storage fees will accumulate at a rate of $0.10 per tonne / day. The rate will increase to $0.15 per tonne / day after September 30th of same crop year.
    • Soybeans and Corn storage fees will accumulate at a rate of $0.10 per tonnes / day.
  • Elevation out Fee:
    • Any stored grain that is shipped from the elevators by the grower will incur elevation out fee of $10 per tonne, plus accumulated daily storage fees.

Grower’s Responsibility

It is the grower’s responsibility to sell their grain upon its arrival at the elevators if they choose to do so. If the commodity is not already contracted or if the grower does not provide specific instructions for selling upon arrival, St. Lawrence Grains (“SLG”) will store the grain.

Storage timeline

Grain can be stored until a specific date, depending on the delivery location and/or commodity, as detailed below. After that date, it must either be sold to SLG or shipped back out by the producer.

Stouffville Elevator

Wheat can remain in storage until June 30th of the following year1.

Soybean can remain in storage until July 31st of the following year.

Corn can remain in storage until August 31st of the following year.

Havelock (Drain Bros) Elevator

Corn can remain in storage until August 31st of the following year.

Squirrel Creek Elevator

Wheat can remain in storage until September 30th of the same year2.

Soybean can remain in storage until November 30th of the same year.

Corn can remain in storage until August 31st of the following year.

Please note that SLG does not offer delayed pricing contract, however the grower may choose to enter into a basis contract as an alternative to selling at a flat price. It is the grower responsibility to make those arrangements before the storage end date.

1 – storage until the following year – for example, 2025 crop can be stored until June 30, 2026

2 – storage until the same year – for example 2025 crop can be stored until September 30, 2025

*These storage policies apply to all grains, unless otherwise noted, and can change at any time.*

Grain Payments

DEFERRED PAYMENT

Deferred grain payment allows the grower to sell the grain in the current year, and defer the payment and therefore taxable income, into the next year. It is the grower’s responsibility to request a deferred payment from the grain buyer and make sure you receive a written confirmation of a) Date of the deferred payment arrangement was entered into; b) the date on which the payment is to be made; c) The amount of each payment and the total amount of all payments. SLG will provide the grower a deferred payment form as a written confirmation.

GRAIN PAYMENTS RESPONSIBILITY

SLG is a licensed grain dealer and required to adhere to the following Agricorp guidelines of payment timelines:

  • Sales upon delivery: Issued within 10 trading days or by the date specified in a deferred payment arrangement.
  • Sales out of storage: Issued by 2 p.m. on the fifth trading day after the sale or by the date specified in a deferred payment arrangement.
  • Basis contracts: 60 per cent of the market price issued within required timelines, as per payment arrangement (e.g., deferred, upon delivery or out of storage). Please review basis contract arrangements detailed in our “purchase contracts” page.
  • Deferred payment arrangements: Written confirmation of any deferred payment arrangement received from the dealer within five trading days of the arrangement date.

Payment Methods

SLG will make a payment to the producer via Direct deposit (EFT) or cheque. Direct deposit (EFT) eliminates postal delays, lost or damaged mail, and expediate payment receipt. To set up for future direct deposit payments please complete the EFT form, accompanied by a void cheque (if available) and return to your grain buyer.

Purchase Contracts

SLG offers the following grain purchase contracts options to its growers:

FORWARD CONTRACTS

A forward (or deferred) grain contract is a legally binding commercial agreement between a grower and a grain buyer/dealer with a committed delivery period, destination, and predetermined conditions and price.

Forward grain contracts are valuable marketing tools for both the buyer and the grower to plan their business and reduce uncertainty. This provides a competitive edge to the whole grain industry.

The grain buyer/dealer uses forward contracts to secure grain supply for upcoming sales contracts. They are taking risks by signing up to sell amounts that are not produced yet and rely on these contracts to meet their commitments.

Forward grain contracts allow the grower to secure a cash price for grain that has not yet been delivered. By doing so, it helps them eliminate downside price risk and improves their ability to plan. Forward marketing is an essential part of a diversified marketing plan.

BASIS CONTRACTS

A grain basis contract is a marketing tool that allows the grower to lock in the price difference (basis) between the local cash price and a futures contract, while leaving the final price to be determined later by setting the futures price.

The grower guarantees to deliver, or has already delivered, a certain tonnage of crop at a fixed basis relative to the price of a specific futures month. The grower can lock in the futures price of the grain any time before a specified date.

The final price is determined when the grower chooses, or locks in, a futures price. The final price is the chosen futures price for that commodity plus or minus the basis specified in the contract. A basis contract can be used for growing crop, before delivery of farm-stored crop or for crop at the time of delivery.

Advantages of Basis Contract:

  1. Eliminates downside basis risk.
  2. Can take advantage of potential futures price increase.
  3. Can collect an advance on delivered grain without locking in the final cash price.
  4. No storage costs.

Disadvantages of Basis Contract:

  1. Opportunity loss of upward basis movement.
  2. Risk of futures price decrease. (If futures drop below the level used to calculate your advance, you may have to pay back a portion of the advance.
  3. Must track the futures and market trends to lock in a favorable futures price.
  4. Full payment is not made until the future price is locked in.
  5. Rolling the basis contract to the next futures months will incur an admin rolling fee.

Upon delivery of grain against a basis contract 60 per cent of the market price will be paid to the grower within the required timelines, as per payment arrangement (e.g., deferred, upon delivery or out of storage).

Grading and Discounts

SLG receives CESRW Wheat, C.E.Y Corn, and Soybeans at its Stouffville and Squirrel Creek elevator locations and C.E.Y Corn at Havelock (Drain Bros) elevator location.

Grading at SLG elevators is according to the Canadian Grain Commission Standards. Please find below links to the official Canadian grain commission grain grading guides:

CESRW Wheat official grain grading guide

C.E.Y Corn Official grading guide

Soybeans Official grading guide

Grade discounts are subject to change per crop conditions, please request a copy of the most recent updated version of the grade discounts from your grain buyer.