Growers Required to Sign Declaration of Eligibility When Selling New Crop for 2020/21 Crop Year
June 23, 2020
With the Canada-U.S.-Mexico (CUSMA) trade agreement ready for implementation, the Canada Grain Commission has advised on requirements for growers.
Important changes under the new trade agreement include making it mandatory for people, including licensed grain companies, who sell grain to a Canadian Grain Commission (CGC) licensee to make a declaration of eligibility.
It is important for pulse growers across the country to be aware of this declaration and what they should be prepared for when selling their new crop for the 2020-21 (August 1, 2020) year. Additional information regarding these new requirements can be found at:
Frequently Asked Questions
Who is required to sign a declaration?
- All those who sell grain to a CGC licensed facility are required to sign a declaration of eligibility (this can happen on a crop year basis or for an individual delivery)
- Sellers will need to sign a declaration form at least once every crop year for each licensed grain company you deliver to. This declaration applies to all grain types, and where applicable all classes, that you will deliver to that company and must be made at or before the first delivery of the year
- The same process applies to producer cars if you are selling grain to a licensed grain company. If you are using a producer car administrator, sign the form and send it to the administrator. If you are self-administering your producer cars, send your signed form to the grain company before your delivery
- If someone is hauling grain for you, you are responsible for ensuring the following:
- you have signed a declaration form at that elevator before your delivery or sent a signed form with the load of grain being delivered
- the person hauling your grain knows the kind (and class, if applicable) of the grain being delivered
What is required in the declaration?
- The signed declaration from the seller must state that the grain is of a variety registered in Canada
Do I need to print, fill in, and bring my own declaration form to the elevator when I sell my crop?
- CGC licensed facilities will have the official declaration form available for you to fill in when you bring you grain to be sold. However, to be safe the official declaration and prescribed fields will be available in PDF format on the CGC website
- Having blank copies on you is a good precautionary measure
How will this requirement apply to sales made to a CGC-licensed facility via a third party or broker? (Ex. Broker sells to a CGC licensed buyer with a contract that states “sold on behalf of Grower x”, however the licensed buyer coordinates delivery directly with Grower x)
- The person that has ownership of the grain to be sold (legal name on contract) will be required to sign the declaration. This would normally be the producer where a broker is acting on their behalf. For clarity on specific scenarios, please contact the CGC: firstname.lastname@example.org
What happens if a sale or delivery of grain is made to a CGC-licensed facility without a signed declaration?
- Grain delivered without a signed declaration is not a legal delivery under the Canada Grain Act and cannot be assigned an official Canadian grade. Selling grain without a signed declaration would be an offence under the Act, and penalties for contraventions of this nature are set out in Section 107 (2) of the Canada Grain Act
- If you do not declare the eligibility of your grain, the company may refuse to accept or be unable to accept your delivery
- If you deliver an unregistered variety to a licensed elevator in Canada, unless otherwise established by order of the Canadian Grain Commission, your delivery is only eligible for the lowest grade established by regulation for that kind of grain
Why is this declaration process now part of CUSMA?
- The United States had expressed concerns about discriminatory treatment of American-grown wheat, particularly as it relates to statutory grading. Previously, the Canada Grain Act excluded any type of imported grain from receiving a Canadian grade, based on origin. This meant that grain grown in the United States and delivered to a primary elevator in Canada could not receive an official Canadian grade, even if the grain was of a variety that is registered in Canada. The United States perceived this as a barrier to trade with Canada and a trade irritant. Canada agreed to these changes in order to address these concerns