Grain Financial Protection Board business plan for the fiscal years 2020–2023

Executive Summary

The Grain Financial Protection Board (Board or GFPB) was established in 1985 and is classified as a Board-Governed Provincial Agency under the Agencies and Appointments Directive (AAD). The Board "administers funds or other assets for beneficiaries named under statute." The Board's mandate, strategies and activities have always been focused on prudent management of the Funds to ensure financial compensation is available to grain corn, soybean, wheat, and canola producers/owners when required. The Board's mandate of administrating the Funds, investigating, granting and refusing claims, and recovering money is directly linked to one of the ministry's goals of ensuring the sustainability of agriculture in Ontario.

Commitments for 2020-2023

The Board will continue to administer the Funds in a sound manner and this provides producers/owners with an effective risk management tool that allows them to remain competitive. The Board has outlined five strategic priorities for 2020-2023:

• To ensure long-term sustainability of the Funds administered by the Board;
• To ensure appropriate agreements are reviewed, understood and in place to fulfill its mandate;
• To work with ministry staff to explore alternative governance models as a potential option for the Board to consider;
• To continue to investigate and adjudicate claims in a fair and equitable manner; and
• To grant, refuse and recover claim payments under the Farm Products Payments Act (FPPA) as appropriate.

Revenue and Expenditures and Expectations for 2020-2023

The Board conducted its annual review of the Funds in September 2019 and compared the Funds' performance to the recommendations from the 2011 and 2016 actuarial reviews. As of 2018/19, all of the Funds have met the established target balances. Total revenue for 2018-19 was $857,330 and total expenses were $234,865.

Revenue

The Board receives revenue for the Funds from two sources. The first is in the form of producer check-off fees that are received when a producer sells one of the four commodities: grain corn, soybean, canola or wheat. Each commodity has its own check-off fee which is expressed in $/tonne. The Minister adjusted check-off fees in 2013 to assist the Funds in meeting the targeted Fund balances. No further adjustments are currently anticipated for 2020-2023.

Assuming that the projected sales of the four commodities would be similar to previous years, the projected check-off fees revenue will be approximately $460,000 per annum based on an average from the last five-years.

The second source of revenue is from investment interest earned on the balance of the Funds held. Due to the rise in Bank of Canada's key interest rates, GFPB's investments in Guaranteed Investment Certificates are providing a higher rate of return. As such, investment revenues are projected to be 2.2% in 2020-21.

Expenses

The Board has been able to effectively manage expenses over the past several years. For 2020-21, the budgeted expenses are estimated to remain the same compared to the previous year. The Board has budgeted an increase in expenses of one and half per cent per annum to capture the projected effect of inflation.

Ontario's 2019 budget committed the government to a review the financial protection programs to ensure that grains (and beef cattle) producers have access to stable risk management tools that provide the confidence to invest in and grow their businesses. As part of this review, the ministry introduced a new Minister's regulation (O. Reg. 467/19: Boards Payment of Expenses) under the Farm Products Payments Act (FPPA) to enable both financial protection boards to pay a greater range of delivery costs. The new regulation will help to ensure the programs' long-term sustainability and support any potential future enhancements to Ontario's financial protection programs. This change will result in an increase in Board expenses as of January 1st (2019/20 fiscal year and onward) in the budget. Prior to the regulation being made effective, the boards paid the costs related to: administering the financial protection funds; adjudication and payment of claims; recoveries; and a portion of the costs of determining the financial responsibility of dealers (part of licensing). Under the new regulation, the boards will also pay costs associated with licensing, inspections and enforcement under the Grains Act (GA) and the Livestock and Livestock Products Act (LLPA), as well some legal costs to administer the FPPA and investigative costs.

The Board includes a projected amount for claims as part of the proposed operating expenditures. For budgeting purposes, an amount of $263,000 annually has been included for each year. The Board anticipates it will generate enough revenue to cover all expenses in 2020/21.

The Board will continue to review and monitor the soundness of all the Funds on an annual basis, and will make recommendations to the Minister regarding the appropriate changes such as the level of check-off fees, as required.

Approximately every 5 years, the Board conducts an actuarial review, an initiative that involves a third party vendor, to determine how potential claim payments and/or expenditures may impact the Funds. The next actuarial review is planned for 2021/22, however with the new Minister's regulation requiring the GFPB to cover off all the GFPP program delivery costs, the Board is consideration to completing an actuarial review earlier than planned in order to examine this impact to the Funds.

Key achievements from 2019-2020:

• Chair and Minister reaffirmed the June 2017 Memorandum of Understanding (MOU)
• Review and management of Fund performance completed
• Board members participated in discussions of the ministry's review of the financial protection programs
• Business planning and risk assessment completed
• Appointment and re-appointment of Board members achieved
• Orientation for new board members completed
• Review of policies and guidelines undertaken.

In 2019/20, there were no claim applications submitted from producers wishing to claim for potential payment from the Funds.

The Board worked collaboratively with the ministry to make recommendations for vacant member positions. The Board continues to focus on the effective management of the Funds. All policies and guidelines are reviewed annually to both ensure that the material continues to be relevant, and that the members remain informed. The Board is focused on ensuring that appropriate agreements and directives are up to date and understood by the members so that they can continue to meet their commitment of agency transparency and accountability. Legal counsel is available to the Board and may be consulted to interpret agreements.

Mandate

The Board is responsible to the Minister of Agriculture, Food and Rural Affairs (Minister) and is constituted under the authority of the FPPA and the regulations made thereunder:

• O. Reg. 70/12 (Payments From Funds For Grain Producers)
• O. Reg. 321/11 (Fees Payable to Boards)

The Board's legislative mandate is set out in subsection 4 (1) of the FPPA as:

It is the function of a board and it has power,

1. To administer its fund;
2. To investigate all claims made to it under this Act and to determine the extent of their validity;
3. To grant or refuse the payment of claims or any part thereof and determine the amounts and manner of payment;
4. To recover any money to which it is entitled under this Act by suit in a court of competent jurisdiction or otherwise; and
5. to carry out the functions, and exercise the powers, prescribed by regulation.

The vision of the Board is to protect the financial interests of Ontario producers who have sold grain corn, soybeans, wheat and canola, as well as owners who stored grain with elevator operators. The Board's vision supports the Ontario Ministry of Agriculture, Food and Rural Affairs' (OMAFRA) goal of strong Agriculture, Food and Bio-Product Sectors and Strong Rural Communities; in particular, the business risk management components of this goal are support by the Board's vision.

Governance

The Board members are accountable to the Minister, through the Chair, for setting goals, objectives and the strategic direction for the Board. The Board operates under the authority set out in the FPPA and in accordance with the Memorandum of Understanding (MOU) between the Minister and the Chair. The MOU defines the relationship between OMAFRA and the Board, including the roles and responsibilities of the Minister, the Deputy Minister, the Board Chair and the Board members of the GFPB. Effective July 24, 2019, the Chair and Minister affirmed the continued used of the existing MOU (that was effective June 5, 2017). The MOU is effective until it is revoked or the Parties sign a new MOU. The MOU sets out the operational and reporting relationship between the Board and the Minister, and also outlines the administrative, financial and auditing arrangements with OMAFRA.

The Board must comply with provincial government directives that guide agencies in the delivery of services to the public. The Agencies & Appointments Directive is a Management Board of Cabinet Directive and sets out the requirements for the Board as a provincial agency.

Board Structure

The Board is comprised of a minimum of five members as appointed by the Minister for terms of up to three years. Members are eligible for reappointment. The Minister also has the authority to designate a member of the Board as Chair and another as Vice-Chair.

To ensure stakeholder confidence in its decisions, the Board requests stakeholders to identify candidates for recommendation to the Minister for appointment. Currently membership of the Board includes nominees from the Grain Farmers of Ontario (GFO), the Ontario Agri Business Association (OABA), and the Ontario Canola Growers Association (OCGA). These industry groups select candidates based on the Board's key competency needs of: industry experience as a primary agricultural producer or grain dealer; financial experience in accounting or investments; board governance and risk management. These key competencies enable the Board to continue to meet its mandate and enhance performance as a Board.

The Board typically meets quarterly, or as required by business demands (e.g. to review and adjudicate claims).

There are currently 12 Board members including the Chair and Vice Chair. Appendix 1 includes a list of the Board members.

Mandate letter from Minister

As part of the Agencies and Appointments Directive (AAD) the Minister issues an agency mandate letter to the Chairs of all board-governed agencies on an annual basis to inform their business plan. The GFPB Chair received the 2020-21 mandate letter from the Minister which outlines high-level, achievable expectations as follows:

• Ensure long-term sustainability and effective management of the Funds
• Continue to investigate and adjudicate claims in a fair and equitable manner
• Support the government's Open for Business objectives of reducing government expenditure and delivering cost savings to Ontario taxpayers
• Continue to support the ministry's review of the financial protection program to ensure they are aligned with the current agricultural risk management landscape and sector trends
• Meet all AAD provisions and requirements (i.e. agency attestation)

These will be measured and addressed in the GFPB's 2020-2023 business plan as follows:

• Annually review the performance of the Funds against established targets and annually review the Boards investment policy
• Annually review claims adjudication guidelines as well as ensure the processing of claims is completed fairly and with minimal delays
• Work with OMAFRA, to support the governments' Open for Business objective and the financial protection program review and to identify opportunities to ensure that grain producers have access to stable risk management tools
• Meet all AAD provisions and requirements (i.e. agency attestation)

Strategic Direction

The Board's strategic direction is focused on the following broad priorities which are essential in keeping with the Board's mandate and responsibilities:

• To ensure long-term sustainability of the Funds administered by the Board;
• To continue to investigate and adjudicate claims in a fair and equitable manner;
• To work with ministry staff to continue to explore alternative governance models as a potential option for the Board to consider;
• To grant, refuse and recover claim payments under the FPPA, as appropriate; and
• To ensure appropriate agreements are reviewed, understood and in place to fulfill the mandate.

To support the priorities outlined above, the Board has established five goals with corresponding objectives and activities that are used to assist with fulfilling their mandate. The goals which the Board focuses on are:

Ensure long-term sustainability of the Funds - The Board has hired Agricorp for the day-to-day administrative functions of the Funds; however, the Board is ultimately responsible for the oversight and management of the Funds. The Board annually measures the performance of the Funds against established targets. The Board will request actuarial reviews on the Funds periodically or as required and will only invest the Funds in instruments that are approved in the MOU. The Board has an established Statement of Investment Policy that is reviewed annually.

Maintain an adjudication process that is simple, fair and accessible with minimal delays - The Board has approved claim adjudication guidelines and has established operational procedures to assist with the processing of claims. These will assist the Board to ensure that the adjudication process is understandable, fair and has minimal delays.

Ensure agreements and directives are understood and documentation required under the MOU is in place - The Board reviews the documentation required under the MOU to ensure that it is both understood and that the appropriate documentation is on file. Legal counsel assists the Board with the review of the documentation.

Ensure a high performing Board - The Board works with OMAFRA and stakeholder groups to seek recommendations and approvals for appointments to the Board. The Board also maintains an orientation manual and provides new members with orientation and training.

Consult with industry stakeholders - The Board participates in a minimum of one stakeholder meeting every two to three years or more frequently, as needed.

Overview of Current and Future Programs and Activities

The following describes the Grain Financial Protection Program (GFPP or program) and the four Funds and the role of the Board in the GFPP:

Grain Financial Protection Program

The Grain Financial Protection Program was introduced in the mid-1980s, following a series of grain elevator bankruptcies. Under the Grains Act, Agricorp (a provincial Crown Corporation), through the designation of a Chief Inspector who has statutory authority on licensing, is responsible for delivering all aspects of grain dealer and elevator operator licensing and inspection components of the program. The following are the licensing components of the program:

• Determining the financial responsibility of grain dealers and elevator operators;
• Inspection of storage sites; and
• Licensing of grain dealers and elevator operators.

Grain Financial Protection Board Funds

• The Board administers four Funds: grain corn, soybean, canola and wheat.
• Income comes from producer check-off fees and the investment income generated from those fees.
• The purpose of the Funds is to provide producers/owners with financial compensation in the event that a dealer or elevator defaults on their obligation or if there is a storage shortfall.

Grain Financial Protection Board

The Board is a trust agency that operates under the legal authority as set out in the Farm Products Payments Act and Ontario Regulation 70/12. The Board manages the respective Funds for Grain Corn, Soybeans, Wheat and Canola Producers under the financial protection component of the program and adjudicates claims to those Funds.

• The Board will investigate and determine the validity of applications for potential payment from the Funds.
• They decide to pay or refuse to pay on a claim based on the evidence and certain situations described in the regulation.
• Payment to producers and owners is made after the Board has determined that their claim is valid and the Board has approved the claim for payment.
• The Board's main activities are to manage the Funds effectively and prepare for claims when they occur.

The Board administers the Funds and, as such, in addition to adjudicating claims, its focus is on the growth of the Funds and on prudent management of expenditures.

The Board does not administer any other program and no new programs are being considered for the 2020-2023 time frame.

Resources Needed to Meet Objectives of Mandate and Strategic Directions

Human Resources and Staff Numbers

The Board does not have staff. All resources are provided through a Service Agreement or as agreed to in the MOU between the Board and the Minister.

The Board currently has a multi-year service agreement with Agricorp to provide Governance, Secretariat and Financial Services to the Board. Resources that provide support to the Board have no role in the licensing and inspection components of the program. These functions are separate to avoid any perception of a possible conflict of interest in adjudicating the claims that arise from a licensed dealer's/ elevator operator's default in payment, while protecting the integrity of the program.

Resources, services, and support provided to the Board

Board service agreement with Agricorp

Both Governance/Secretariat and Financial Support services are provided to the Board by Agricorp as agreed to in the Service Agreement between the two parties. A multi-year service agreement for Governance, Secretariat and Financial Service Agreement was signed in 2017-18 for a three-year term (expiring March 31, 2020), with options to extend for two separate one-year terms. The Board has decided to extend the existing agreement with Agricorp for one separate year term for 2020/21 fiscal. There would then be the option to extend for another one-year additional term should the Board and Agricorp wish to exercise this option at that time.

Additional support services to the Board

The Board has additional support available for legal counsel and the investigation of claims. Through the MOU, these services are provided by the ministry to the Board. Effective April 1, 2020 these costs will be paid for by the Board.

• Investigative services are provided by the Agriculture Investigations Unit within OMAFRA's Food Safety & Traceability Programs Branch; and
• Legal counsel/ services are provided by the ministry of the Attorney General through the Ministry of Agriculture, Food & Rural Affairs Legal Services Branch.

At this time the Board is not considering other service providers for these services and will engage the ministry as part of these discussions if needed so that consideration can be given to the broader implications for the program and the ministry from a risk management perspective.

Environmental Scan

The Board is responsible through its mandate to manage the Funds and to adjudicate claims presented by producers and owners of canola, grain corn, soybeans, or wheat. Producers or owners may submit a claim to the Board to potentially cover a portion of their losses.

The factors that could impact the Board and/or the health of the Funds are outlined below.

External Drivers

Interest Rates

Interest rates play a significant role in the overall health of the Funds. The GFPB actuarial review indicated that the Funds are highly dependent upon investment income to cover projected expenses and claims. The review revealed that the current investment holdings are of high quality. The Board will need to continue to ensure that the Funds are invested in high quality investments that are consistent with the Trustee Act provisions referenced in the MOU and the Board's investment policy.

Elevator Operators and Dealers

In recent years there have been an increase in the number of smaller businesses offering grain elevator and/ or dealer services. Many of these are producers increasing their own on-farm storage capacity and using their surplus storage capacity to store grain for other producers. An awareness campaign by stakeholders has resulted in an increased knowledge of the requirement to deal with a licensed facility. Agricorp addresses unlicensed facilities and dealers as soon as they are apparent with sanctions under the Grains Act.

If a dealer or elevator is not licensed, a review of that organization's financial responsibility is completed. This may determine the risk that the organization will default on their obligations to a producer or owner. Agricorp occasionally receives complaints about unlicensed operators but the number has decreased from a few years ago when many producers increased on farm storage capacity and provided custom storage to neighbours while unlicensed. In the majority of the cases, the complaint has resulted in the operator completing an application and the issuance of a license for the grain elevator.

Out of Province Dealers

In the past few years, there have been a few dealers based in Quebec or the United States that require a license. Producers are free to sell and transport crops to other jurisdictions. But if operations are purchasing from Ontario producers, a license is required. There are several out of province dealers that are currently licensed.

Increased Demand for Government Accountability and Transparency

Increased scrutiny of both private and public sector organizations has resulted in increasing demands for accountability. Government, including agencies, need to perform their functions effectively and efficiently in a transparent and responsible manner. They must show that government directives are being complied with and outcomes are achieved through clear and regular reporting. The Management Board of Cabinet requires greater Board accountability, transparency, reporting and standardized risk identification and management. In response to the need for greater transparency, the Board completes and submits to the ministry a quarterly risk assessment report.

Legislative, Strategic and Policy Changes

The Board was established under the FPPA, which is administered by OMAFRA. Any change to the FPPA could have a direct, profound impact upon the Board and its activities. Through the MOU, the Minister and the Chair have agreed to work closely together when the Ontario Government is considering regulatory or legislative changes for the agency. The Chair and the Minister meet as required to discuss any legislative changes that may impact the Board.

As part of the April 2019 provincial budget announcement there was mention of a review of the financial protection programs and changes to the FPPA through Bill 100. The FPPA was amended January 1, 2020 that enables the Boards to pay for all licensing and enforcements costs for the programs, fund management and claims adjudication under the FPPA from the funds.

Financial Responsibility Review Committee (FRRC)

An important part of grain dealer and operator licensing involves determining the financial responsibility of dealers and elevator operators. The FRRC is established to support the determination of the financial strength of applicants. The FRRC includes an Agricorp staff member and two Chartered Accountants that review files and provide licensing recommendations to the Chief Inspector. The program helps to ensure that only financially viable operations are licensed to purchase from producers.

Commodity Prices

Commodity prices have experienced great volatility that may increase cash flow challenges and increase the amount of risk to the dealer/elevator and, in turn, to the Funds. This volatility has made it harder to predict the future of commodity prices.

Internal Drivers

Funds

The 2016 actuarial review indicated that the Funds are highly dependent upon investment income. The review indicated that the Board should consider making changes to the target fund levels compared to the previous actuarial report. The Board will consider if any of the actuarial review recommendations are needed to be implemented, and will continue to monitor all the Funds against the target levels to ensure they are growing or maintained at an appropriate level.

Board Expertise and Development

The Funds have a low frequency of claims. This makes it difficult for Board members to acquire "hands-on" claims adjudication experience. The Board annually reviews the Claim Adjudication Guidelines which assists Board members without previous claims experience to adjudicate claims. Board members bring a variety of skills and experience and an annual review of these guidelines promotes a consistent approach to adjudicating claims.

Board Knowledge Management and Succession Planning

Deliberate planning and consideration are given to the expiry date of members' terms to minimize the loss of experience and knowledge during member transition periods. A continuous review of existing Board members' terms is conducted. Appointment tenures are staggered, in part to promote continuity.

Performance Measures and Targets

The following indicators define the outcomes the Board is committed to achieving. These indicators are the basis for measuring and evaluating impact.

Implementation plan: Performance measures and targets for each objective are identified below. As part of its continuous improvement process, the Board has set goals to ensure that objectives are achieved. The Board also tracks progress against these measures and prepares an annual report.

Minimum Target Fund Balances are maintained as per actuarial review.

Financial budget

The estimated revenues and expenses for the next three years are provided in Table 1 (below). The Board has delegated the investment of the Funds to Agricorp, and the Funds are invested in instruments authorized under the Memorandum of Understanding (MOU) and as per the Board's investment policy.

Projected Board Revenues

The Board manages four separate Funds for grain corn, soybeans, canola and wheat. Revenue is received from producer check-off fees and interest earned on the balance of the Funds held. Producers contribute to the Funds by paying check-offs on crop that is sold.

The Minister adjusted the fees effective July 1, 2013. They are based on the volume of crop sold and are outlined for the four commodities below:

• Corn: 1/10 of 1 cent/tonne
• Wheat: 5 cents/tonne
• Soybeans: 10 cents/tonne
• Canola: 20 cents/tonne

The Minister has the authority to set these fees under the FPPA. The FPPA authorizes the Board to withdraw amounts from the Funds for specific purposes, such as to compensate producers for valid claims when a dealer has defaulted on a payment or to compensate owners when an elevator has defaulted on a storage responsibility.

The Board is subject to an annual audit by the Office of the Auditor General of Ontario.

Projected Board Expenditures

Governance/Secretariat and Financial Support Services - The FPPA requires the Board to meet all its expenses from the Funds except for the remuneration of those of its employees who are public servants employed under Part III of the Public Service of Ontario Act, 2006. The Board has entered into a contract with Agricorp, which expires on March 31, 2020 and have decided to extend the existing agreement with Agricorp for one separate year term for 2020/21 fiscal with the option to extend for one (1) additional term of one (1) year for these services.

Professional, Technical or Other Assistance to the Agency - An example of this type of cost would be an actuarial review. The next actuarial review is planned for 2021/22, however with the new Minister's regulation requiring the GFPB to cover off all the GFPP program delivery costs, the Board is consideration to completing an actuarial review earlier than planned in order to examine this impact to the Funds.

GFPB Legal Services & Investigation - Under the new Minister's regulation, effective April 1, 2020 the Boards will pay costs for services associated with legal counsel costs to administer the FPPA and investigative costs. Legal services also reviews any board agreements, governance documents and provides any other legal advice as requested. This is a new expense reflect in the board's financials for 2020/21 onward.

Board member Per Diems, Travel and Meal Expenditures - A financial review determined that Board remuneration (per diem and incidental costs, including travel) should be paid by OMAFRA and not from the Funds. This change came into effect in November of 2010.

Costs of Determining Financial Responsibility - Since November of 2010 and as indicated in the MOU, the GFPB is obliged to pay the person or persons who are responsible for determining whether grain dealer license applicants and grain dealer licensees are financially responsible. Agricorp is that person. The Board has signed a letter of understanding that expires on March 31, 2020 with Agricorp regarding the costs of determining financial responsibility.

With the new Minister's regulation, effective January 1, 2020 the Board will be paying the full program delivery costs. This change will result in an increase in Board expenses as of January 1^st (2019/20 fiscal year and onward) in the budget.

Claim Payments - All claim payments and associated costs are paid by the four Funds. The total cost depends on the number and complexity of the claims received by the Board and the amount of payments on approved claims. To date, claims have been infrequent.

Financial Responsibility Review Committee (FRRC) - this includes an Agricorp staff member and two Chartered Accountants that review files and provide licensing recommendations to the Chief Inspector. The present contract with the two Chartered Accountants expires October 2020.

Proposed Capital Expenditures

The Board does not have any capital expenditures planned for 2020-2023.

Table 1. Financial table - expenditure and revenue

Notes:

¹ 2019/20 forecasted interest rate of 1.70% and 2020/21 to 2022/23 forecasted interest rate of 2.2%

² Amount for claims are included for budgeting purposes only and are based on the information used in the 2011 and 2016 actuarial study.

³ Actuarial review - last actuarial review was last completed in 2016 (completed approx. every 5 years). Amount estimated based on cost of 2016 review. Next review is planned for 2021/22.

⁴ Effective April 1, 2020 the Board is responsible to pay legal services and investigative services for claims.

⁵ Expenses included in Determining Financial Responsibility/Licensing & Enforcement includes the program costs (determining financial responsibility and licensing), two FRRC member's and other administration (i.e.: bank charges). Effective January 1, 2020, the Boards pay the full program costs and for these budget years the cost does not net any dealer or license fees collected.

⁶ These numbers represent the actuals from the first three quarters of 2019-20 and a forecast for Q4.

Initiatives involving third parties

Approximately every 5 years, the Board conducts an actuarial review, an initiative that involves a third party vendor, to determine how potential claim payments may impact the Funds.

As an agency of the government, the Board adheres to the OPS Procurement Directive when making any purchases for goods or services from a third party vendor.

The next actuarial review is planned for 2021/22. The last actuarial review was completed in 2016.

Information Technology

All Information Technology support is provided by AgriCorp through the maintenance of ready access and secure storage of documents developed and received on behalf of the Board. The mandate of the Board does not require Electronic Service Delivery.

Risk Assessment and Management

The AAD requires a risk-based approach to be used to focus ministry and central agency resources on higher risk agencies and to ensure compliance with directive requirements. The table below provides a description of the risks identified and the plans to mitigate these risks. Aside from the actions detailed below, risk management is also supported by a strong commitment by the Board and its service provider to meet or exceed the performance measures outlined in this plan.

Communication Plan

Annually, the Board will inform the stakeholders of the status of the Funds by providing them with a copy of the Board's audited financial statements and annual report, following the Ministers approval of the document.

Schedule C of the MOU between the Board and the ministry outlines the communication plan that the Board will follow.

Key messages for communication

• Clearly outlines the process and regulations that are followed in making a decision.
• Identifies section(s) of the applicable Act(s) and regulations used to arrive at a decision.

Key messages for broad based communications

• All Funds are maintained on an actuarially sound basis.
• The Board adjudicates claims made under the FPPA and determines the payment, if any, to be made from the Fund.
• The FPPA protects the financial interests of producers who sell grain corn, soybeans, wheat and canola to licensed dealers. It also protects the financial interests of owners who store grain corn, soybeans, canola or wheat with licensed elevator operators.
• Agricorp is responsible under contract with OMAFRA to determine financial responsibility and administer the licensing and inspection components of the Grain Financial Protection Program.

Vehicle used to communicate key messages

• In the event of a claim, the Board will advise each claimant via letter on the outcome of their claim.
• The Minister will consult with the Chair, as appropriate, when significant new directions for the Board are contemplated. The Deputy Minister will meet with the Chair, as necessary, to discuss matters of mutual importance to the Board and OMAFRA.

Appendix 1. Current Board Appointees (as of February 24, 2020)

Appendix 2. History of claims (as of February 24, 2020)