Grain Farmers of Ontario has the power to negotiate the terms and conditions of sale for corn or soybeans produced in Ontario but does not physically buy or sell the crop. Grain Farmers of Ontario is financed by license fees, which are deducted from the producer by the dealer at the time that the producer sells his or her commodity.
Ownership of corn or soybeans remains with the producer while the corn or soybeans are in storage, until the producer sells his/her corn or soybeans to a dealer and obtains payment. A dealer who purchases corn or soybeans may then resell them to a processor, broker, export market, for seed or other purposes.
Regulations require a Dealer’s Monthly Report to be filed with Grain Farmers of Ontario by the 15th day of each month for the previous month’s producer marketing.
If no commodities are marketed during the month, a NIL report must be submitted to the board.
Dealers who are computerized may submit computer printouts or individual copies of producer receipts, along with the Monthly Report form as a summary page, to be signed by the dealer.
For the 2015 Crop Year the fees are as stated above. The license fee is deducted from the producer by the dealer and remitted to the Grain Farmers of Ontario with the Dealer Monthly Report. The license fee should be calculated on total tonnes sold by the producer, taken to the third decimal point. A penalty of 2% per month will be assessed against dealers who are late in submitting license fees to Grain Farmers of Ontario.
Harmonized Sales Tax (HST)
Deductions are required at the rate of 13% on the total board fees. Grain Farmers of Ontario HST Registration number is 82972 7064 RT0001.
40.764 x 1.56 = $63.59
HST (13% x 63.59) = $8.27