2024–2025 Grain Financial Protection Board annual report

Message from the chair

On behalf of the Grain Financial Protection Board (GFPB or board), we are pleased to present to you the annual report for the fiscal year ending March 31, 2025.

The vision of the board is to protect the financial interests of Ontario producers who have sold grain corn, soybeans, wheat, and canola, and owners who stored grain with elevator operators. This is directly linked to one of the ministry’s goals of ensuring the sustainability of agriculture in Ontario.

In 2024–25, the board continued to focus on managing the funds to ensure sustainability and providing grain farmers with an effective risk management tool.

The board conducted an annual review on the performance of the funds. The balances and growth rates are compared to the recommendations in the 2021–22 actuarial report. As of March 31, 2025, all of the funds have met the minimum target balances and the overall fund balance increased from the previous year. The table on page 20 summarizes the results of each of the four funds (grain corn, soybeans, canola and wheat). There were no claims received in 2024–25 to adjudicate and no payments made for previous claims from the funds.

Since 2019, the ministry has led the review of Ontario’s legislation governing the financial protection programs (Grain Financial Protection Program and the Ontario Beef Cattle Financial Protection Program). New legislation, the Protecting Farmers from Non-Payment Act (Regulating Agricultural Product Dealers and Storage Operators), 2023 was passed in Spring 2023, but not yet proclaimed during 2024–25 fiscal year. In summer/fall 2023, the ministry consulted with stakeholders (including the board) on proposed regulatory changes to support implementation of the Act. During 2024–25, the ministry continued consultations to support regulatory development, including posting two discussion papers on the Regulatory Registry for 60-day comment period (February 27 to April 29, 2024). The board continued to operate under the Farm Products Payments Act, R.S.O. 1009, c. F. 10 (FPPA) throughout 2024–25 and will continue to do so until the new Act and it’s associated regulations are proclaimed and operationalized. The ministry have targeted fall 2025 effective date for proclamation of the new statute and the regulations. Any required updates to board operations or reporting will be addressed once the new Act and its regulations are in force.

The board continued to work collaboratively with the Minister of Agriculture, Food and Agribusiness and stakeholders throughout the year on appointing members to the board to address upcoming vacancies. In 2024–25, one existing members was reappointed and one member’s term expired. In August 2024, following an advertisement on Public Appointment Secretariat’s (PAS) website, an existing member was appointed as vice-chair. The total compliment is seven part-time members at the end of the fiscal year. A list of the board members for the 2024–25 fiscal year, is found on page 11 of this report.

Looking ahead, the board has committed to engaging an actuary due to environment changes that have occurred (i.e., interest rates; commodity prices) since the last actuarial review was conducted in 2021–22. In the meantime, the board will continue to monitor all the funds to ensure they are growing or maintained at an appropriate level. Once consultations on the proposed regulatory amendments are complete, the board will finalize next steps and timing to engage an actuary for the actuarial review.

The board will also continue to focus on ensuring the sustainability of the funds as we continue to meet our mandate.

Respectfully submitted,

Ron Campbell
Chair, Grain Financial Protection Board

Governance

The GFPB was established in 1985 and is classified as a board-governed provincial agency under the Agencies and Appointments Directive (AAD).

The board members are accountable to the Minister of Agriculture, Food and Agribusiness (the minister), through the chair, for setting goals, objectives, and the strategic direction for the board. It operates under the authority of the FPPA and in accordance with the Memorandum of Understanding (MOU) between the minister and the chair.

The board’s mandate, strategies and activities have always been focused on prudent management of the funds to ensure that financial compensation is available to grain corn, soybean, wheat, and canola producers/owners when required. The board’s mandate of  administering the funds, investigating, granting or refusing claims, and recovering money is directly linked to one of the ministry’s goals of promoting the sustainability of agriculture in Ontario.

Memorandum of Understanding

The MOU reflects the relationship between the GFPB and the Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA) and establishes the accountability framework between the minister and the chair. The MOU outlines the responsibilities between the minister, the chair, the deputy minister and the board as well the administrative, financial, and auditing arrangements with OMAFA.

Upon a change in minister or chair, the parties must either sign a letter of affirmation to the current MOU or sign a new MOU within six months. Following the appointment of the GFPB chair in November 2023, both parties affirmed the existing MOU (that was effective June 5, 2017) by signing the affirmation effective April 15, 2024.

Per the updates of the AAD in October 2024, all Ministries were required to update the MOU with their respective agencies based on a template provided and to have a new MOU in place and signed by February 1, 2025. Due to the election “writ” period, when the legislature was dissolved and the government was functioning in a custodial manner, the timeline could not be met. However, with the Minister of Agriculture, Food and Agribusiness appointed March 19, 2025, this is on track to be signed in 2025–26 fiscal year and will continue to reflect the current Farm Products Payments Act (FPPA) and its associated regulations. Once the new Act and regulation is proclaimed, the ministry will work with the board to update the MOU and any related agreements.

Board mandate, objectives and activities

The Grain Financial Protection Program (GFPP or program) was introduced in the mid-1980’s following a series of grain elevator bankruptcies. It helps protect producers of grain corn, soybeans, wheat and canola who sell these crops to licensed dealers. It also protects owners who store crops at licensed elevators.

The program has both a licensing and inspection component under the Grains Act and a financial protection component. Agricorp is under contract with OMAFA to administer the program and Agricorp appoints a chief inspector for the delivery and enforcement of the program per the Act (licensing, inspection, enforcement, complaints, communication, reporting and remittance collection for the board).

Mandate of board

The board is responsible to the minister and is constituted under the authority of the FPPA and its regulations:

• Ontario Regulation 70/12 (Payments From Funds For Grain Producers)
• Ontario Regulation 321/11 (Fees Payable to Boards)
• Ontario Regulation 467/19 (Boards’ Payment of Expenses)

The board’s mandate is set out in subsection 4 (1) of the FPPA,

4. (1) 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
   5. to carry out the functions, and exercise the powers, prescribed by regulation

The board’s primary focus and responsibility is on the administration and prudent management of the four funds (grain corn, soybeans, canola and wheat), as well to prepare for claims when they occur. The purpose of the funds is to provide producers/owners with financial compensation in the event that a dealer or elevator operator defaults on their obligation.

All revenue held in the funds that the board manages comes from producer check-off fees, investment income and recovery of money owed.

The board remained current on the claims procedure and is prepared to adjudicate claims when required. New board members were provided with claims adjudication training as needed which included an overview of the claims adjudication guidelines. The board makes decisions on claims based on the evidence and the law.

Minister’s letter of direction

In December 2023, Ontario’s Minister of Agriculture, Food and Agribusiness sent the 2024–25 letter of direction to the board chair setting out the Ontario government’s and the minister’s expectations of the board. The Ontario government wide expectations are addressed in the annual attestation memo sent to the minister. The board’s 2024–2027 business plan addresses the minister’s expectations of the GFPB for 2024–2025 and are reported on below.

To achieve its mandate and the minister’s, the board has established goals with corresponding objectives and activities. For 2024–25, the board established the following five goals and are reported on below:

1. Long-term sustainability of the funds — The board has hired Agricorp for the day-to-day administration 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 and for 2024–25 fiscal year the four funds meet the minimum target balances. 
   
   The 2021–22 actuarial review recommended an increase to the grain corn and canola check-off fee because at that time the risk of not achieving the target surplus position was increasing which indicated that the funding was insufficient.
   
   Following discussion with stakeholders, the board sent a letter to the minister recommending a change in the check-off fees for grain corn (from $0.001 to $0.019 per tonne sold) and canola (from $0.20 to $0.417 per tonne sold) based on the results to ensure these funds remain solvent. During 2024–25 fiscal year, there was no change to the check-off fees. Check-off fees are set under a minister’s Regulation so the board’s recommendation is being addressed as part of the financial protection program review.
   
   The board committed to engage an actuary in the 2024–25 fiscal year due to stakeholder feedback and environmental changes (i.e., interest rates; commodity prices) since the last actuarial review occurred in 2021–22. In 2024–25, the board prepared a scope document for this work, however due to the election “writ” period, the work was put on hold as agencies were asked to function in a custodial manner. The board will discuss this work once the “writ” period has ended and report on it at that time.

2. Maintain an adjudication process that is simple, fair and accessible with minimal delays — The board reviewed their claim adjudication guidelines and has established operational procedures (training materials) to assist with the processing of claims. 
   
   Claim adjudication training and/or refresher is provided to members prior to the board adjudicating claim(s) to provide all members with an overview of the claims adjudication process. These tools assist the board to ensure that the adjudication process is fair and has minimal delays.
   
   The board received no claim applications in the 2024–25 fiscal year. See Appendix 1 for a history of claims.
3. Ensure agreements and directives are understood and documentation required under the MOU is in place — The board reviews the documentation required under the AAD and MOU to ensure that it is both understood and that the appropriate documentation is on file to remain in compliance with both. Legal counsel is available to assist the board with any needed agreements and regarding claims as required. In 2024–25, the board met all obligations and timelines under the AAD and provided this assurance to the minister through the annual agency attestation in February 2025. See pages 14 to 16 for details. 
   
   Following the appointment of the GFPB chair in November 2023, both parties affirmed and signed the existing MOU (that was effective June 5, 2017) effective April 15, 2024 ensuring the appropriate governance documents are in place.

4. Consultation with Industry Stakeholders — The board generally participates in meetings with stakeholders every two to three years or more frequently, as needed. The last meeting was held in December 2022, which focused on the results of the 2021–22 actuarial study. 
   
   The board shared the 2023–24 GFPB annual report and the 2025–2028 GFPB business plan with stakeholders following minister approval.
5. Ensure a high-performing board — The board regularly reviews tenures of members at board meetings and works with OMAFA and stakeholder groups to fill any vacancies. The board works with OMAFA approximately six months in advance of a member’s term expiring to allow time to go through the process for potential reappointment and/or to fill any vacancy. For vacancies, the board requests the stakeholder group to identify qualified candidates for potential appointment. The board also maintains an orientation manual and provides new members with training. 
   
   This year, one member was reappointed and one member’s term expired. Additionally this year, the vice-chair role that had been vacant since February 2024 was filled in August 2024 by an existing member following an advertisement on Public Appointment Secretariat’s (PAS) website.  See page 11 for a list of board members.

Board key activities

The board held a total of 2 virtual meetings in 2024–25 fiscal year that focused on:

• reviewed and approved quarterly financial statements
• annual report, business plan and risk assessment
• reviewed and made investment decisions

Board staff/support

The board does not have staff. The board has entered into an agreement with Agricorp to provide the board with secretariat, governance and financial services support. Staff that provide the services to the board are not involved in the review and licensing of grain dealers/elevators. These functions are separate to avoid any perception of a possible conflict of interest when supporting the board in its adjudicating of claims.

In 2017–18, the board entered into a multi-year service agreement with Agricorp for governance, secretariat and financial services. This service agreement has been extended for four additional one-year terms. In January 2025, the board approved a decision to extend the service agreement for an additional one year term that expires on March 31, 2026.

Legal and investigative services

The minister’s regulation (O. Reg. 467/19) made under the FPPA required the board to pay legal and investigative costs effective April 1, 2020 (except costs related to any judicial reviews to the Divisional Court of the board’s decisions on claims and any appeals beyond).

Legal services are provided to the board by the Ministry of the Attorney General, Civil Law Division, OMAFA Legal Services Branch. Council provides the board with privileged and confidential advice regarding agreements, claims, any judicial reviews of board decisions, and regarding the recovery of monies owed to the board. Counsel also contributes to the continued education of board members on claims adjudication.

OMAFA’s Compliance, Enforcement and Intelligence Unit provides the board with investigative services upon request.

About the board

Board structure

Ontario Regulation 70/12 (Payments From Funds For Grain Producers) under the FPPA required that the board be composed of no fewer than five members appointed by the minister. Board members are generally appointed for terms of two or three years and may be reappointed. All members, including the chair and the vice-chair positions, are filled by minister’s appointment.

The membership of the board has been traditionally comprised of dealer and producer nominees from the grain industry:

• Ontario Canola Growers’ Association (OCGA)
• Ontario Agri Business Association (OABA)
• Grain Farmers of Ontario (GFO)

Appointees receive remuneration (i.e., a per diem) based on their role, as outlined in the AAD. These are paid by OMAFA and not from the funds. A summary of each member’s 2024–25 remuneration (not including travel expenses), as provided by OMAFA is noted below and is based on when members submitted and ministry processed.

In 2024–25, after the ministry posted an advertisement on the PAS website, an existing member was appointed by the minister to the vice-chair role effective August 6, 2024. Additionally, one member was reappointed and one members term expired.

The board continued to monitor members terms and act proactive to recommend nominees to the minister to fill vacancies to ensure it has the appropriate governance in place to fulfill its mandate.

The table below shows the members from April 1, 2024 to March 31, 2025:

Operational performance

The board is focused on effectiveness, efficiency, and reliability. Over the past fiscal year, the board implemented its business plan and has delivered on its goals and objectives. The table on pages 14 to 16 summarizes the board’s performance targets and results. The board met or exceeded all of its objectives.

The board remains compliant with directives, policies and agreements including meeting AAD requirements for the submission of the business plan and annual report to the minister. These documents are translated and publicly posted by OMAFA on its website following the minister’s approval.

Annual audit of financial transaction of the board

The OAGO conducts an annual audit of the accounts and financial transactions of the board. The funds (grain corn, soybean, wheat and canola) continue to meet the minimum target balances as outlined in the 2021–22 actuarial report (see page 14 for results).

A review of the financial protection programs

Since 2019, the ministry has led the review of Ontario’s legislation governing the financial protection programs (Grain Financial Protection Program and the Ontario Beef Cattle Financial Protection Program). New legislation, the Protecting Farmers from Non-Payment Act (Regulating Agricultural Product Dealers and Storage Operators), 2023 was passed in Spring 2023, but not yet proclaimed during 2024–25 fiscal year. In summer/fall 2023, the ministry consulted with stakeholders (including the board) on proposed regulatory changes to support implementation of the Act. During 2024–25, the ministry continued consultations to support regulatory development, including posting two discussion papers on the Regulatory Registry for 60-day comment period (February 27 to April 29, 2024). The board continued to operate under the Farm Products Payments Act, R.S.O. 1009, c. F. 10 (FPPA) throughout 2024–25 and will continue to do so until the new Act and it’s associated regulations are proclaimed and operationalized. The ministry have targeted fall 2025 effective date for proclamation of the new statute and the regulations. Any required updates to board operations or reporting will be addressed once the new Act and its regulations are in force.

Actuarial review as it relates to check-off fees and sustainability of the funds

The 2021–22 actuarial review recommended an increase to the grain corn and canola check-off fee because at that time the risk of not achieving the target surplus position was increasing which indicated that the funding was insufficient. Following discussion with stakeholders in December 2022, the board sent a letter to the minister to recommend an increase to the check-off fees for grain corn (from $0.001 to $0.019 per tonne sold) and canola (from $0.20 to $0.417 per tonne sold) to ensure these funds remain solvent. Wheat and soybean check-off fee would be unchanged.

Based on stakeholder feedback and environmental changes (i.e., interest rates; commodity prices) since the last actuarial review in 2021–22, the board committed to engage an actuary in the 2024–25 fiscal year. Late in the fiscal, the board prepared a scope document for this work. Due to the election “writ” period, the work was put on hold as agencies were asked to function in a custodial manner. The board will discuss this work once the “writ” period has ended and report on it at that time.

During 2024–25 fiscal year, there was no change to the check-off fees. Check-off fees are set under a minister’s Regulation so the board’s recommendation is being addressed as part of the financial protection program review.

The board has committed to engaging an actuary in the 2024–25 fiscal year due to stakeholder feedback and environmental change (i.e., interest rates; commodity prices) since the last actuarial review in 2021–22 was conducted. In 2024–25, the board prepared a scope document for this work, however due to the election “writ” period, the work was put on hold as agencies were asked to function in a custodial manner. The board will discuss this work once the “writ” period has ended and report on it at that time. In the meantime, the board will continue to monitor all four funds annually and make the appropriate recommendations for changes as needed.

Performance measures and targets

The board’s principal objectives for the fiscal year ending March 31, 2025 were as follows:

1. Maintain a solvent compensation fund managed in the best interests of grain producers and owners.
2. Conduct adjudicatory proceedings and issue decisions in a fair and timely manner.
3. Grant or refuse claims and seek recovery of claim payments.
4. Ensure that the board is compliant with directives, policies, and agreements.

The following indicators define the outcomes the board committed to achieving and are the basis for measuring and evaluating impact:

Minimum target fund balances are maintained as per 2021–22 actuarial review.

Analysis of financial performance

Since January 1, 2020, the board has been required to pay for all program delivery costs (licencing, enforcement, fund management and claims adjudication) as part of the new minister’s regulation (O. Reg. 467/19: Boards Payment of Expenses) made under the FPPA related to the administration of the Grains Act. Although the board is required to pay all administrative program expenses from the funds, they have no authority for licencing of individual dealers and/or elevator operators and enforcement under the Grains Act.

As well, since April 1, 2020, the board began to pay investigative and most legal costs under the FPPA associated with the adjudication of claims. Legal Services also reviews any board agreements, governance documents and provides any other advice as requested by the board. The board is not required to pay expenses related to judicial reviews of its decisions. The board continues to use the ministry to support its legal and investigative services. This cost share model resulted in an increase in board expenses being paid from the funds since that time.

Overall balance of the four funds

The GFPB’s fiscal year is April 1 to March 31.

The overall balance of the four funds at the end of 2024–25 fiscal year is $20.21 million which is an increase of over $0.98 million from the previous fiscal year. The following is a summary of the four funds at the end of 2024–25 fiscal compared to previous fiscal:

• the grain corn fund balance had a slight increase from $6.04 million to $6.14 million
• the soybean fund balance increased from $7.14 million to $7.70 million
• the wheat fund balance increased from $4.91 million to $5.20 million
• the canola fund balance had a slight increase from $1.12 million to $1.16 million

The check-off fees received are slightly higher than the previous year and the investment income is higher from the previous year due to some higher interest rates earned on some investments that matured in 2024–25.

Overall, the revenue generated in 2024–25 covered the expenses and there were no claims in 2024–25 fiscal year.

Revenue

Revenue from producer check-off fees that are received when a producer sells one of the four commodities, is higher in 2024–25 compared to 2023–24. See page 20 for details.

Annually, the board conducts a full review of their investment strategies, including the investigation of alternate strategies, to ensure that returns are maximized. The board conducts a review of their investment portfolio every quarter as well as when an investment is maturing. The board makes any changes necessary to ensure that they are maximizing their return on investments.

Changes to interest rates affects the board’s revenues. With the increase in investment interest rates from March 2022 to March 2024,  the board has capitalized on strong rates for some short term investments (i.e., 1 to 3 year terms). As a result, the board’s investment income provided a higher rate of return over the prior year. While interest rates are rising in the short term, there is an inverted investment curve indicating lower rates for longer terms (i.e., 3 to 5 years). The board’s strategy with investments considers a laddering approach when possible to reduce the influence of interest changes and to maximize investment returns. Interest rates have declined 225 basis points throughout fiscal 2025, with recent reinvestments occurring at rates lower than previously attained which will impact future investment returns. The interest earned on investments in 2024–25 provided a higher rate of return by 60 basis points or 13% from the previous year. The average return on investment in 2024–25 was 5.1% which is higher than 2023–24 at 4.5% due to the higher rates on investments held in the year.

Total revenue for 2024–25 was $1,557,497, compared to $1,349,939 in 2023–24. The increase from the previous year is due to a higher rate of return received from the board’s investments in 2024–25 fiscal.

The board will continue to monitor the check-off fees and annual growth rate of all four funds to ensure they continue to meet the targeted fund balances. All four funds continue to maintain the minimum target fund balances as per the 2021–22 actuarial reviews.

Expenses

The board continued to effectively manage expenses over the past several years.

Since November 2010 and as indicated in the current MOU, the board 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 provides these program services.

The expenses in 2024–25 for determining financial responsibility, licensing and enforcement (program administrative costs) were $515,493 which is an increase compared to $442,317 in 2023–24, however this is below the board’s budget. Generally the program administrative costs do fluctuate slightly on an annual basis for operational items such as addressing issues with licensing, elevator/dealer defaults, and providing information required for claim adjudication.

The expenses for governance, secretariat and financial services were slightly higher in 2024–25 at $56,883 compared to $55,892 in 2023–24 fiscal year. This increase from the previous year is primarily due to more financial services time spent for the OAGO audit.

In 2024–25, there were no claims received to adjudicate and no money paid from the funds for claims.

The board’s legal and investigative services expenses in 2024–25 were $173, compared to $49 in 2023–24 (comparable expense to the previous year). In 2023–24 and 2024–25 fiscal years, there were no claims, therefore, there were no legal services expenditures for claims adjudication and no expenses for investigative services.

Total expenses for 2024–25 were $572,549 compared to $498,258 in 2023–24. For a breakdown of revenue and expenses by fund, see page 20.

The following expenses are paid by the board to related parties:

• governance, secretariat and financial services and determining financial responsibility, licencing and enforcement are paid to Agricorp
• board legal and investigative services are paid to OMAFA

Financial table

The numbers have been rounded-up to the nearest dollar for ease of reporting purposes only.

Appendix 1: History of claims (as of March 31, 2025)

Appendix 2: Audited financial statements for year ending March 31, 2025

Management’s responsibility for financial reporting

The accompanying financial statements have been prepared by management, in accordance with Canadian Public Sector Accounting Standards. Management is responsible for the accuracy, integrity and objectivity of the information contained in the financial statements.  The financial statements include some amounts that are necessarily based on management’s best estimates and have been made using careful judgment.

In discharging its responsibility for the integrity and fairness of the financial statements, management maintains financial and management control systems and practices designed to provide reasonable assurance that transactions are authorized, assets are safeguarded, and proper records are maintained. The systems include formal policies and procedures and an organizational structure that provides for appropriate delegation of authority and segregation of responsibilities.

The board of directors is responsible for ensuring management fulfills its responsibilities for financial reporting and internal control. The board meets regularly to oversee the financial activities and annually reviews the financial statements.

These financial statements have been audited by the Office of the Auditor General of Ontario. The Office of the Auditor General’s responsibility is to express an opinion on whether the financial statements are fairly presented in accordance with Canadian Public Sector Accounting Standards. The independent auditor’s report, which appears on the following page, outlines the scope of the auditor’s examination and opinion.

Becky Philpott
Chief Financial Officer, Agricorp

Aron Nonkes
Controller, Agricorp

February 27, 2026

Independent auditor’s report

Auditor’s responsibilities for the audit of the financial statements

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the board’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the board’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the board to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Jeremy Blair, CPA, CA, LPA
Assistant Auditor General

February 27, 2026
Toronto, Ontario

The Grain Financial Protection Board (Funds for Producers of Grain Corn, Soybeans, Canola, Wheat)

Statement of financial position as at March 31, 2025

See accompanying notes to financial statements.

Approved on behalf of the board

Ron Campbell
Board chair

Jeff Barlow
Board vice-chair

The Grain Financial Protection Board (Funds for Producers of Grain Corn, Soybeans, Canola, Wheat)

Statement of operations and fund balances year ended March 31, 2025

See accompanying notes to financial statements.

The Grain Financial Protection Board (Funds for Producers of Grain Corn, Soybeans, Canola, Wheat)

Statement of cash flows year ended March 31, 2025

See accompanying notes to financial statements.

1. Establishment of the funds

The Grain Financial Protection Board (the board) was established in 1984 as an agency of the Ontario Government under the Farm Products Payments Act (FPPA).  It is an agency responsible for administering the funds for producers of grain corn, soybeans, canola and wheat (the funds). The funds were established to operate on a not-for-profit basis on behalf of the producers:

• Producers of grain corn — established November 3, 1984.
• Producers of soybeans — established November 3, 1984.
• Producers of canola — established July 22, 1989.
• Producers of wheat — established December 13, 2004. The Ontario Wheat Producers’ Marketing Board made a $1 million non-recurring unrestricted contribution to establish the fund.

The purpose of the funds, established through regulations, under the FPPA is to protect producers (of grain corn, soybeans, canola and wheat) against losses resulting from dealer payment default.  Effective July 1, 2012, producers can be reimbursed 95% of an approved claim for any defaults by dealers. The board attempts to recover any claims paid from the dealers.

Under Ontario Regulation 467/19, the board is responsible for all expenses relating to the administration of the FPPA and the Grains Act.

As a board-governed provincial agency, the Grain Financial Protection Board is exempt from income taxes.

2. Significant accounting policies

a) Basis of accounting

The financial statements have been prepared by management in accordance with Canadian Public Sector Accounting Standards (PSAS) for governments as recommended by the Public Sector Accounting Board of Chartered Professional Accountants of Canada (CPA Canada). The board has also elected to apply the section 4200 standards for government not-for-profit organizations.

b) Revenue recognition

The funds’ revenue includes fees from producers, investment income and claim recoveries.

Ontario Regulation 321/11 under the FPPA prescribes fees payable to the board on the sale of grain from a producer to a licensed dealer. These fees from producers are paid to either the Ontario Canola Growers Association (OCGA) or the Grain Farmers of Ontario (GFO) and are subsequently remitted to the board. Revenue is recognized when fees from producers are receivable from the OCGA and GFO.

Investment income is recognized as earned and amounts not yet received are included in the carrying value of investments.

Claim recoveries are recorded at their realizable value when the associated claim is approved for payment, unless management determines collecting the claim recovery is significantly doubtful, in which case it is recognized when payment is received.  Realizable value is the amount of cash expected to be received.  In determining realizable value of claim recoveries, management considers the amount of financial security, if any, provided by the defaulter under the requirements of the Grains Act.

c) Expense allocation

Expenses, other than legal and investigation and claims paid, are allocated to the four funds based on the proportionate value of each crop sold, with a minimum set at 5% (2024 – 5%). Legal and investigation and claims paid are allocated to the fund of the commodity being claimed.

d) Financial instruments

The funds’ financial instruments consist of cash, investments, accounts receivable and accounts payable. Investments include Guaranteed Investment Certificates (GICs) and notice plan deposits.

Financial assets and financial liabilities are recognized on the statement of financial position when the board becomes a party to the contractual provisions of the instrument. All financial instruments are assigned to one of two measurement categories at initial recognition – either fair value or cost/amortized cost. Financial assets and liabilities measured at cost/amortized cost are initially recognized at acquisition cost, including transaction costs that are directly attributable to the acquisition or issuance. Cash, accounts receivable and accounts payable are all measured at amortized cost and short- and long-term investments are all measured at fair value.

A statement of remeasurement gains and losses has not been presented as there is nothing to report therein.

All financial assets are assessed for impairment on an annual basis.  When a decline is determined to be other than temporary, the amount of the loss is reported in the statement of operations and fund balances.  Any unrealized gains and losses previously recognized in the statement of remeasurement gains and losses are reversed and recognized in the statement of operations and fund balances when realized.

The board is required to classify fair value measurements using a fair value hierarchy, which includes three levels of information that may be used to measure fair value:

• Level 1 — unadjusted quoted market prices in active markets for identical assets or liabilities.
• Level 2 — observable or corroborated inputs, other than level 1, such as quoted prices for similar assets or liabilities in inactive markets or market data for substantially the full term of the assets or liabilities.
• Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.

e) Measurement uncertainty

The preparation of financial statements in conformity with PSAS requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses.  There are no amounts recognized or disclosed in the financial statements where the effect of measurement uncertainty is material to the financial statements.

3. Investments

The fund’s portfolio has interest rates ranging from 3.58% to 6.50% (2024 — 2.38% to 6.50%) with maturities ranging from June 2025 to February 2029 (2024 — June 2024 to March 2027).

4. Claims

There were no claims paid or claim recoveries in 2025 (2024 — $nil).

5. Financial instruments risk management

a) Market risk

Market risk is the risk that changes in market prices will affect the fair value of reported assets and liabilities. Market factors include three types of risk:  interest rate risk, currency risk and equity risk. The funds are not exposed to significant currency or equity risk as they do not transact in foreign currency or hold equity financial instruments. The funds operate within the constraints of the investment policy, which restricts the investments to highly liquid, high-grade instruments such as deposit notes, bonds, debentures, and other forms of indebtedness, issued by federal and provincial governments, and domestic financial institutions.

b) Interest rate risk

Interest rate risk refers to the adverse consequences of interest rate changes on the funds’ financial position, operations and cash flow. Fluctuations in interest rates have a direct impact on the market valuation of the funds’ fixed income securities portfolio.

Although investments are generally held to maturity, realized gains or losses could result if liquidation of investments is required to meet obligations.  There have been no significant changes from the previous year in the exposure to risk or to the policies, procedures and methods used to measure the risk.

c) Credit risk

Credit risk is the risk that other parties fail to perform as contracted. The funds are exposed to credit risk principally through balances receivable from the OCGA and GFO, as well as through its investment securities.

Credit risk on balances receivable arises from the possibility that the entities that owe money to the funds may not fulfill their obligation. Collectability is reviewed regularly and an allowance for doubtful accounts, if necessary, is established to recognize the impairment risks identified.

Credit risk on investment securities arises from the funds’ position in GICs and notice plan deposits. Board investment policy restricts the types of investments to high-grade Canadian debt instruments, which significantly reduces credit risk.

6. Related party transactions

The board entered into an agreement with Agricorp, a provincial agency under common control by the Province of Ontario, to provide financial responsibility review, licensing, enforcement, financial, governance and secretariat services.  These services provided by Agricorp amounted to $568,604 (2024 — $493,943) and are included in the respective expenses on the Statement of Operations and fund balances.

The board is responsible to pay for expenses related to legal and investigation services provided by the ministry of Agriculture, Food and Agribusiness (OMAFA).  In the current year, legal and investigative services amounted to $173 (2024 — $50) and are included in expenses on the Statement of Operations and fund balances.