Grain Financial Protection Board business plan for the fiscal years 2026–2029

Executive summary

The Grain Financial Protection Board (“GFPB” or “board”) continues to focus on the administration of four funds (the Funds for Canola Producers, the Fund for Grain Corn Producers, the Fund for Soybean Producers and the Fund for Wheat Producers) in a sound manner, and thus, provide producers and owners with an effective risk management tool that allows them to remain competitive. The board has outlined four strategic priorities for 2026-2029:

• To ensure long-term sustainability of the funds administered by the board.
• To continue to review, investigate and adjudicate claims in a fair and equitable manner.
• To grant, refuse and recover claim payments under the Protecting Farmers from Non-Payment Act and Ontario Regulation 377/25: Grain, as appropriate.
• To ensure appropriate agreements are reviewed, understood and in place to fulfill the mandate.

Effective January 1, 2026, the Ontario government has brought into force the Protecting Farmers from Non-Payment Act (Regulating Agricultural Product Dealers and Storage Operators), 2023 (“PFFNPA” or the “Act”), along with the associated new regulation, Ontario Regulation 377/25: Grain. Previous to this new Act, the board was operating under the Farm Products Payments Act, (“FPPA”). The Act and regulation govern the Grain Financial Protection Program (“GFPP” or “program”) for grain producers and owners. The program provides access to stable and responsive risk management tools for their businesses. The Act and regulation are a result of consultations and discussions the ministry led with stakeholders since 2019. While key components of the GFPP will remain unchanged, the new legislation does include some updates to strengthen and modernize the framework. See page 9 for a summary of the impacts of the changes to the board. The board continues to work with the Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA) to ensure successful implementation of the Act.

In 2025–26, the board had planned to engage an actuary with specific scope to update the 2021–22 models for grain corn and canola only based on environment changes that have occurred (i.e., interest rates and commodity prices) since the last actuarial review was conducted in 2021–22. The 2021–22 actuarial review had indicated a recommended change to the check-off fee for these two commodities. However, given timing of the operationalization of the PFFNPA and new regulation for January 1, 2026, the board has decided to hold off and complete a full actuarial review on all four funds in 2026–27 fiscal year. This timing aligns with the board’s governance practice which are to conduct an actuarial review approximately every five years.

In fiscal 2025 and fiscal 2026, the Bank of Canada decreased its policy rate in a series of cuts from 5% in April 2024, to the present rate of 2.25% as of January 28, 2026. This has resulted in a decrease in interest rates throughout the fiscal year impacting interest income on cash accounts and investment income. Currently, investments maturing in the 2026 fiscal are being renewed at lower rates than the previous fiscal. The board does project a decrease in investment income returns for fiscal years 2026 to 2029. The board’s investment strategy utilizes a laddering approach when possible, to reduce the influence of interest changes and to maximize revenue. The board continues to review investments on a quarterly basis and make adjustments as needed.

Overall, based on the board’s projections for 2026–2029, it is anticipated that enough revenue will be generated to cover the expenses for administrative program delivery and board support service, however claims are the unknown factor relevant to the board’s operating expenses. A projected amount of $347,000 is included annually for budgeting purposes to be paid out of the funds for claims paid. Revenue is also very dependent on the interest rates and check-off fees.

The board will continue to work 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 ensure that the material continues to be relevant and that the members remain informed.

Mandate

The GFPB was established in 1985 and is classified as a trust agency under the Agencies and Appointments Directive (“AAD”). The board’s mandate of administrating the four funds (grain corn, soybean, wheat and canola), 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.

The board’s mandate is set out in Section 29 of the Act as:

29. A board has the following functions and the powers to carry out those functions:
    1. To manage and administer its fund or funds.
    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, under this Act or prescribed by regulation.

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 and owners when required.

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 OMAFA priorities of a thriving agri-food and agribusiness sector through innovation and investments.

Governance

The board is 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 PFFNPA and O. Reg. 377/25 and in accordance with the Memorandum of Understanding (MOU) between the minister and the chair.

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

Memorandum of Understanding (MOU)

The MOU defines the relationship between OMAFA and the board, including the roles and responsibilities of the minister, the deputy minister, the board’s chair and the board members. 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 OMAFA.

In October 2024, all ministries were required to update the MOU with their respective agencies based on a template provided, per the updates of the AAD. The board chair and minister signed this MOU effective July 28, 2025 which reflects the previous FPPA and the regulations under that. Updates are required to this MOU as a result of the new Act and regulation that came into effect January 1, 2026. OMAFA are working with the board in 2026 to update the MOU and any related agreements.

Board structure

Effective January 1, 2026 under the PFFNPA the board shall be comprised of at least three (3) members and no more than nine (9) members as appointed by the minister. Terms are usually up to three years. Members are eligible for reappointment. The minister also has the authority to appoint a chair and a vice-chair.

To ensure stakeholder confidence in its decisions, when there is a vacancy, the board requests stakeholders to identify candidates for recommendation to the minister for potential appointment. Section 9 of O. Reg. 377/25 specifies that the board must include at least one (1) individual representative from each of the following:

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

These industry groups are asked to 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; experience in board governance; and risk management. These key competencies enable the board to continue to meet its mandate and enhance its performance.

Currently, if either the chair or the vice-chair position are vacant, the ministry will publicly post a job advertisement on the Public Appointments Secretariat (PAS) website where current board members and the general public can apply.

There are currently 9 board members including the chair and vice-chair. Appendix 1 includes a list of the board members.

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

Minister’s letter of direction

As part of the AAD process, the minister issues the agency a minister’s letter of direction to the chairs of all board-governed agencies on an annual basis to outline high-level, achievable expectations for the upcoming fiscal year to inform their business plan. The board’s chair received the letter of direction for 2026–27 from the minister on October 24, 2025 (see Appendix 4 for a copy of the letter). The board has aligned its strategic approach and priorities to support the minister’s expectations for 2026–27 as follows:

Overview of current and future financial protection programs and activities

The following describes the GFPP (“program”), the four funds and the role of the board within the GFPP:

Grain Financial Protection Program

The GFPP was introduced in the mid-1980s, following a series of grain elevator bankruptcies. The GFPP program is comprised of the licensing component under the PFFNPA (previously the Grains Act). The program helps protect producers who sell grain and oilseeds to licensed dealers and owners who store grain with licensed elevator operators.

Annually, all dealers and elevator operators must be licensed. Payments to producers must be made within specified timelines.

Under the PFFNPA, Agricorp (a provincial Crown Corporation), has been prescribed as the delegated authority to administer the delegated provisions of the Act and the grain regulations. Agricorp has appointed a director (previously referred to as the 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 GFPP. The following are the licensing components of the GFPP:

• annually determining the financial responsibility of grain dealers (to be licensed dealers must prove they are financially viable or provide security)
• inspection of storage sites
• issuing, suspending, and revoking licenses; holding hearings; compliance and enforcement

As part of the GFPP, producers are required to pay a check-off fee on each tonne of grain and oilseed sold. The check-off fee is remitted by the licensed dealer who forwards it to the Grain Farmers of Ontario (GFO) and the Ontario Canola Growers (OCG) for remission to the GFPB.

Effective 2026, there are updates to the GFPP as a result of the proclamation of the PFFNPA and regulations. These changes have been made following consultation with stakeholders that help to strengthen protection for grain seller. The regulatory changes are being implemented in two phases with most changes effective January 1, 2026. The ministry are targeting a regulatory amendment as of April 1, 2026 (items marked with an asterisk (*) are subject to approval of this regulatory amendment). The following is a summary of the program changes:

• Written agreements are required to purchase or sell on behalf of or store and must meet the requirements out in the regulation.
• The annual licence fee and the shortfall permit fee is increasing*.
• Clarity that dealers would have to provide proof of financial responsibility or security (if required) in order for a license to be deemed to continue pending review and renewal*.
• The licence renewal submission deadline to submit renewal package would shorten from 60 to 30 days, giving dealers more time to gather and submit required documents (this is consistent with requirements under the Beef Cattle Financial Protection Program)*.
• The regulation will clearly define financial security to mean letters of credit and/or bond, should this be required by a licensed dealer*.
• Small dealer exemption threshold increased to $50,000 (from $15,000)*.
• The licence registry which is publicly posted on Agricorp’s website under the GFPP program content, will be expanded to include items listed per regulation.
• New compliance orders and administrative penalties available for the director to issue to licensed dealers (administrative penalties will not be implemented until after July 1, 2026 to allow time to set-up the process, tools and training).
• Defaulters and/or operators may be required to cover board costs to conduct a claim through a cost order, which can be appealed to the Tribunal. Operators may also be required for costs associated with the director taking action to protect (seize) stored grain. Claimants may also be required to cover board costs if the board found the claim to be frivolous, vexatious or made in bad faith, where the board has procedures for such claims.
• The licensing appeals process has been updated which will limit the Tribunal’s power to reviewing a Director’s decision.

In December 2025, the ministry communicated these program changes to industry stakeholders using an information sheet which is posted on Agricorp’s website. The content on Agricorp’s website has been updated and is current for GFPP producers and licensed dealers and operators.

The funds

There are four separate funds: grain corn, soybean, canola and wheat. The purpose of the four funds is to provide producers and owners with financial compensation in the event that a dealer or elevator operator defaults on their obligations.

All revenue income held in the funds comes from the mandatory producer check-off fees and investment income generated from those fees.

Investment income is an important source of revenue for the funds. As such, currently investments are structured and managed to provide a maximum rate of investment return while assuming a low risk tolerance. The GFPB has a statement of investment policy, reviewed annually, that guides investments prior to any board decision. The board’s asset mix currently includes investments that guarantee face value at redemption; generally, this includes Guaranteed Investment Certificates (GIC) issued by financial institutions or similar financial instruments.

The PFFNPA 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.

Per Ontario Regulation 377/25: Grain, the GFPB is responsible to pay all expenses relating to the administration of the following:

Expenses incurred related to the funds:

• The administration of the Funds for Canola Producers, the Fund for Grain Corn Producers, the Fund for Soybean Producers and the Fund for Wheat Producers, including actuarial studies of those funds.
• The adjudication of claims for payments from the funds.
• The recovery of money the board may be entitled to receive.
• Communications and educational activities respecting claims.
• The investigation of claims for payment from the funds.
• Legal fees associated with the above PFFNPA.

Expenses incurred related to licensing of grain dealers and operators:

• Licensing under the PFFNPA (issue, refusal, renew, suspend, revocation, impose terms and conditions).
• The determination of the amount of security a person is required to pay to the director under the PFFNPA.
• The issuance or refusal to issue a shortfall permit.
• Requests for a hearing by the director in connection with licensing under the PFFNPA.
• Inspections under the Act.
• The exercise of the director’s powers (including issuance and carrying out of any orders under section 68 (1) of the Act.
• Communications and education activities in relation to licensing.
• Actions taken to determine whether a person should be referred to the ministry for potential prosecution for an offense.

The funds are not used for:

• Board remuneration (i.e., board member per diems, travel and meal expenditures) as this is provided by the ministry.
• Expenses related to appeals to the Agriculture, Food and Rural Affairs Appeal Tribunal; judicial reviews; prosecutions of offences; and legal fees associated with respect to these matters.
• Legal fees associated with licensing.

Grain Financial Protection Board

The board is a trust agency that operates under the legal authority as set out in the PFFNPA and Ontario Regulation 377/25: Grain. The board members are industry representatives appointed by the minister to manage the four producer funds (i.e., fund and investment management) and adjudicate claims (i.e., review and determine claim validity and how much a producer is eligible to receive in the event of approved default).

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 GFPB endeavours to ensure there is adequate money in each of the four funds to pay for all expenses and to pay any valid claims.

Producers may submit a claim to the GFPB to possibly cover a portion of their losses if a licensed dealer and/or elevator operator defaults and does not meet their payment or storage obligations.

• The GFPB will review and determine the validity of applications for potential payment from the funds (i.e., investigation may occur).
• The board decides to pay or refuse to pay a claim based on the evidence and the provisions of the PFFNPA and the regulation.
• Payment to producers and owners is made only after the board has approved the claim for payment.
• The board’s main activities other than claim adjudication are to manage the funds effectively and to prepare for claims when they occur.

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

The board does not administer any other program and no new programs are being considered for the 2026–2029 timeframe.

As part of the new PFFNPA and regulatory changes that are being implemented in 2026, the following is a summary of the changes to the board, primarily to give the board new powers to help carry out its role more effectively:

• The Act sets out the minimum and maximum members for board composition.
• The regulation specifies that the board must include representatives from the industry (see page 4 for list of industry representatives). The board will continue to work with ministry staff to seek re-appointment/ new appointments to reduce the risk of not meeting this requirement.
• The board will be permitted to delegate any of its powers to a committee (e.g., subcommittee of the board such as financial committee). At this time the board is not planning to use this power but will discuss annually if a committee of the board needs to be established.
• The board will have new powers to recover money owed including ordering payment of costs incurred to conduct the claims proceedings and a streamlined process to collect debts owing to the board. The board will work to update their claims process in 2026.
• If one of the funds lacks sufficient credit to pay a claim, it may borrow from another fund it manages or obtain loans from banks and loan guarantees from the province.
• The grounds for which the board can deny a claim has been expanded to include not paying check-off fees and not having an agreement set out in the regulation.
• The board is empowered to make producers for dealing with frivolous or vexatious claims or claims made in bath faith without holding a full hearing. In addition, there are additional grounds available to the board to reject a claim (e.g., not paying check-off fees, not having a written agreement in place).
• The board needs to create a financial bylaw which must be approved by the Ministry of Finance.

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 grant, refuse and recover claim payments under the PFFNPA, as appropriate.
• 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:

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 (i.e., administration services to the GFPB for fund management, claim adjudication, governance and secretariat administration services). Updates are required to this agreement as a result of the new Act and regulation that came into effect January 1, 2026. The ministry has a deliverable as part of the implementation of the new Act to work with the board and Agricorp in 2026 to update any related agreements.

Resources, services, and support provided to the board

Governance, secretariat and financial support services are provided to the board by Agricorp as agreed to in the service agreement between the two parties. Staff that provide support to the board have no role in the licensing and inspection components of the GFPP. These functions are separate to protect the integrity of the GFPP and to avoid any perception for an apprehension of bias when the board adjudicates claims.

Additional support services to the board

The board has additional support available for legal counsel and the investigation of claims. These services are provided by the ministry to the board and since April 1, 2020, these costs are paid for by the board:

• Investigative services are provided by the Compliance, Enforcement and Intelligence Unit (CEIU) within OMAFA’s Agri-Food Protection Branch.
• Legal services are provided by OMAFA Legal Services Branch of the Ministry of the Attorney General.

At this time the board is not considering other service providers for these services. If other service providers are considered, the board 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 following is a summary of potential internal and external factors that could affect the board and/or the health of the funds.

External drivers

Interest rates 

Interest rates play a significant role in the overall health of the funds. From March 2022 to March 2024, interest rates increased providing a higher rate of return for the board on their investments. However, as a result of a decrease in interest rates in fiscal 2025 and 2026, interest income is projected to decrease for 2026 to 2029. The board’s investment strategy utilizes a laddering approach, when possible, to reduce the influence of interest changes and to maximize revenue.

Overall, interest returns for fiscal 2026 are forecasted to be 3.9%. Returns are anticipated to drop in 2027 fiscal year to 3.17% with decreases to continue the following two fiscal years with future investment returns of 3.07% in fiscal 2028 and 2.92% in fiscal 2029.

The board will continue to review investments quarterly 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, while also considering the current low interest rates.

Commodity prices

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

Elevator operators and dealers

In recent years there has 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 actions under the PFFNPA.

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. Currently the program does license out of province dealers.

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 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 and an annual agency attestation and meets required Ontario Public Sector (OPS) directives.

Legislative, strategic and policy changes

The minister has responsibility for the legislation governing the program. Any change to the legislation and regulation could have an impact on the board and its activities.

In October 2024, there were changes to the AAD. The board is working to incorporate these changes into processes and reporting in the 2025–26 annual report such as participating in a chair-minister quarterly meeting.

With the new Act and regulations coming into force in 2026 which governs the GFPP, they are intended to provide producers and owners with greater access to stable and responsive risk management tools for their businesses. The Act and regulation are a result of consultations and discussions the ministry led with stakeholders since 2019. While key components of the financial protection programs will remain unchanged, the new legislation does include some updates to strengthen and modernize the framework. As a result, the board is updating and creating new processes and documents to incorporate the changes that have a direct impact on the board.

Internal drivers

Funds

The board conducted an actuarial review in 2021–22 which indicated that the funding is not sufficient and recommended the grain corn and canola check-off fees be increased in the near future to ensure these funds remain solvent. The actuarial review results and recommendations were shared and discussed with stakeholders and the board respectfully recommended to the minister a change in the check-off fees for grain corn and canola.

The actuarial review is a point in time report and in 2025–26, the board had planned to engage an actuary with specific scope to update the 2021–22 models for grain corn and canola only based on environment changes that have occurred (i.e., changes to interest rates; commodity prices) since the last actuarial review was conducted in 2021–22. However, given timing of the operationalization of the PFFNPA and new regulation for January 1, 2026, the board has decided to hold off and to complete a full actuarial review on all four funds in 2026–27 fiscal year. This timing aligns with the board’s governance practice which would be to conduct an actuarial review approximately every five years.

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 and claims training is held to assist board members 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

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 review of current board members’ terms is conducted at every board meeting. When providing candidates to the minister for consideration, it is recommended that tenures are staggered in part to promote continuity on the board.

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 (target is per 2021–22 actuarial review).

Financial budget

The estimated revenues and expenses for the next three years are provided in Table 1 (below). The board is subject to an annual audit by the Office of the Auditor General of Ontario.

The financial audit of the 2024–25 fiscal year was completed in February 2026 with an unqualified opinion. Total revenue for 2024–25 was $1,557,497 and total expenses were $572,549 (no claims paid out). The balance of the four funds was $20,205,509 as of March 31, 2025.

Projected board revenues for 2026–2029

The board receives revenue for the four separate funds from two sources. Revenue is received from producer check-off fees and interest earned on the balance of the funds held. 

Check-off fees

Producers contribute to the funds by paying check-off fees 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 and outlined in regulation. Current fees are outlined below: 

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

Assuming that the projected sales of the four commodities would be similar to previous years, the projected check-off fees revenue for 2026–29 will be approximately $504,600 per annum based on an average from the last three-years plus current year activities.

For out-year planning purposes, the board is assuming no change in the check-off fee at this time to any of the funds. The scope of the board’s 2026–27 actuarial review will include consideration of whether a change in the check-off fee is needed. The board will bring forward any recommendations arising from the review to stakeholders and the minister. In the meantime, the board will continue to monitor the funds to ensure they are growing or maintained at an appropriate level.

The last adjustment to the fees was approved by the minister effective July 1, 2013. This was an increase in the soybean check-off fee and a decrease in the wheat check-off fee. No change was made to the grain corn or canola check-off fees.

Investment interest

The second source of revenue is from investment interest earned on the balance of the funds held. Investment income has decreased in fiscal 2026 due to the drop in the policy rate by the Bank of Canada and investment renewals in the current fiscal year at lower rates than those on investments maturing in the year.

In fiscal 2025 and fiscal 2026, the Bank of Canada decreased its policy rate in a series of cuts from 5% in April 2024 to the present rate of 2.25% as of January 28, 2026. This decrease in interest rates has impacted interest income on cash accounts. Investments maturing in fiscal 2026 are being renewed at lower rates than the previous fiscal year.

As interest rates weakened in fiscal 2025 and fiscal 2026, and through the laddering of investments to reduce the influence of interest changes to maximize returns, overall returns for the next year are expected to decrease in each of the next 3 fiscal years. Overall, interest returns for fiscal 2026 are forecasted to be 3.9%. Returns are anticipated to drop in the next fiscal year to 3.17% for fiscal year 2027 with decreases the following two fiscal years with expected future investment returns of 3.07% in fiscal 2028 and 2.92% in fiscal 2029.

The board’s current strategy with investments considers a laddering approach when possible, to reduce the influence of interest changes and to maximize returns. The board will continue to review investments on a quarterly basis to ensure that the funds are invested in high quality investments and make adjustments if needed, that are consistent with the Trustee Act provisions referenced in the MOU and the board’s investment policy.

Projected board expenditures for 2026–2029

The board has been able to effectively manage expenses over the past several years.

With the new legislation and regulation effective January 1, 2026, the board is projecting all expenses relating to the administration of program (expenses related to annually determining financial responsibility of dealers, licensing, inspections and enforcement) and expenses related to the administration of the funds (fund management and claim adjudication) to increase. It is assumed that operational cost will be higher in the first year due increased follow-up as a result of the program changes (e.g., increased escalations in the first year that require resolution follow up).

Appointees receive remuneration (i.e., per diem, travel and meal expenditures) based on their role and as outlined in the AAD for board meetings, training and orientation. This is paid by OMAFA and not from the funds.

Expenses related to regulatory matters with respect to licensing grain under the Act:

Financial responsibility review, licensing, inspection and enforcement

As indicated in Ontario Regulation 377/25, the board is obliged to pay Agricorp for licensing activities such as determining financial responsibility of dealers, licensing, inspections and enforcement.

The projected expenses for 2026-2029 reflects the board paying for program delivery expenses of the GFPP (except as specified in O. Reg. 377/25). Although the board is required to pay all administrative program expenses from the funds, they have no authority in the licensing process and in enforcement regarding individual dealers and/or elevator operators under the PFFNPA. This authority remains Agricorp’s.

Financial Responsibility Review Committee (FRRC)

The FRRC was established in the 1980’s to provide third party expert advice related to the determination of the financial strength of GFPP applicants. The FRRC includes two third-party chartered accountants that are procured by Agricorp to review all licensee files and provide advice and recommendations to the director regarding the financial risk assessment of grain license applications. The FRRC members review approximately 300 files annually. In 2023, Agricorp signed a renewal contract with the two existing FRRC members with the agreement term expiring October 2027. The FRRC services and role are documented in a terms of reference document.

The board is responsible to pay for most administration of the GFPP effective January 1, 2020, which includes FRRC expenses.

Expenses related to the fund management:

Under O. Reg. 377/25 the board is required to pay expenses incurred.

1. The administration of the funds.
2. The investigation of claims for payment from the funds.
3. The adjudication of claims for payment from the funds.
4. The recovery of money the board may be entitled to receive under the Act.
5. Communications and educational activities.

Claim adjudication

Expense related to claim adjudication depends on the number and complexity of the claims received by the board and the amount of approved claims. While claims have been infrequent, the board’s budget includes the assumption that claim adjudication may occur and to allow for the potential contingency of payments from the fund annually.

The board is using the assumption that the potential claim payments to be paid out annually and using $347,000 for budget purposes based on the 2021–22 actuarial review.

Governance, secretariat and financial support services

As part of the prescribed administrative expenses under the PFFNPA, the board is required to cover the costs of governance, secretariat and financial support services. The board entered into a contract with Agricorp for fund management, claim adjudication, governance and secretariat administration services which expires March 31, 2026. The ministry has a deliverable as part of the implementation of the new Act to work with the board and Agricorp in 2026 to update any agreements. It is targeted that a new agreement between Agricorp and the board will be in place by March 31, 2026.

Professional, technical or other assistance to the agency

An example of this type of expense would be the actuarial review conducted approximately every five years. An actuarial review is planned for the 2026–27 fiscal.

Board legal services and investigation

Since April 1, 2020 the board pays the costs for most legal services associated with the administration of the GFPP as well as investigative costs. Legal Services Branch also reviews any board agreements and provides other legal advice as requested. This expense has been paid by the board since 2020–21 fiscal year. The board budgets for legal and investigative services with the assumption that there are claims to adjudicate that would require legal and investigative services. The budget is set to account for this contingency.

General legal and investigative expenses that are invoiced to the board (i.e., review of agreements), will be allocated among each of the four funds based on the board’s expense allocation policy. Legal and investigative services relating to claim adjudication that are invoiced to the board, will be allocated to the fund based on the commodity at issue. In the case a claim involving multiple commodities, the allocation will be prorated. This is outlined in the board’s expense allocation policy which is reviewed by the board annually.

Proposed capital expenditures

The board does not have any capital expenditures planned for 2026–2029 fiscal years.

Table 1. Financial table — expenditure and revenue (as of February 28, 2026)

Initiatives involving third parties

Approximately every five years the board conducts an actuarial review, an initiative that involves engaging an independent 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 board is planning to engage an actuarial review vendor in 2026–27 fiscal year. This timing aligns with the board’s governance practice to conduct an actuarial review approximately every five years. The last actuarial review was conducted in 2021–22 fiscal.

There are no other initiatives involving third parties is planned for 2026 to 2029.

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 risk management plan

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

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 Act 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 PFFNPA and determines the payment, if any, to be made from the fund.
• The PFFNPA 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 OMAFA to administer the licensing, inspection and enforcement components of the GFPP including the determination of financial responsibility of licence applicants.

Tools used to communicate key messages

• Annually, inform stakeholders of the status and performance of the funds by providing them with a copy of the board’s audited financial statements and annual report when available.
• In the event of a claim, the board will advise each claimant and the dealer and/or elevator operator via letter on the outcome of their claim.
• Share the board’s established investment policy with stakeholders following the board’s annual review if updates have been made.
• Participate in minimum of one stakeholder meeting every two to three years, if needed. Provide updates to stakeholders on board member appointments when available.
• 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 OMAFA.

Actuarial review report

• The board will continue to keep open lines of communication with stakeholders as discussions occur related to a new actuarial review.

New legislation and new regulation

• In late December 2025, the ministry communicated the program changes to industry stakeholders using an information sheet. The program content on Agricorp’s website has also been updated and is current for GFPP producers and operators.
• Throughout 2026, the board will check-in with the ministry, stakeholders and with the director to gauge if further outreach is needed.

Inventory of artificial intelligence (AI) use cases

The board does not have any AI use cases.

Appendix 1. Current board Appointees (as of February 28, 2026)

Appendix 2. History of claims (as of February 28, 2026)

Appendix 3. Revenue and expenditure by fund for 2023–24 and 2024–25 fiscal

Summary of the 2023–24 and 2024–25 revenue and expenses by fund (based on the audited financial statements):

• Overall the total fund balance of the four funds is $20.2 M as of March 31, 2025, which is an increase from the previous year primarily due to the investment income received.
• There were no claim applications received and none to adjudicate. Claims paid was $0 over the last two fiscal years.
• The fund revenue from check-off fees increased slightly in 2024–25, from the previous year.

Appendix 4. Ministers letter of direction for 2026–27

The following pages include the Grain Financial Protection Board’s letter of direction from the Ontario Minister of Agriculture, Food and Agribusiness. The letter outlines the Ontario government’s priorities for the board for 2026-27 fiscal year.

Ministry of Agriculture, Food and Agribusiness
Office of the Minister
77 Grenville Street, 11th Floor
Toronto, Ontario M7A 1B3
Telephone: 416-326-3074

Ron Campbell
Chair, Grain Financial Protection Board
1 Stone Road West
Guelph, ON N1H 8M4

Dear Mr. Campbell,

I am pleased to share our government’s 2026–27 priorities for the Grain Financial Protection Board (GFPB).

Agencies are a part of government and are expected to act in the best interests of the people of Ontario. In a time of economic uncertainty, agencies play a critical role in supporting our commitment to Protect Ontario by improving service delivery, driving innovation, and ensuring responsible stewardship of public resources – all while adhering to government policies and directives.

In accordance with the Agencies and Appointments Directive, agencies are required to align their goals, objectives and strategic direction with our government’s priorities. As chair, you are responsible for ensuring that the GFPB’s business plan clearly demonstrates how the agency will fulfill these expectations. Progress and achievements must be reported through your annual report, and compliance with these requirements will be monitored and reported to Treasury Board/Management Board of Cabinet annually.

This letter sets out my expectations for 2026–27, with a focus on how the GFPB will contribute to protecting Ontario by delivering better services and driving innovation and value for money.

Protect Ontario

1. Expand domestic partnerships within Canada, to promote the development of supply chains and economic opportunities across Canada and support economic resilience, particularly in light of ongoing U.S. tariff threats and economic uncertainty.
2. Procure from Ontario and Canadian businesses whenever feasible.
3. Provide economic relief for Ontario families, consumers and businesses by freezing government fees and fares, unless approved by my office.

Deliver better services

4. Focus on a user-centered client/customer experience by simplifying interactions, improving satisfaction, and expanding and optimizing digital service offerings.
5. Identify opportunities to enhance efficiency, improve services, drive innovation, and achieve cost savings for the people of Ontario, including through the use of AI and other advanced technologies.
6. Eliminate unnecessary bureaucracy and red tape by applying lean methodologies or other modalities to achieve operational efficiency.

Drive innovation and value for money

7. Find innovative solutions to use public resources efficiently and to effectively deliver on the agency’s mandate while operating within agency’s financial allocation, supported by accurate financial reporting, effective internal controls, and proactive fraud management practices.
8. Manage agency workforce with careful responsibility to stabilize expenditures and preserve long-term financial viability by:
   • strictly adhering to the hiring control parameters, including ceasing hiring for non-business critical and non-public-facing positions, including the use of consultants
   • operating within a defined maximum workforce size (including consultants)
   • ensuring compliance with the Broader Public Sector Executive Compensation Act (BPSECA)
   • enhancing productivity and efficiency by using technology wherever possible
9. Create a span of control policy that recognizes different streams of work within the organization and sets minimum span of control benchmarks, and provide it to my office for approval by March 31st, 2026.
10. Provide to me and Deputy Minister John Kelly by October 1, 2025, the amended human resource policy, guideline or directive that adheres to the OPS in-office standard of four (4) days per week effective October 20, 2025, and five (5) days per week effective January 5, 2026, and work with your oversight ministry to address any office space constraints.

These are the government-wide commitments for board-governed provincial agencies. Please see the attached guide for further details of each priority and the accompanying outcomes and performance measures that can be utilised if measurements are not currently in place.

I am also sharing the following priorities specific to the GFPB:

1. Providing effective oversight of: (1) Agricorp's delivery of program licensing; and (2) Agricorp’s investment and management of the funds (i.e., Monies generated via the check-off fee) that the board is accountable for. This includes effective oversight of program expenses and activities to ensure efficiency, transparency, financial accountability, and future sustainability.
2. Continue to undertake necessary due diligence to ensure appropriate producer checkoff fees that support long-term sustainability of the funds.
3. Maintaining open communication, providing superior client service, and stakeholder relations with key stakeholder groups, including:
   1. measuring and reporting on the performance of the funds against quantifiable targets
   2. working cooperatively with stakeholder groups with a view to building awareness of rights and responsibilities under the program (including the benefits of selling to licensed buyers) and strengthening compliance
   3. having an established investment policy that is reviewed annually and is shared with stakeholders and the ministry
   4. ensuring stakeholders have clarity on administrative and operational expenses paid from the funds
   5. ensuring key stakeholder groups understand the rationale for any changes recommended to the producer checkoff fee
4. Continuing to investigate and adjudicate all claims in a fair, equitable and timely manner with a focus on reducing burden, simplifying interactions and improving the customer service experience. The board is expected to make decisions on claims based on prudent and consistent adherence to established operational procedures, as well as effective customer service.
5. Exploring opportunities for digitalization of services and information to enhance program delivery and compliance.
6. Continuing to engage with the ministry, as needed, on upcoming work to operationalize the Protecting Farmers from Non-Payment Act and implement any changes. Work with stakeholders to support communication, understanding and implementation of key changes.
7. Supporting government priorities to modernize program delivery and drive agrifood sector innovation and resilience by using these lenses to inform the board’s operational decisions and supporting ministry policy-development, as required, by leveraging the industry knowledge/expertise of its members.

At our next meeting, I would be pleased to discuss these priorities, and I look forward to hearing how they will be reflected in the agency’s upcoming business plan and in ongoing agency operations.

Thank you and your fellow board members for your continued commitment to the GFPB. Your work and ongoing support is invaluable to our government and the people of Ontario.

Should you have any questions, please feel free to contact my office or David Hagarty, Assistant Deputy Minister, Policy Division.

Sincerely,

Hon. Trevor Jones
Minister of Agriculture, Food and Agribusiness

Attachment: Government Priorities for Agency Sector Chart