O. Reg. 85/26: GRAIN"

O. Reg. 85/26: GRAIN, PROTECTING FARMERS FROM NON-PAYMENT ACT (REGULATING AGRICULTURAL PRODUCT DEALERS AND STORAGE OPERATORS), 2023

ontario regulation 85/26

made under the

Protecting Farmers from Non-Payment Act (Regulating Agricultural Product Dealers and Storage Operators), 2023

Made: March 27, 2026
Filed: March 30, 2026
Published on e-Laws: March 31, 2026
Published in The Ontario Gazette: April 18, 2026

Amending O. Reg. 377/25

(GRAIN)

1. (1) The definition of “grain” in subsection 1 (1) of Ontario Regulation 377/25 is amended by striking out “soybeans” and substituting “rye, soybeans”.

(2) Subsection 1 (2) of the Regulation is amended by adding the following definition:

“Financial Security Analysis document” means the document entitled “Financial Security Analysis for the Grain Financial Protection Program”, dated March 24, 2026, published by AgriCorp and available on AgriCorp’s website; (“document Analyse de la sécurité financière”)

2. Section 11 of the Regulation is revoked and the following substituted:

Application for dealer’s licence or renewal

11. (1) A person may apply for a dealer’s licence or the renewal of a dealer’s licence by submitting a completed application in accordance with this section.

(2) The application shall be in a form provided by the Director and shall include,

(a) information about the applicant’s business structure and their business name, operating name and business number;

(b) if the applicant is a corporation, the names of its shareholders;

(d) if the applicant is a limited partnership, the names of the general partners;

(e) the applicant’s mailing address and contact information for any individuals with signing authority; and

(f) the applicant’s licence number, in the case of an application for renewal.

(3) The applicant shall provide the following supporting documents:

1. In the case of an application for renewal by a dealer who is also a producer, the total amount of each type of grain the applicant purchased from its own production.

2. A statement about any market speculation or hedging in which the applicant engages.

3. A statement about assets and liabilities that would significantly affect the applicant’s financial position.

4. A statement about the applicant’s purchasing and marketing activities over its previous fiscal year.

5. A list of, and details respecting, any unrelated businesses or persons on which the applicant may be economically dependent.

6. A statement of the projected volume of grain the applicant intends to purchase over the term of the licence.

7. A banker’s confirmation form respecting the applicant’s credit.

8. An up-to-date corporate profile report if,

i. in the case of an application for a dealer’s licence, the applicant is a corporation, or

ii. in the case of an applicant for renewal of a dealer’s licence, there have been changes to the applicant’s corporate profile.

9. If the applicant is a corporation, financial statements from the corporation’s previous fiscal year, accompanied by a compilation engagement report, a review engagement report or an audit opinion prepared by a public accountant licensed under the Public Accounting Act, 2004.

10. If the applicant is not a corporation, a statement of the applicant’s tangible net worth and the applicant’s most recent income tax return with the applicant’s social insurance number removed.

(4) Despite paragraphs 9 and 10 of subsection (3), an applicant is not required to submit the information mentioned in those provisions if the applicant agrees to provide security to the Director in the amount determined under section 12.2.

(5) The Director may request that an applicant provide information in addition to the documents required under subsection (3) if the additional information is reasonably required to allow the Director to conduct the financial security analysis required under section 12.

(6) The fee for an application under this section is $200.

(7) The deadline for applying for a renewal of a dealer’s licence is 30 days before the licence expires.

Unsuitability, disentitlement — dealer’s licence and renewal

11.1 (1) The following circumstances are prescribed for the purposes of clauses 56 (1) (e) and 57 (4) (e) of the Act:

1. The applicant previously held a dealer’s licence that was revoked.

2. The applicant or any officer, director or representative of the applicant or any other person having effective control of the applicant’s operations has been found guilty of an offence under the Act or the Grains Act.

(2) The following grounds are prescribed for the purposes of clauses 56 (1) (f) and 57 (4) (f) of the Act:

1. The applicant has filed a notice of intention to file or a proposal under the Bankruptcy and Insolvency Act (Canada) or has had all or part of their assets placed in the hands of a trustee for distribution under that Act.

2. A monitor has been appointed under the Companies’ Creditors Arrangement Act (Canada) in respect of the applicant.

3. A receiver or receiver-manager has been appointed in respect of some or all of the applicant’s assets.

4. The applicant has made an application under the Farm Debt Mediation Act (Canada).

5. The applicant fails to provide security as required under this Regulation.

Term, content of dealer’s licence

11.2 (1) A dealer’s licence expires at the end of the month that is six months after the last day of the dealer’s fiscal year in which the licence is issued or renewed.

(2) The licence must contain a licence number and its expiry date.

Conditions of dealer’s licence

11.3 Every dealer’s licence is subject to the following conditions:

1. The dealer shall notify the Director as soon as possible, in writing, of the following:

i. Any changes to the nature or form of ownership of, or changes to the control over, the dealer’s business.

ii. Any changes to the dealer’s banking arrangements.

iii. Any material changes to the dealer’s financial position.

2. The dealer shall display a copy of their licence at the premises where they conduct business and, if the dealer is also an elevator operator, at each elevator identified in the elevator operator’s licence.

3. Section 12 of the Regulation is revoked and the following substituted:

Grounds to be considered — financial security analysis

12. (1) Before issuing or renewing a dealer’s licence, the Director shall conduct an analysis of the applicant’s financial security by applying the scoring methods set out in the Financial Security Analysis document.

(2) Subsection (1) applies with respect to each applicant unless,

(a) the applicant is a new applicant who does not provide the supporting documents described in paragraph 9 or 10 of subsection 11 (3), as applicable; or

(b) the applicant agrees to provide security to the Director under subsection 11 (4).

Requirement to provide security

12.1 (1) The Director shall require the following applicants for a dealer’s licence to provide security:

1. An applicant who, as part of their application, did not submit the supporting documentation described in paragraph 9 or 10 of subsection 11 (3), as applicable.

2. An applicant who fails to provide additional information requested under subsection 11 (5).

3. An applicant who receives a score under the Financial Security Analysis document of less than 50 points.

(2) The Director may require the following applicants for a dealer’s licence to provide security if the Director believes on reasonable grounds that the applicant may be unable to meet its financial obligations during the term of the licence:

1. An applicant who receives a score under the Financial Security Analysis document equal to or greater than 50 points and less than 60 points.

2. An applicant for whom the Director has fewer than three years of the financial information set out in the supporting documents described in subsection 11 (3), as provided by the applicant in connection with the application or an application made in respect of the previous year.

(3) The Director shall not require security from an applicant who receives a score under the Financial Security Analysis document of more than 60 points.

Security — amount, payment

12.2 (1) The amount of security to be provided by a new applicant who does not provide the supporting documents described in paragraph 9 or 10 of subsection 11 (3), by an applicant who agrees to provide security or by an applicant from whom the Director requires security shall be determined in accordance with the Financial Security Analysis document based on the applicant’s past purchases or projected purchases of grain.

(2) The applicant shall provide the amount to the Director in the form of,

(a) an irrevocable letter of credit issued by,

(i) a bank listed in Schedule I or II of the Bank Act (Canada),

(ii) a credit union to which the Credit Unions and Caisses Populaires Act, 2020 applies, or

(iii) a trust corporation registered under the Loan and Trust Corporations Act; or

(b) a bond issued by an insurance company licensed under the Insurance Act.

(3) The security must be valid until at least the end of the third month after the expiry of the licence in respect of which the security is provided.

Small dealer exemption

12.3 (1) An applicant for renewal of a dealer’s licence who satisfies the conditions in subsection (2) is exempt from,

(a) the requirement to provide the supporting documents mentioned in paragraph 9 or 10 of subsection 11 (3), as applicable;

(b) the financial security analysis required under section 12; and

(2) The conditions referred to in subsection (1) are the following:

1. The applicant’s purchases of designated grain crop in each month of the term of their current licence do not exceed $50,000.

2. The applicant provides, as part of their renewal application, a signed declaration that their monthly purchases of designated grain crop will not exceed $50,000 in any month of the period covered by the licence.

(3) The exemption in subsection (1) does not apply if,

(a) the applicant has failed to make payment as required under the Act;

(b) the applicant was found guilty of a Type A offence during the term of their current dealer’s licence;

(c) a compliance order was issued to the applicant under subsection 67 (2) of the Act during the term of their current dealer’s licence with respect to a condition of their licence or a provision mentioned in any of paragraphs 1 to 7 of subsection 108 (1) of the Act;

(d) an administrative penalty was imposed on the licensed dealer under subsection 71 (3) of the Act during the term of their current dealer’s licence with respect to a provision mentioned in any of paragraphs 1 to 7 of subsection 108 (1) of the Act; or

(e) the applicant has been found guilty of an offence under the Grains Act.

(4) Despite clause (1) (a), the Director may request that an applicant submit the supporting documents described in paragraph 9 or 10 of subsection 11 (3), as applicable, if more than 5 years have passed since the applicant last provided those documents.

4. Sections 13 to 15 of the Regulation are revoked and the following substituted:

Application for elevator operator’s licence or renewal

13. (1) A person may apply for an elevator operator’s licence or the renewal of an elevator operator’s licence by submitting a completed application in accordance with this section.

(2) The application shall be in a form provided by the Director and shall include,

(a) information about the applicant’s business structure and their business name, operating name and business number;

(b) the applicant’s storage capacity;

(d) if the applicant is a partnership other than a limited partnership, the names of the partners;

(e) if the applicant is a limited partnership, the names of the general partners;

(f) the applicant’s mailing address and contact information for any individuals with signing authority; and

(g) the applicant’s licence number, in the case of an application for renewal.

(3) The applicant shall provide the following supporting documents:

1. A certificate of insurance coverage, including details about the applicant’s insurance policies such as scope of coverage and information about the broker and insurer.

2. An up-to-date corporate profile report if,

i. in the case of an application for an elevator operator’s licence, the applicant is a corporation, or

ii. in the case of an applicant for renewal of an elevator operator’s licence, there have been changes to the applicant’s corporate profile.

3. A list of individuals the applicant authorizes to sign storage summaries and agreements on the applicant’s behalf.

(4) The fee for an application under this section is,

(a) $150 if, at the time of making the application, the elevator operator has a storage capacity of 5,000 tonnes of grain or less;

(b) $300 if, at the time of making the application, the elevator operator has a storage capacity of greater than 5,000 tonnes of grain and less than or equal to 25,000 tonnes of grain; and

(c) $450 if, at the time of making the application, the elevator operator has a storage capacity of greater than 25,000 tonnes of grain.

(5) The deadline for applying for a renewal of an elevator operator’s licence is 30 days before the licence expires.

Unsuitability, disentitlement — elevator operator’s licence and renewal

14. (1) The following circumstances are prescribed for the purposes of clauses 56 (1) (e) and 57 (4) (e) of the Act:

1. The applicant previously held an elevator operator’s licence that was revoked.

(2) The following grounds are prescribed for the purpose of clauses 56 (1) (f) and 57 (4) (f) of the Act:

2. A monitor has been appointed under the Companies’ Creditors Arrangement Act (Canada) in respect of the applicant.

3. A receiver or receiver-manager has been appointed in respect of some or all of the applicant’s assets.

4. The applicant has made an application under the Farm Debt Mediation Act (Canada).

5. The applicant fails to provide security as required under this Regulation.

Term, content of elevator operator’s licence

15. (1) An elevator operator’s licence expires at the end of the month that is six months after the last day of the elevator operator’s fiscal year in which the licence is issued or renewed.

(2) The licence must contain a licence number and its expiry date.

(3) The licence must identify the storage facilities at which the elevator operator is authorized to store grain.

Conditions of elevator operator’s licence

15.1 Every elevator operator’s licence is subject to the following conditions:

1. The elevator operator shall notify the Director as soon as possible, in writing, of the following:

i. Any changes to the nature or form of ownership of, or changes to the control over, the elevator operator’s business.

ii. Any changes to the elevator operator’s banking arrangements.

iii. Any changes to the individuals the elevator operator authorizes to sign storage summaries and agreements on the elevator operator’s behalf.

2. The elevator operator shall display a copy of their licence at each elevator identified in their licence.

3. The elevator operator shall store grain only in the storage facilities identified in their licence.

4. The elevator operator shall direct their insurer to notify the Director, immediately and in writing, of any lapse, termination or other change to the applicant’s contract of insurance required under the Act.

5. Subsection 16 (3) of the Regulation is amended by adding the following paragraph:

3.1 If the dealer satisfies the conditions in subsection 12.3 (2), a notation indicating that the dealer is a small dealer.

6. The Regulation is amended by adding the following section:

Compliance orders — content

54.1 In addition to the information set out in subsection 67 (3) of the Act, a compliance order must include the following information:

1. A statement that an appeal to the Tribunal does not act as a stay of the order.

2. A statement that failure to comply with the requirements of the compliance order by the date indicated in the order constitutes a Type A offence and could lead to further compliance or enforcement actions.

3. A statement that an order made in English can be translated into French on request and an order made in French can be translated into English on request.

Commencement

7. This Regulation comes into force on the later of April 1, 2026 and the day this Regulation is filed.

Made by:
Pris par :

Le ministre de l'Agriculture, de l'Alimentation et de l'Agroentreprise,

Trevor Jones

Minister of Agriculture, Food and Agribusiness

Date made: March 27, 2026
Pris le : 27 mars 2026