New Agreement Reached for Soybean Drying Costs

Grain Farmers of Ontario, in collaboration with the Ontario Agri Business Association and soybean processors, has announced changes being made to the way soybean drying charges will be calculated under the Agreement for Marketing the Ontario Soybean Crop made under the Farm Products Marketing Act (O. Reg 485/09). According to the new terms, effective September 1, 2013, soybean drying charges will no longer be tied to the price of soybeans as outlined in the previous agreement in effect since 2005.

The new agreement will state:

Cleaning and handling charges, as well as soybean drying charges/moisture discounts, will be agreed upon by the dealer and the producer through competitive market forces, similar to the corn and wheat markets.

“This change is a direct response to concerns raised by our farmer-members about the high costs associated with soybean drying,” says Henry Van Ankum, chair of Grain Farmers of Ontario, in a press release. “It better reflects the competitive environment that exists within the Ontario grain industry.”

With this new ability to review the posted rates offered by different dealers and processors and the ability to negotiate their soybean drying charges, producers should confirm all terms and conditions before making their deliveries.

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