A revised agreement for soybean marketing in Ontario will see soybean drying charges negotiated between dealers and farmers, rather than tied to the crop's price, starting next week.
Grain Farmers on Ontario announced Friday it had negotiated with the Ontario Agri Business Association and soybean processors on new terms for their Agreement for Marketing the Ontario Soybean Crop under the Farm Products Marketing Act.
Soybean drying charges in Ontario are currently tied to the price paid for the crop, as per the most recent soybean marketing agreement reached in 2005.
In the new agreement, however, effective Sept. 1, cleaning and handling charges, as well as soybean drying charges and moisture discounts, will be agreed upon by the dealer and the producer through "competitive market forces" as seen in corn and wheat marketing.
Given farmers' ability to review posted rates offered by different dealers and processors -- and now, the ability to negotiate soybean drying charges -- such terms and conditions "should be confirmed prior to producer delivery," the agreement states.
The revised agreement, reached last week, will be in effect until Aug. 31, 2016.
"This change is a direct response to concerns raised by our farmer-members about the high costs associated with soybean drying," GFO chairman Henry Van Ankum said in a release. "It better reflects the competitive environment that exists within the Ontario grain industry."
The organization has the power to negotiate terms and conditions of sale for corn or soybeans produced in Ontario, though it doesn't physically buy or sell the crop. -- AGCanada.com Network