Condominium storage policy

Effective August 1, 2002

Updated August 1, 2018

Definition

Condominium (condo) storage refers to space that a producer may own or lease within a licensed primary elevator.

Using condo storage enables producers to position their grain closer to the market and allows them to initiate a sale at any time from anywhere around the world. Producers are also able to avoid spring road bans and the difficulty of moving grain by truck in the winter from on farm storage bins to a primary elevator.

Background

The Canadian Grain Commission first developed guidelines for condo storage in 1991. The following provisions supersede the former 1991 guidelines. Included are the requirements related to the physical structure of condo storage, security provisions, documentation, and reporting requirements.

Requirements of the program

Physical structure of condominium storage

Physical primary elevator condo storage is defined as a separate facility attached by conveyance to the principal and annex houses, or part of the actual principal and annex.

Security provisions

Producers are individually responsible for insuring any grain stored in condo facilities, because the Canadian Grain Commission security provisions do not cover grain stored in space allocated to condo storage by licensed primary elevators.

However, the 90/30 day security provisions, as prescribed by the Canada Grain Act, are applicable once the grain is transferred from condo storage into the general storage of an elevator. Upon the transfer of the grain, elevator operators must issue a primary elevator receipt or cash purchase ticket to the producer of the grain. Security protects grain producers when the elevator fails to pay producers for their grain or return it to them. Time limits exist in which grain producers can make a claim to the Canadian Grain Commission.

Documentation, timing of, and type of receipt issued to producers

Upon delivery of grain into condo storage, producers are advised to obtain an acknowledgment of receipt from the elevator operator identifying the delivery as being destined for condo storage. This may be a receipt or condo storage ticket that includes the grain, grade name, weight and dockage of the grain being delivered. Authorized Canadian Grain Commission primary elevator receipts must not be issued when accepting grain into condo storage.

It is also advised that each document contain a disclaimer stating that producers are responsible for obtaining theft and fire insurance on any grain being delivered into condo storage.

Upon transfer of the grain into the general storage of a primary elevator, a Canadian Grain Commission authorized primary elevator receipt, or cash purchase ticket, must be issued. A Canadian Grain Commission-authorized receipt is needed to verify any claims a producer may need to make in the event an elevator refuses to pay or goes bankrupt.

Licensing reporting requirements

Application for primary elevator licence

Applicants for primary elevator licences are required to report total licensed capacity including all primary, annex, condo and condo storage capacities. It is not necessary to identify or differentiate to the Canadian Grain Commission the portion of the facility capacity that is intended for use as condominium storage.

Monthly Report of Licensee's Liabilities to Producers

Primary elevator licensees are not required to record the number of tonnes of grain in condo storage, and the corresponding dollar value, as a separate figure on their monthly Licensee's Report of Liabilities to Producers. The condo data is not to be included as part of the overall figure.

Statistics reporting requirements

Primary elevator licensees are required to submit data on the tonnes of grain in condo storage as a separate figure in their weekly grain handling report that is submitted to the Canadian Grain Commission Statistics Unit. In order to facilitate industry operations, this data will provide a summary of the handling system by relaying exactly how much grain is available and stored within both general elevator space and condo space in a given week.

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