Condominium storage policy

Physical structure of condominium storage

Physical primary elevator condo storage means a designated grain storage space or bin that is part of a grain elevator. This space is owned by or leased to a third party by the elevator, and meets one or more of the following:

• sits inside the elevator’s structure
• is attached to the elevator by equipment that carries grain
• may be on the premises of the licensed facility

Grain received by a licensed primary elevator under a condo storage agreement with a producer must be segregated and stored in a separate bin from grain of similar quality and kind. Grain must not be co-mingled with any other producer deliveries.

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 leased storage facilities.

At any point, if the grain is transferred from condo storage into the general storage of an elevator, the requirements of the Canada Grain Act section 61(1) would apply. 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

For grain to be recognized as being held in condo storage, the Canadian Grain Commission requires evidence of a signed agreement between the licensed primary elevator and the producer. This agreement must clearly describe the terms of the arrangement and must identify the designated storage bin to ensure the grain remains segregated and not co-mingled with grain of similar kind and quality.

Upon delivery of grain into condo storage, producers should 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. Prescribed Canadian Grain Commission primary elevator receipts must not be issued when accepting grain into condo storage.

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

Application for and renewal of primary elevator licence

Applicants for primary elevator licences are required to report total licensed capacity, including all primary, annex and condo storage capacities. For licensing applications or renewals, 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 should not include grain in condo storage, or 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.

For licensee’s using stocks in store to offset security requirements under the Canadian Grain Commission’s Stocks in Store Policy for Licensed Primary Elevators:

• condo storage grain must be excluded when calculating the stocks in store offset on the monthly liability report
• the Safeguards for Grain Farmers Program may verify the treatment of condo storage and the associated stocks in store offset calculation during routine risk-based audit and monitoring activities to ensure that condo storage has been properly excluded

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. 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 each week.

For more information about condo storage, contact our Compliance team.