Price Pooling Program

Volatile commodity prices can make it difficult for agricultural producers and the organizations that market their products to plan cash flow with confidence. For marketing agencies and cooperatives operating in Canada’s agriculture and agri-food sector, the Price Pooling Program offers a way to manage that risk while supporting more stable returns for producers. Delivered by Agriculture and Agri-Food Canada, the program provides a federal price guarantee that helps protect against unexpected drops in market prices as products are sold over time.

Rather than providing direct payments to individual farms, the program works through eligible marketing agencies that pool and market agricultural products on behalf of their members. With the price guarantee in place, these organizations can make initial payments when products are delivered, improving short-term cash flow for producers while sales are spread across an extended marketing season. The guarantee can also be used as security when arranging financing, making it easier to cover storage, processing, transportation, and selling costs as products move to market. By pooling returns, agencies can help ensure producers receive comparable outcomes for products of similar grade and quality, while benefiting from economies of scale.

Applications are currently being accepted on an ongoing basis, and funding support varies depending on the products and marketing approach involved. For marketing agencies exploring ways to strengthen producer income and reduce exposure to price swings, a closer look at the full program details can help determine whether this price protection tool fits their operations.