The SecureSellAg Program

SecureSellAg is a new and innovative farmer risk mitigation program offered by The Farmers Protection Insurance Trust.

The strategy behind this unique Program is to combine the purchasing strength of all Canadian Producers, Food Processors and Farm Input Organizations to achieve buying power a farmer could not realize alone.

SecureSellAg provides individualized credit insurance coverage on your sales to buyers in Canada, the United States and around the world, the solvency and credit worthiness of which you may not be familiar. You need no longer take the risk of not getting paid when a premium price is offered for your farm commodities. With SecureSellAg, you are assured of getting at least 90% of your invoice value if your buyer defaults and cannot, or will not, pay you.

You simply file your claim, get paid, and let the insurance company collect. It’s just that simple!

Using an Irrevocable Trust

To assist farmers and other agriculture related small businesses aggregate their insurable sales transaction, The Farmers Protection Insurance Trust (the “Trust”), an irrevocable insurance trust, was created to hold the insurance policy on behalf of all parties who buy insurance under the SecureSellAg Program. The Trust is organized and operated solely and exclusively for the benefit of the farmers and other beneficiaries who participate in the program. The trust engages in no other commercial activity, and has only one goal: support the farm community through insuring farm and agriculture related business and transactions.

Credit insurance, sometimes called receivables insurance or trade credit insurance, is a form of commercial insurance that protects the accounts receivable (i.e., your sales invoices) of the farmer when farm commodities are sold on credit terms. You sell to a customer and the customer agrees to pay later, say in 30 days. Your risk as the farmer/seller or other covered seller is that your customer will not, or cannot, pay you when the invoice comes due. If this happens, the Trust will file a claim with the insurer, collect the proceeds and pay you a minimum of 90% of the invoice value.

For the Benefit of All Farmers

Subject to qualification and acceptance by the Trust, all Farmers and Producers in Canada are eligible to participate in this Program. The Program covers all agricultural commodities, farm inputs and food processing.

Members of participating commodity organizations and other stakeholders may receive a discount available through membership in that organization from the standard pricing of 75 basis points (.0075 or .75%).

As Well As For Select Commodity Brokers, Dealers and Processors

We understand that today farmers must cast their sales net far and wide to achieve the best sales results for their farm operation. This often means they use intermediaries such as commodity brokers (who arrange sales, but do not take title), commodity dealers (who buy from farmers and resell for their own account) and processors (who sometimes take title and sometimes do not).

The Trust has extended the SecureSellAg Program to include these sales groups so as to best serve the farm community in all the different ways farmers actually transact business in Canada.

No farmer benefits from the bankruptcy, insolvency or slow pay of its customer when they are not paid either.

And Participating Grain Companies

Historically, Grain Companies have been using credit insurance for decades, particularly when export sales are involved. Some smaller Grain Companies, like most Farmers and Producers, have also been considered “too small” or “too hard to reach” to make a credit insurance available and profitable. As a result, these Grain Companies along with the Farmer and Producer segments of the market have largely been unserved and ignored.

With the SecureSellAg Program, smaller Grain Companies now have two reasons to participate in the SecureSellAg Program and support the farm community. First, Grain Companies can now insure their sales on a case by case basis avoiding the cost of insuring transactions that are not likely to result in a credit loss. Second, the Grain Companies can themselves become a prequalified buyer for farmer sales to them, making the sales process easy and streamlined. As a prequalified buyer, Grain Company sales coverage for the Farmer/Producer is almost automatic.

The Grain Company and Farmer/Producer can also decide who pays for the insurance coverage, and build that cost structure into the transaction. The cost can be borne by the Farmer/Producer, the Grain Company or split between them.

Farm Inputs

We understand that very often there is a need for insurance coverage extending top other small businesses in the vertical chain of Canadian agriculture. There are numerous small businesses in Canada that sell to Farmer/Producers who also need to mitigate the risk of non-payment and slow payment, or who need to use the insurance as security for additional working capital lending.

As a result, the Trust offers the same low cost access to the SecureSellAg Program for sellers of farm inputs (seed, feed, fertiliser, fuel, etc.) that is available to Farmer/Producers and other stakeholders.

Food Processing

As with Grain companies described above, Food Processors are also included in the vertical chain of agriculture whose transactions can be covered under the SecureSellAg Program. And, as with Grain Companies there is a dual benefit.

First, Food Processors can now insure their sales on a case by case basis avoiding the cost of insuring transactions that are not likely to result in a credit loss. Second, the Food Processors can themselves become a prequalified buyer for farmer sales to them, making the sales process easy and streamlined. As a prequalified buyer, Food Processor sales coverage for the Farmer/Producer is almost automatic.

On a Single Invoice basis

As suggested earlier, the key component of the SecureSellAg Program is the ability of the farmer to insure a single transaction on an invoice by invoice, case by case basis. Pay only for what you need, when you need it. Period.

Historically, and prior to this Program, if a farmer wanted to insure a single transaction, it could not. A farmer would have to insure its complete “whole turnover”; that is the entirety of its sales to all its customers just to insure one single transaction. It’s no wonder that farmers rarely chose to obtain insurance, even if the insurers sought farm business, which they rarely did.

Of course, if the insured Farmer/Producer or other covered stakeholder wishes to insure multiple transactions, multiple buyers of otherwise commit to a volume, the average cost can be lower.

That is Pay as you Go

Another key innovation of the SecureSellAg Program is the “pay as you go” feature: you pay only for the coverage you need, when you need it. No long-term commitment, no excess coverage, and no wasted premium dollars. All at an amazing cost that cannot be duplicated anywhere else.

With no Long Term Commitment

With the SecureSellAg Program, you never commit yourself to buying coverage you don’t need. Farmer/Producers and other covered stakeholders pay only for coverage they specifically undertake to use, and no more. Use the Program once, then never again. Or use the Program every month, all year long.

And a Flexible Program

Both the credit insurance policy and the Trust, as well as the entire the SecureSellAg Program, have been designed to provide innovative and forward thinking coverage to the farm community. While we believe we have designed the SecureSellAg Program to cover most sales situations, we know how creative the farm community can be. If you have a new idea that may require coverage, tell us about it. We are more than happy to see how our Program can promote your sales!

At a terrific cost

And the cost? It will never exceed ¾ 1%, or 75 basis points for regular transactions!

The standard pricing model for credit insurance coverage in the SecureSellAg Program is 75 basis points (.0075), which alone is a bargain for a case by case, no commitment Program. Use it once, and never again.

But we do not stop there. If you are a member of a participating agricultural organization, you may entitled to a discount off the standard pricing model, resulting in a far lower effective rate.


A farmer sells $100,000 of Canola to a processor in North Dakota on 30 day terms.

Cost to anyone taking advantage of the Program: .0075 x $100,000 = $750.00

Cost to a member of a participating organization with an additional 20% discount: .8 x .0075 x $100,000 = $600.00

Either way, the coverage is very affordable.