Are third-party retail sales included in my quota?
Yes. You must fill out a yearly declaration form entitled “Register of third-party retail sales,” which is sent to producers every year along with their registration forms.
I produced 130% of my quota in 2016. Do I need to pay a penalty?
Nope! Maple syrup quotas don’t restrict production. You don’t have to pay a penalty if you go over quota. The quota mainly affects the payment methods for maple syrup. The Federation’s sales agency makes in-quota maple syrup payments first. After in-quota maple syrup has been paid for in full, over-quota maple syrup payments start. As of April 22, 2016, the Global Strategic Maple Syrup Reserve had 58 million pounds of maple syrup, 18 million of which was over-quota.
If I don't deliver my over-quota maple syrup to an authorized buyer and it is not classified by ACER Division Inspection Inc., what happens?
If a producer sells maple syrup outside the sales agency, “liquidated damages” of $0.80/lb. may apply and the maple syrup buyer will also be charged $0.80/lb. So think carefully about it! Make sure you deliver to an authorized buyer, and ask that your maple syrup be classified by ACER Division Inspection Inc.!
Does the quota policy cover retail sales through grocery stores, convenience stores, restaurants, and other third parties?
The quota policy does cover retail sales through grocery stores, convenience stores, restaurants, and other third parties, even if the syrup is sold in small containers (i.e., 5 liters or 5 kg and under). These types of sales are only permitted if you posses a quota. In addition, you must declare these amounts to FPAQ when you update your registration form in the fall of every year. Furthermore, you must keep your proofs of purchase for small containers and your receipts for direct sales to maintain an up-to-date record of your overall production history.
When and how can I get a quota?
In March 2015, the Federation tabled a draft amendment to the quota policy to issue new quotas for the next generation of producers, as well as for startups and expansion, as of the spring 2016 harvest. If Quebec’s agricultural marketing board (RMAAQ) approves this amendment, all producers and aspiring producers will be informed of how they can apply for the various programs through our usual channels of communication, including the fpaq.ca website and our Info-Sirop newsletter.
What do I do to use my above quota inventory?
When harvests are under quota, producers can ask to have part of their above quota inventory transferred to their quota inventory. However, they must indicate their desire to do so on the annual registration form. This mechanism allows producers to transfer up to 20% of their quota from their above quota inventory to their quota inventory.
How much is a maple syrup production quota worth?
A maple syrup production quota cannot be sold separately from the land (i.e., the sugar bush) it is associated with. Obviously, a sugar bush with a quota will normally be worth more than a sugar bush in the same area without a quota. However, the value of a quota can vary according to a number of factors like region, general condition, and productivity.
What are the main advantages of producing and delivering over-quota maple syrup to your authorized buyer?
- Your quota will increase in the future due to the Federation of Quebec Maple Syrup Producers’ annual growth component (up to 25% more each year).
- You can stabilize your income in years with small harvests by transferring the over-quota maple syrup from previous years to your quota for the current year (up to 20% per year).
- You increase your production quota, which helps with your crop insurance from Financière agricole du Québec.
- A sugar bush with more quota and better insurance coverage is a sugar bush with a higher market value! That benefits you.
When will I get paid for my over-quota?
There are two ways to get paid for your over-quota maple syrup:
- The sales agency will pay you for your over-quota maple syrup on March 15 of the year after it is sold.
- If you have not reached your quota for a specific production year, you can also transfer your over-quota to the current year. Up to 20% of your in-quota maple syrup for the year can be filled by over-quota maple syrup from past years. This is very practical for years with small harvests because you can stabilize your income.