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FAQ | Payment

How are maple producers paid?

Quebec maple syrup producers are paid for regular maple syrup in one of two ways:

  1. Without APP (outside the Advance Payments Program)
  2. With APP (through the Advance Payments Program)

Without APP

  • First payment: July 15

This payment goes only to producers whose maple syrup is graded before July 15. The amount paid is prorated to the sales made and paid for as at June 30.

Producers who haven’t had any barrels of maple syrup graded by July 15 will receive payments on the same prorated basis until the end of the classification period.

  • 2nd payment: November 15

This payment is prorated to sales made and paid for as at October 31.

  • Final payment for the current and previous years: March 15

The amount is prorated to sales made and paid for as at February 27 when the marketing year ends. Maple syrup producers are also paid for sales from previous years that took place during the current marketing year.

 

You can sign up for APP at any time by

  • filling out the forms on Producer WEB in the forms section

          or

  • getting in touch with Producer Services at 1-855-679-7021, extension 8723, or at producteurs@upa.qc.ca.

 

With APP (new estimated advance)

PPAQ will soon be able to pay producers before their syrup is graded. The amount paid will be based on the estimated value of barrels produced for bulk delivery on their declaration. The program is backed by Agriculture and Agri-food Canada (AAC) and will be run by PPAQ.

Here’s how it works:

  • When your harvest season ends, connect to the WEB producer platform.
  • Complete the Declaration of Production, indicating the number of barrels produced that will be delivered to the sales agency by an authorized buyer or to the Laurierville plant–warehouse. Include all barrels delivered and to be delivered.
  • The number of barrels declared will be multiplied by the estimated weight of the barrels when full. The total estimated weight can’t be more than your quota; that’s the “bulk use” volume marked on your payment stub (which is the equivalent of your 2020 quota minus your third-party retail sales). Doing it that way means that advances are paid only on in-quota production.
  • The resulting weight is then multiplied by an average price for the past five years that’s been approved by AAC.
  • The advance is paid at a rate of 50%. At this stage, your $0.14/lb fee isn’t deducted. All that’s deducted is your tap advance.
  • You will need to hold enough insurance to cover the value of all the maple syrup you’ve stored at your own operation. PPAQ may require you to show proof of insurance.
  • When barrels are graded, you’ll be issued a grading advance at a rate ranging from 65% to 75% depending on the harvest level and the funds PPAQ has available. Your $0.14/lb contribution will be deducted at this stage as will the estimated advance received and any other amounts owing.
  • You’ll receive an additional payment in December if sales revenue allows.
  • Final payment is on March 15 and is based on sales made and collected as at February 27 (the end of the marketing year).

Will payment be delayed if my maple syrup takes longer to grade?

Because we anticipate delays in maple syrup grading, non-APP payment (outside the Advance Payments Program) could be directly affected by delays, which would penalize producers in that category.


Will we be paid on time once our maple syrup is graded?

PPAQ will get producers the support they need and has no intention of being late with payments. As always, producers will be paid within ten business days of grading. PPAQ staff are still on the job, either at the office or remotely, and payments are still being processed as usual.


Why don’t you pay me for all my maple syrup if I’ve already delivered it to my buyer?

PPAQ doesn’t have the money to pay maple syrup producers in full because the current harvest hasn’t all been sold yet. Buyers can accept delivery of all the maple syrup barrels you have without having to pay for them right away, as per the terms of sale in the maple syrup marketing agreement signed by PPAQ and CIE (Conseil de l’industrie de l’érable). Producers are paid for the maple syrup sold when PPAQ receives payment for it.

Terms of payment for authorized buyers

Authorized buyers can pay for the maple syrup they get from producers in instalments. During the bulk maple syrup delivery period, from February 28 to September 30, authorized buyers pay PPAQ monthly instalments of whichever of the following amounts is higher:

  • 100% of the value of the maple syrup they have used

          or

  • 30% of the value of the maple syrup graded (or received) in the preceding month

Authorized buyers may also take maple syrup on consignment, i.e., without paying for it until it’s sold. Maple syrup still on consignment as at September 30 is then paid for in five instalments, on November 1, December 1, January 1, February 1, and the balance on February 27.

That’s why maple syrup producers are paid in four instalments spread over the year. Essentially, PPAQ needs to get the money from the buyers before it can pass it on to the producers.

It’s all explained in greater detail (in French) on page 6 of the January 2018 issue of Info-Sirop (vol. 5, no. 1).


Does getting the estimated advance mean I can’t produce over quota?

You can still produce over quota and get the estimated advance. You just can’t get an estimated advance on the over-quota syrup you produce. The amount of your advance is estimated based on the “bulk use” volume indicated on your payment stub. That volume is equal to your 2020 quota minus your third-party retail sales.


Why are we only paid 65% under the Advance Payments Program and not 75%?

The uncertainty in the markets caused by COVID-19 makes it difficult for PPAQ to assess the following:

  • Harvest levels
  • Sales
  • How harvest levels and sales will affect PPAQ and authorized buyer liquidity

To be on the safe side, PPAQ’s board of directors settled on a grading rate of 65% for the time being. That rate will be reviewed each month by the board to see if we can raise it to 70% or 75% as in previous years. The rate will in all likelihood be raised in several increments over the coming months.


How can I get paid faster?

Maple syrup producers are paid in two broad categories—those who take part in the advanced payment program (APP), and those who don’t. Producers who sign up for the APP receive payment for their maple syrup faster over the course of the year. They are also eligible to receive a $2.35 tapping advance in February, before the harvest begins. For more information, please see the payment page in Producers section.


If I sell my sugar bush, can I get paid for my entire syrup inventory at once?

If you sell your sugar bush, you will not be paid for your entire maple syrup inventory at once because producers are paid as syrup stocks are sold, starting with quotas, then proceeding to above quota sales. However, when you sell your sugar bush, you can also sell your inventory to the buyer.


When will the tapping advance form be available and mailed?

The tapping advance form is sent to all eligible producers (i.e., those participating in the advanced payment program) around January 20 every year.


When will I get my tapping advance?

The first payments for tapping advances are made in early February. By the end of February, 90% of tapping advances have been paid out.


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