La Financière agricole du Québec

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Support for Grain Corn Producers to Mitigate the Impact of 2019 Propane Price Increases in Quebec

The Quebec government is announcing that an additional $5.2 million will be paid as compensation to grain corn producers who faced a major price increase during last November’s propane crisis. This exceptional support measure, provided by La Financière agricole du Québec (FADQ), is intended to mitigate the negative impact of the propane shortage and price increase during the fall of 2019.

It consists of a maximum flat-rate amount of $23.50 per hectare of grain corn harvested as of November 19, 2019. Grain corn that has been or was to be dried with propane in 2019 is eligible. The maximum amount of assistance per producer is $50,000. The measure is available to businesses that use propane to dry grain corn and whose acreage was harvested after the CN strike began.

This amount is in addition to the nearly $60 million paid out in crop insurance indemnities for the year 2019 to date. FADQ’s flexibility and adaptability in response to this situation contribute to making these the largest compensation amounts paid by this program since the year 2000.

Procedure for Submitting your Application for Financial Assistance

Visit the To Apply - Measure to support grain corn producers in mitigating the impact of the 2019 rise in propane prices in Québec page for details on how to apply.

Highlights of the 2019 Grain Corn Situation

  • 2019 was a difficult year for grain producers.
  • This was compounded by the CN employee strike from Nov. 19 to Nov. 26, coinciding with the grain corn harvest, which caused a disruption in the supply of Ontario propane transported by train.
  • Under these circumstances, propane supplies were tight and there were significant price increases.