MarketPower Assurance (MPA)

MPA is a new and innovative farmer risk mitigation program, sponsored by FNA-Strategic Agriculture Institute (“FNA STAG”), the non- profit arm of the 10,000 Member strong Farmers of North America (“FNA”).

As with all programs sponsored by FNA, the ultimate goal is that of maximizing farm profitability by combining the purchasing strength of its membership to achieve buying power a farmer could not realize alone.

MPA 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 MPA, 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

In order to assist farmers and aggregate their business, FNA STAG has created the MPA Farmers Protection Insurance Trust (the “Trust”), an irrevocable insurance trust, to hold the insurance policy. 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 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 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, all farmers in Canada are eligible to participate in this Program, even if a farmer is not a dues paying Member of FNA.

However, only FNA Members earn the 30% discount available through membership on the Trust standard pricing model. FNA membership has its rewards, and this is one of them. Even modest undiscounted sales under the Program will offset the cost of full FNA membership, with all its other discounts and rewards, so why not inquire about FNA membership now?

As Well As For Select Commodity Brokers, Dealers and Processors

We understand that in the modern age 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).

FNA STAG has extended the MPA 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 and the United States.

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. As farmers have been considered “too small” or “too hard to reach” to make a credit insurance program available and profitable, the farmer segment of the market has largely been unserved and ignored.

With MPA, grain companies now have two reasons to participate in this 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 is almost automatic.

The grain company and farmer 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, the grain company or split evenly.

On a Single Invoice basis

As suggested earlier, the key component of the MPA 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.

That is Pay as you Go

Another key innovation of the MPA 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 MPA, you never commit yourself to buying coverage you don’t need. Farmers 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 MPA Program, have been designed to provide innovative and forward thinking coverage to the farm community. While we think we have designed the 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? Less than ½ of 1% if you are an FNA Member!

The standard pricing model for credit insurance coverage in the MPA Program is 65 basis points (.0065), 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 an FNA Member, you are entitled to a full 30% discount off the standard pricing model, resulting in an effective rate of just 45 basis points, or .0045.


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

Cost to non FNA Member: .0065 x $100,000 = $650.00

Cost to FNA Member: .0045 x $100,000 = $450.00

It only takes a few transactions to cover the cost of a full FNA Membership.

Why not apply now?