The Canadian Grain Commission (CGC) has been cracking down on grain companies not paying farmers for their delivery.
Back on March 25, the CGC removed the grain dealer licence and a primary elevator licence for an elevator in Holland, Manitoba from Zeghers Seed Inc, also known as Zeghers Canada. A review of individual producer claims determined “there were 27 eligible claims for unpaid deliveries to Zeghers Seed Inc” according to a July 18th news release from the CGC. The Commission will issue compensation totalling over $1.2 million from the company’s security to affected producers, as per the Safeguards for Grain Farmers Program. Producers will get 100 per cent compensation for their eligible claims for unpaid deliveries.
“The Canadian Grain Commission is committed to ensuring producers are fairly compensated for their deliveries. Our Safeguards for Grain Farmers Program plays a key role in securing payments for producers, and we are pleased to be able to provide 100% coverage of eligible claims for unpaid deliveries to Zeghers Seed.” said David Hunt, Commissioner of the Canadian Grain Commission.
Last Tuesday, the CGC took away a grain dealer licence from LSM Grain Ltd, a grain company based in Saskatoon. They’re currently reaching out to farmers to let them know that if LSM owes them money, they may be eligible for compensation.
Affected farmers are asked to immediately contact the Canadian Grain Commission by emailing compliance-conformite@grainscanada.gc.ca or by calling 1-800-853-6705 or 204-984-0506.
The CGC says, “producers are eligible for compensation paid from the licensed company’s security for a maximum of 90 days from the date of their grain delivery. If they wait longer than 90 days to exchange their primary elevator receipt or grain receipt for a cash purchase ticket or cheque, they are not eligible for compensation. Once producers receive a cash purchase ticket or cheque, they are eligible for compensation paid from the licensed company’s security for 30 days from the date it was issued, or until 90 days from the date of grain delivery. The lesser of these two time periods applies.”
Chief Agricultural Editor of SaskAgToday.com Kevin Hursh believes there could be more companies that could have their licences revoked, so farmers should be vigilant.
This story has been updated to include more clear information in regard to eligibility requirements for compensation paid from a licensed company’s security. — R. Young