The CGC revoked the company’s license in July 2024
Some farmers who conducted business with LSM Grain Ltd. will be fully compensated for unpaid deliveries.
The Canadian Grain Commission (CGC) announced on Nov. 14 that after reviewing individual claims, nine were eligible, totalling more than $395,000 and will receive 100 per cent of payment from the company’s $2 million security.
The payments are for the 2024-2025 crop year.
“We are pleased to provide 100% compensation to producers with eligible claims. If producers are having difficulties getting paid, we encourage them to contact us immediately and we will do everything we can to help them through our Safeguards for Grain Farmers Program,” David Hunt, chief commissioner of the CGC, said in a statement.
Other farmers, however, won’t be compensated.
The CGC received 17 claims outside of the 90-day eligibility period, the commission says.
The CGC revoked LSM Grain Ltd.’s grain dealer license in July.
Licensed grain companies are required to provide payment security to the CGC to cover money owed to producers for grain deliveries.
That security can come in the form of a bond, an irrevocable standby letter of credit or guarantee, or a payables insurance policy.
Sections 95, 116 and 118 of the Canada Grain Act allow the CGC to revoke a license if a company can’t maintain that security.
Since 1981, the CGC has provided payments to farmers on 33 occasions.
In 1981-1982, 87 farmers split $1.5 million from Econ Consulting Ltd., and 77 farmers were compensated more than $1.5 million from business dealings with Memco Limited.
The other most recent compensation came for farmers involved with Zeghers Canada.
“Following a review of individual producer claims, the Canadian Grain Commission determined that there were 27 eligible claims for unpaid deliveries to Zeghers Seed Inc.,” the commission said in a July 18 statement. “The Canadian Grain Commission will issue compensation totalling over $1.2 million from the company’s security to these producers. Producers will receive 100% compensation for their eligible claims for unpaid deliveries.”