The revocation took effect on July 23
By Diego Flammini
Staff Writer
Farms.com
The Canadian Grain Commission (CGC) has revoked a Saskatchewan business’s grain dealer license.
The CGC took away LSM Grain Ltd.’s license as of July 23, the commission’s website says.
The Saskatoon-based company “is an organic and conventional trading company dealing in the food industry, the pet food industry and the animal feed industry,” its website states.
The CGC is looking into the company's financial situation.
"The CGC’s Audit Unit is conducting an onsite final audit of LSM Grain’s outstanding financial liabilities to producers," Christianne Hacault, a CGC spokeswoman, told Farms.com in an email. "The CGC holds a $2 million bond to compensate producers who have delivered grain to LSM Grain and who make eligible claims for payment."
Prairie grain farmers may be owed money by LSM Grain for unpaid deliveries.
Producers may also be eligible for payment security under the CGC’s Safeguards for Grain Farmers Program and should consider contacting the commission.
Farmers who do business with LSM Grain after July 23, however, will not be protected.
Under this program, 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.
In total, three companies are listed on the CGC’s website as having licenses revoked.
The others are Global Food and Ingredients, which occurred in May, and Zeghers Canada, which had its license taken away in March.
The CGC recently posted an update related to compensation 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.”