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Farmers compensated for unpaid grain deliveries

Farmers compensated for unpaid grain deliveries

The Canadian Grain Commission processed 53 eligible claims totaling $3.7 million

By Jackie Clark
Staff Writer
Farms.com

Producers have been compensated for unpaid deliveries to grain companies in the fall of 2020.

“The Canadian Grain Commission (CGC) suspended the licenses of Globeways Canada Inc., Global Grain Canada Ltd., and Canpulse Foods Ltd. because they no longer had security in place,” Rémi Gosselin, spokesperson for the CGC, told Farms.com. “This decision was made because the companies’ security provider notified the CGC that their coverage was terminated effective October 30, 2020.”

The three companies “were placed into receivership on Nov. 19 and producers owed money for deliveries were able to make claims through the Canadian Grain Commission’s Safeguards for Grain Farmers Program,” according to a March 2 release from the CGC.

$3.7 million was paid out to farmers in 53 eligible claims.

“The companies went into receivership on Nov. 19, and claims process began that same date. Payments have started going out to eligible claimants this week,” Gosselin said.

“All eligible claims were fully covered by the security posted by Canpulse Foods Ltd. and Global Grain Canada Ltd.,” said the release.

“Payment protection is afforded to producers who deliver into the western Canadian licensed handling system … licensed grain dealers, primary and process elevators,” Gosselin explained. “Terminals don’t post security.

All farmers who deliver regulated grain to a licenced grain company with appropriate documentation and demand payment during eligibility periods are protected under the Safeguards for Grain Farmers Program, he said. They must report non-payment to the Canadian Grain Commission immediately.

“The Safeguards for Grain Farmers Program applies these rules to determine if producers’ claims are eligible. These rules apply to each grain delivery they make. Their payment claim must meet all of these rules to be eligible,” he added.

The CGC “is committed to ensuring producers are fairly compensated for their deliveries,” Doug Chorney, chief commissioner of the CGC, said in the March. 2 release. “Our Safeguards for Grain Farmers Program plays a key role in protecting producer rights, and we are very pleased to be able to fully compensate producers using the security held through this program.” 

PhilAugustavo\E+ photo


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