Canadian Grain Farmers to Receive Full Compensation for Unpaid Grain
Producers owed payment for grain supplied to LSM Grain Ltd. will be fully reimbursed through the Canadian Grain Commission’s (CGC) Safeguards for Grain Farmers Program.
LSM Grain Ltd.’s grain dealer licence was revoked on July 23, 2024, after a CGC investigation. Following the assessment of claims, nine eligible cases, totalling over $395,000 in unpaid grain deliveries, were identified. These claims will be compensated in full from the company’s $2 million security deposit.
David Hunt, Chief Commissioner of the CGC, said “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.”
However, the CGC received 17 additional claims that were deemed ineligible as the deliveries occurred outside the program’s 90-day eligibility window.
The Safeguards for Grain Farmers Program is designed to protect producers against payment defaults while upholding the integrity of Canada’s grain quality assurance framework.
As part of the licensing process, grain companies must provide security to the CGC in the form of a bond, letter of credit, guarantee, or payables insurance. This security is used to compensate eligible producers if a company fails to meet its obligations.
Producers can claim compensation if payment issues arise within 90 days of delivery or 30 days after a cheque or cash purchase ticket is issued whichever is shorter. Farmers must notify the CGC within these periods to qualify for assistance.
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