The president of the Agricultural Producers Association of Saskatchewan thinks it’s time for the Canadian Grain Commission to take a look at its policies to deal grain.
“(Farmers) deliver millions and billions of dollars of grain, and we need to ensure that we have that safety net or that backstop in place,” said Ian Boxall.
On Tuesday, the Canadian Grain Commission revoked the licence of Purely Canada Food Corps. The company’s grain dealer and primary elevator licence will stop operating in Avonlea, Kindersley, and Lajord.
Boxall said the push for a review comes after a fourth instance in several months where grain companies have had licences revoked.
“I am out $160,000 to one of those four,” Boxall said. “It is time that this looked at and analyzed and studied, to make sure that program works and the system is adequate enough to cover off those deliveries.”
Boxall said the CGC needs to specifically look at policies for the licensing and bonding systems.
If farmers are owed money by Purely Canada, the CGC is asking them to contact it immediately.
A request to Purely Canada Food Corps for comment was unaswered at the time of publication.
Jake Leguee, the board chair of the Saskatchewan Wheat Development Commission, said it is unfortunate to see a company’s licence revoked.
He said it could not come at a worse time for farmers, during harvest.
“It’s stressful, it’s scary, and it shouldn’t have to happen,” he said.
Leguee said the benefit of the CGC is that if the company is bonded with it, farmers are guaranteed to get at most of their money back if they are not paid for their shipments.
“As farmers, we all do contracts in good faith,” he said. “We choose to work with the companies that we work with because we trust them. When that trust gets broken like this it’s quite disheartening.”
Leguee encouraged farmers to reach out to the CGC as soon as possible, if they are owed money by Purely Canada.
Leguee farms near Filmore, a town 100 kms southeast of Regina. He said he has sold grain to Purely Canada in the past, but not recently.
“Getting money back out of this situation can make or break a farm,” Leguee said. “That’s why it is so important for the Canadian Grain Commission to work in the best interest of farmers, and continue to provide this backstop.”
Boxall said the CGC’s policies needs to be stronger.
“It’s time for a review,” he said. “It’s time that system was modernized to what things are today, and how things work today. Those numbers the company need to cover off all of the money they have going out to producers for deliveries.”
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