Farmers who were not paid for grain delivered to Zeghers Seed Inc will receive over $1.2 million in compensation, the Canadian Grain Commission (CGC) said Thursday.
Following a review of individual producer claims, the CGC determined that there were 27 eligible claims for unpaid deliveries. Producers will receive 100% compensation for the eligible claims, the IGC said, with the money coming from the company’s posted security.
Holland, MB-based Zeghers had its primary elevator and grain dealer licences revoked by the CGC back in March.
As a condition of licensing, grain companies must tender security for outstanding grain liabilities to producers to the CGC as a bond, letter of credit, letter of guarantee, or payables insurance. If a licensed company does not meet its payment obligations, the CGC uses the company’s security to compensate eligible producers.
If a licensee fails to meet its obligations, producers are eligible for compensation within 90 days from the date of their grain delivery or within 30 days from the date a cash purchase ticket or cheque was issued to them.
Source : Syngenta.ca