Archived - Producers compensated after grain dealer West-Can Agra Inc. licence cancelled
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WINNIPEG, June 10, 2009 – The Canadian Grain Commission (CGC) announced today that producers who sold grain to West-Can Agra Inc. in Plum Coulee, Manitoba will receive compensation under the Canada Grain Act for eligible claims for the grain they delivered.
At the end of business on February 10, 2009, the CGC cancelled West-Can Agra Inc.’s grain dealer licence. As a result, it was de-licensed effective February 11, 2009. The CGC used the $300,000 security posted by West-Can Agra Inc. to compensate producers that had filed eligible claims with the CGC and who were not paid by West-Can Agra Inc. for grain delivered to it while it was still licensed.
Of the 23 producers who submitted claims against West-Can Agra Inc.’s $300,000 security, 17 producers were eligible for compensation. Six producers were not eligible because their claims fell outside of the eligibility period. A final audit found that the total value of eligible producer claims received by the CGC was $453,688.45. This resulted in 66.1% compensation out of the $300,000 security.
The CGC has notified all eligible producers of their compensation. Cheques will be mailed to them accordingly. As well, the CGC has notified all ineligible producers that their claims are not covered by security.
“It is unfortunate when a member of the grain industry encounters difficulties like this,” said CGC Chief Commissioner Elwin Hermanson. “I sympathize with those producers who lost money because the security posted by West-Can Agra Inc. was insufficient.”
The recourse for non-payment under the Canada Grain Act is limited. The amount available for compensation depends on the amount of security posted by the licensed company. There is no guarantee of full payment. Producers are only covered by a licensed company’s security for 90 days from the date they delivered their grain or 30 days from the date they were issued a cash purchase ticket or cheque. The lesser of the two time periods applies.
If producers are not paid because a licensed grain company refuses or is unable to pay for a grain delivery, producers are required to contact the CGC within 30 days. If producers wait longer than 90 days from the date they delivered their grain to get paid, or they do not advise the CGC within 30 days of a licensed company’s refusal to pay them, they are not eligible for compensation.
The CGC is the federal agency responsible for establishing and maintaining Canada’s grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The CGC regulates the grain industry to protect producers’ rights and to ensure the integrity of grain transactions.
Contact:
Rémi Gosselin
Canadian Grain Commission
Telephone: 204-983-2749
Email: remi.gosselin@grainscanada.gc.ca