Financial protection for your grain deliveries
How does the Payment Protection Program work?
If a grain elevator or dealer that we have licensed is unable or unwilling to pay you for your grain delivery, you have the right to submit a claim for compensation through our Payment Protection Program. This program applies to deliveries you make to primary elevators, process elevators and grain dealers that we have licensed.
Licensed companies must provide security to cover amounts owed to producers for grain deliveries. If a company is unable to pay you, this security is divided among all producers owed money for their grain. This doesn’t necessarily mean you will be paid 100% of what you are owed, but it does provide a level of protection.
Reduce your risk of not being paid for your grain delivery
- We recommend that you do business with companies that are licensed by us.
- Be aware of the rules that you need to follow to be eligible for compensation:
- Compensation applies to official grains that are specified under the Canada Grain Act.
- When delivering grain, always get a primary elevator receipt, grain receipt or cash purchase ticket that identifies the grain, grade, weight, price and date of delivery. A scale ticket is not accepted for compensation claims.
- If you are not paid the same day you deliver your grain to a licensed primary elevator, you must exchange your primary elevator receipt for a cash purchase ticket or cheque.
- If you deliver grain to a company that is licensed by us and you are not paid, you may make a claim for compensation within 90 days from the date of your delivery. If you wait longer than 90 days to exchange your elevator or grain receipt for a cash purchase ticket or cheque, you are not covered.
- Once you receive a cash purchase ticket or cheque, you are covered by the licensed company’s security for 30 days maximum from the date it was issued, or until 90 days from the date of grain delivery. The lesser of these 2 time periods applies, as examples explain.
- If a licensed grain company gives you a post-dated cheque for payment, you are covered for 30 days maximum from the date it was issued, regardless of the date on the cheque. For example: You get a post-dated cheque on October 1. The cheque is dated November 15. You are only covered by the licensed company’s security until October 31.
- If you experience any delays in being paid, contact us immediately. When a licensed company refuses to pay you for your grain or keeps stalling on payment or the financial institution denies payment on your cash purchase ticket or cheque, you have 30 days to notify us in writing.
- Condominium storage is not eligible for compensation.
- Limit your risk exposure
- When you make a grain delivery and don’t seek payment or when you defer your payment, you are in effect, lending your grain or money to the buyer. Generally, the sooner you get paid, the lower your risk of payment loss.
- Ask questions
- Ask when you will get paid before you make your delivery, especially if you don’t know the buyer.
- Make certain you understand your contract
- At the Canadian Grain Commission, we do not approve contracts agreed to between producers and licensed companies. It makes good sense to read your contract. If necessary, have your lawyer review and explain any contract you sign.
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