Safeguards for Grain Farmers Program frequently asked questions

Payment protection

  • 1. If my contract is for multiple grain deliveries, how long am I eligible for compensation through the Safeguards for Grain Farmers Program?

    Each grain delivery will have its own eligibility window. You have 90 days from the date of each delivery to make a claim unless you receive a cash purchase ticket or cheque. If you’ve received a cash purchase ticket or cheque, you’re eligible for 30 days from the date it was issued.

    For example:

    • Delivery 1 is on July 11
    • Delivery 2 is on July 12
    • Delivery 3 is on July 13

    If you didn’t get a cash purchase ticket or cheque:

    • Delivery 1 is eligible for compensation up to and including October 9
    • Delivery 2 is eligible for compensation up to and including October 10
    • Delivery 3 is eligible for compensation up to and including October 11

    If you received a cash purchase ticket or cheque for all 3 deliveries on August 1, you’re eligible for compensation up to and including August 31.

    Learn more about compensation eligibility periods.

  • 2. If I defer my payment for my grain delivery, or if I’m issued a post-dated cheque, how long am I eligible for compensation?

    You have 90 days from the date of each delivery to make a claim unless you receive a cash purchase ticket or cheque. If you’ve received a cash purchase ticket or cheque, you’re eligible for 30 days from the date it was issued.

    If you requested a payment deferral and were not issued a cheque or cash purchase ticket, you’re still eligible for compensation under the Safeguards for Grain Farmers Program for 90 days after grain delivery.

    If you receive a cheque that is post-dated for more than 30 days later, you will not be eligible for compensation under the Safeguards for Grain Farmers Program.

    For example:

    Calendar of September and October 2022 to explain example 1, where Sarah delivers grain to ABC Grain Company on September 1 and is eligible for compensation until October 15.
    • Sarah delivered grain to ABC Grain Company on September 1 and received a combined primary elevator receipt.
    • On day 15 (September 16), ABC Grain Company issued and delivered her a cash purchase ticket or cheque that was post-dated to day 25 (September 26).
    • Sarah is eligible for compensation under the Safeguards for Grain Farmers Program until day 44 (October 15), 30 days after the licensee issued and delivered the cheque.

    For example:

    Calendar of October 2022 to explain example 2, where Tom delivers grain to ABC Grain Company on October 1 and is eligible for compensation until October 31
    • Tom delivered grain to ABC Grain Company on October 1 and received a combined primary elevator receipt and a cheque post-dated to day 25 (October 26)
    • Tom is eligible for compensation under the Safeguards for Grain Farmers Program until day 30 (October 31), 30 days after receiving the post-dated cheque.

    Learn more about compensation eligibility periods.

Contracts and waivers

  • 3. Will the Canadian Grain Commission review my grain delivery contract before I sign it?

    The Canadian Grain Commission has very limited authority on grain delivery contracts and does not review or provide advice on contracts between producers and grain companies. We recommend consulting with your lawyer if you have any questions about your contract.

    The Government of Saskatchewan has a grain contracts resource available for producers that can help provide more general information.

    If you think your grain contract is in conflict with the Canada Grain Act or Canada Grain Regulations, please contact us.

  • 4. I didn’t sign the contract the grain company gave me. Am I still bound by it?

    It depends. Contracts may contain a clause that says the contract is binding if unsigned. You should always read your contract carefully and consult your lawyer if you have any questions.

  • 5. What are the implications of signing the waiver on my combined primary elevator receipt?

    Under subsection 67(1) of the Canada Grain Act, licensees have an obligation to deliver the identical grain or grain of the same kind, grade and quantity on request of a holder of a combined primary elevator receipt. However, if you have signed the waiver on your combined primary elevator receipt, there is no obligation for the licensed company to return grain of the same grade (or better) to you if requested. The licensed company is still obligated to settle for the amount owed to you.

    In the event of a licensee failure, you are not entitled to the return of grain of the same grade (or better) if you signed the waiver.

  • 6. Is there anything I can do about a buy-out clause if my contract with a grain company is already binding?

    The Canadian Grain Commission has very limited authority on grain delivery contracts and is not in a position to provide advice on individual contracts. We recommend consulting with your lawyer if you have any questions on buy-out clauses or other contract provisions.

  • 7. What can I do if a licensed company doesn’t accept my grain delivery during the agreed upon delivery period?

    There should be a penalty clause provision in your contract stating that, in the event of delivery of grain indicated in the contract is not accepted by the licensee during the delivery period, a penalty is to be paid by the licensee to the producer. This clause is a requirement under the Canada Grain Regulations.

    You should always read your contract carefully and consult your lawyer if you have any questions.

Rights at delivery

  • 8. What documentation should I receive when I deliver grain to a licensed primary elevator?

    After grain is unloaded, the elevator operator should give you a combined primary elevator receipt or, if they purchase the grain immediately, they should give you cash purchase ticket(s), cheque(s) or electronic payment (for example, an e-transfer).

  • 9. What documentation should I receive when I deliver grain to a licensed process elevator or grain dealer?

    After grain is unloaded, the process elevator operator or grain dealer should give you a grain receipt or, if they purchase the grain immediately, they should give you cash purchase ticket(s), cheque(s) or electronic payment (for example, an e-transfer).

  • 10. What information should be included in the primary elevator receipt or grain receipt?

    The documentation you receive from a licensed primary elevator, process elevator or grain dealer should show the:

    • grain
    • grade
    • weight
    • date of delivery

    There are examples of grain receipts and cash purchase tickets included in the Canada Grain Regulations. Grain companies must issue documents that include the same information.

  • 11. What do I do if I’m having trouble getting paid or have a disagreement with the licensed primary elevator about the grade, dockage, protein or moisture assessed for my grain delivery?

    If you (or someone delivering grain on your behalf) disagree with a licensed primary elevator’s assessment of your grain’s quality, you have the right to dispute the assessment by asking for a Final Quality Determination. You can do so by asking that a representative sample of your grain be sent to the Canadian Grain Commission.

    If you have any questions about your eligibility for compensation or about your rights when you deliver grain to a grain company, contact us immediately. Learn more about the Safeguards for Grain Farmers Program.

  • 12. Does a company have to declare bankruptcy before the Canadian Grain Commission can help producers get paid?

    No. If at any point you are having trouble getting paid promptly or getting the proper grade, dockage or tonnage for your grain delivery, contact the Canadian Grain Commission.

    Failure to pay by a licensed grain company could involve any of the following problems:

    • the company asks you to delay cashing its cheque outside of the payment timeline stipulated in the contract
    • the company refuses to give you a cheque
    • the company’s cheque bounces
    • the company delays issuing a cheque past the date indicated in the contract by which you should have been paid
  • 13. Are licensed grain companies allowed to lower my grain’s official grade because of non-grading factors like Falling Number?

    No. A licensed grain company cannot lower your grain’s official grade because of non-grading factors. However, they can include a clause in their contracts that states that grain has to meet certain quality requirements, which can include non-grading factors. Not meeting those requirements may result in discounts.

    You should always read your contract carefully and consult your lawyer if you have any questions.

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