Payment protection for grain producers

Contact

Canadian Grain Commission
600-303 Main Street
Winnipeg MB  R3C 3G8

Telephone: 204-984-0506
Toll-free 1-800-853-6705
Email: contact@grainscanada.gc.ca

Make a payment complaint

Are you having trouble getting paid promptly or getting the proper grade, dockage or tonnage for your grain delivery? If your delivery is to a licensed primary elevator, process elevator or grain dealer, contact the Canadian Grain Commission to make a complaint to the Safeguards for Grain Farmers Program. The Safeguards for Grain Farmers Program will investigate your complaint so that you can get paid.

Safeguards for Grain Farmers Program

Licensed grain companies must provide security to the Canadian Grain Commission to cover money owed to producers for grain deliveries. When a licensed company fails to pay, the Safeguards for Grain Farmers Program uses the company’s security to pay you if your claim is eligible. Failure to pay could involve any of the following problems:

  • the company asks you to delay cashing its cheque
  • the company refuses to give you a cheque
  • the company’s cheque bounces

If you have any questions about your eligibility for compensation or are experiencing a situation not described here, contact the Canadian Grain Commission immediately.

Eligibility for payment protection

To be protected under the Safeguards for Grain Farmers Program:

The Safeguards for Grain Farmers Program applies these rules to determine if your claim is eligible. These rules apply to each grain delivery you make. Your payment claim must meet all of these rules to be eligible.

Deliver to a licensed grain company

Your delivery must be to a licensed primary elevator, process elevator or grain dealer. Security does not cover grain that is in condominium storage in a licensed primary elevator.

Deliver regulated grain

The crop you deliver must be one of the grains regulated under the Canada Grain Act.

Get the proper documents

For each grain delivery, you must get 1 of the following documents from the company, showing the grain, grade, weight and date of delivery.

  • A primary elevator receipt will be issued when a licensed primary elevator receives grain for storage, and the producer has not sold the grain
  • A grain receipt will be issued upon delivery of grain when ownership transfers to the licensed process elevator or grain dealer
  • A cash purchase ticket or cheque will be issued when the producer is paid on delivery to a licensed primary elevator, process elevator or grain dealer

Scale tickets are not accepted for payment claims.

Demand payment during eligibility periods

Exchange your primary elevator receipt or grain receipt for a cash purchase ticket or cheque and deposit any cheque or cash purchase ticket during the compensation eligibility period.

Deadline for claims

To make a claim to the Safeguards for Grain Farmers Program, you must contact the Canadian Grain Commission within 30 days from the date that the company’s cash purchase ticket or cheque bounced at your bank or credit union.

Eligibility periods

You are eligible for compensation paid from the licensed company’s security for a maximum of 90 days from the date of your grain delivery. If you wait longer than 90 days to exchange your primary elevator receipt or grain receipt for a cash purchase ticket or cheque, you are not eligible for compensation.

Once you receive a cash purchase ticket or cheque, you are eligible for compensation paid from the licensed company’s security for 30 days from the date it was issued, or until 90 days from the date of grain delivery. The lesser of these two time periods applies.

If a licensed company gives you a post-dated cheque, you are eligible for compensation paid from the company’s security for 30 days from the date it was issued, regardless of the date on the cheque. If you receive a post-dated cheque on October 1 dated November 15, you are eligible from compensation paid from the company’s security until October 31.

Examples

Example 1

Example 1: 30 days from payment. Details in paragraph following.
Greg delivered grain to XYZ Grain Company on Day 1, and received a primary elevator receipt. He exchanged his primary elevator receipt and XYZ Grain Company issued him a cash purchase ticket or cheque on Day 10. Under the Safeguards for Grain Farmers Program, Greg is eligible for compensation for up to 30 days from the date he received the cheque. Greg is eligible for compensation paid from XYZ Grain Company’s security until Day 40.

Example 2

Example 2: 90 days from delivery. Details in paragraph following.
June delivered grain to ABC Grain Company on Day 1, and received a primary elevator receipt. She exchanged her primary elevator receipt for a cheque on Day 80. June’s eligibility for compensation ends 90 days from the date she delivered her grain, so June is only eligible for compensation under the Safeguards for Grain Farmers Program for 10 days.

Claims process

When a producer makes a payment complaint, the Canadian Grain Commission will:

  1. determine if the company has failed or refused to pay the producer
  2. determine if the company’s licence should be revoked
  3. realize on the security by executing the letter of credit or bond, or making a claim against the insurance policy
  4. use ads in newspapers, a website notice, and social media to tell producers to contact the Canadian Grain Commission if they are owed money
  5. determine the amount of money owed to producers whose claims are eligible for payment out of the licensee’s tendered security
  6. pay producers whose claims are eligible

Payment for eligible claims

The Safeguards for Grain Farmers Program does not guarantee 100% payment from the company’s security. Payments to producers whose claims are eligible are based on the amount of security posted by a company compared to the total monetary amount of eligible claims received. If the company’s posted security is less than the total of eligible claims, payment is pro-rated.

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