The Canadian Grain Commission is issuing more than $1.2 million in compensation to producers who were not paid for grain delivered to Zeghers Seed Inc., at Holland, Manitoba.
The CGC says it has determined there were 27 eligible claims that will receive 100 per cent compensation from the security Zeghers held through the CGC’s producer payment security program.
The Commission revoked the grain dealer and primary elevator licenses of Zeghers Seed Inc. on March 25, 2024.
Canadian Grain Commission fully compensates eligible producer claims for unpaid deliveries to Zeghers Seed Inc.
“The Canadian Grain Commission is committed to ensuring producers are fairly compensated for their deliveries. Our Safeguards for Grain Farmers Program plays a key role in securing payments for producers, and we are pleased to be able to provide 100% coverage of eligible claims for unpaid deliveries to Zeghers Seed,” says CGC chief commissioner David Hunt, in a statement.
Licensed grain companies are required to have security for outstanding grain liabilities in the form of a bond, letter of credit, letter of guarantee, or payables insurance. If a licensed company does not meet its payment obligations, the Canadian Grain Commission uses the company’s security to pay eligible producers.
