The Canadian Grain Commission (CGC) says it has provided 100 per cent compensation to eligible producers for unpaid grain delivered to or picked up by LSM Grain Ltd.
There were also 17 claims that could not be compensated because the deliveries fell outside of the 90-day eligibility period of the Safeguards for Grain Farmers Program, the CGC says.
Following a review of individual producer claims, the Commission says it determined that there were nine eligible claims totalling over $395,000 for unpaid deliveries to LSM Grain Ltd. Producers with eligible claims will receive 100 per cent compensation from the company’s $2 million security.
As a condition of licensing, grain companies are required to tender security for outstanding grain liabilities to producers to the Canadian Grain Commission as 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 compensate eligible producers through the producer payment security program.
If a licensee fails to meet its obligations, producers are eligible for compensation within 90 days from the date of their grain delivery or within 30 days from the date a cash purchase ticket or cheque was issued to them. The lesser of these two time periods applies. Producers must contact the Canadian Grain Commission within these periods to be eligible for compensation. If Canadian producers request a payment deferral and are not issued a cheque or cash purchase ticket from a primary licensed grain elevator, they’re eligible for compensation for 90 days after each grain delivery. If they receive a cheque that is post-dated for more than 30 days later, they will not be eligible for compensation under the Safeguards for Grain Farmers Program.
