By Alice McFarlane

Grain commission to compensate eligible producers owed money by Saskatoon-based company

Nov 15, 2024 | 12:16 PM

Canadian Grain Commission (CGC) will compensate eligible producers 100 per cent for unpaid deliveries to LSM Grain Ltd., but not all producers that applied will be getting money.

Producers will receive payment through the Safeguards for Grain Farmers Program from the company’s $2 million security.

CGC revoked the grain dealer licence of LSM Grain on July 23, 2024. Following a review, it was determined there were nine eligible claims totalling over $395,000 for unpaid deliveries.

CGC also received 17 claims that cannot be compensated because the deliveries fell outside of the 90-day eligibility period.

Chief Commissioner David Hunt Chief Commissioner said they were happy to be able to provide the compensation.

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“If producers are having difficulties getting paid, we encourage them to contact us immediately and we will do everything we can to help them,” Hunt said.

As a condition of licensing, grain companies are required to tender security for outstanding grain liabilities to producers to CGC as a bond, letter of credit, letter of guarantee, or payables insurance. If a licensed company does not meet its payment obligations, the CGC uses the company’s security to compensate eligible producers.

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 CGC within these periods to be eligible for compensation.

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alice.mcfarlane@pattisonmedia.com

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