Producers compensated average 80% for eligible deliveries to W.A. Grain & Pulse Solutions

News release

Producers who were not paid for grain delivered to W.A. Grain & Pulse Solutions will receive an average of 80% compensation for eligible claims through the Canadian Grain Commission’s Safeguards for Grain Farmers Program.

In addition to realizing on the security held by the company, the Canadian Grain Commission pursued and obtained payment for producers who held primary elevator receipts through sale of the company’s grain inventory, and also through the Bankruptcy and Insolvency Act. A total of 126 producers with eligible claims will receive total compensation of approximately $5.6 million for unpaid deliveries.

The Canadian Grain Commission suspended W.A. Grain & Pulse Solutions’ grain dealer licence and five primary elevator licences on April 20, 2021. The company entered receivership on April 26, 2021. The Canadian Grain Commission would like to thank all affected producers for their patience.

Quotes

“We are glad to be able to help producers owed money in this situation. The Canadian Grain Commission advocated for producers before the courts and used the full force of the Canada Grain Act to maximize compensation for eligible producers. While our aim is to put as much money as possible back in the pockets of producers, the Canadian Grain Commission cannot guarantee full compensation if companies do not meet their security obligations.”

Doug Chorney

Chief Commissioner, Canadian Grain Commission

Quick facts

  • The Canadian Grain Commission’s Safeguards for Grain Farmers Program regulates grain companies to mitigate the risk of payment failure to producers and to support the grain quality assurance system.

  • As a condition of licensing, licensed 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.

  • While the Canadian Grain Commission works closely with grain companies experiencing financial difficulty, maintaining sufficient security is a grain company obligation. The Safeguards for Grain Farmers Program is not able to guarantee full coverage for all unpaid 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.

Associated links

Contacts

Rémi Gosselin

Head of communications

Canadian Grain Commission

204-983-2749

remi.gosselin@grainscanada.gc.ca

Canadian Grain Commission

The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada’s grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The Canadian Grain Commission regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.

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