Naber Specialty Grains Ltd.: payments issued to eligible producers for unpaid deliveries
August 29, 2016 – Winnipeg, Manitoba – Canadian Grain Commission
Producers who did not receive payment for grain delivered to Naber Specialty Grains Ltd. have been issued payments for their eligible claims through the Canadian Grain Commission’s Payment Protection Program.
In June 2016, producers were invited to make claims against the $150,000 security posted by Naber Specialty Grains Ltd. The 26 eligible producers made claims totalling $1,055,927. Eligible claims represent the value of regulated grains delivered to Naber Specialty Grains Ltd. for which a primary elevator receipt has been issued to producers within the 90 days prior to May 9, 2015. Unfortunately, payments for claims made against the security posted cover only 14.2% of these claims.
Naber Specialty Grains Ltd. was licensed by the Canadian Grain Commission to operate a primary grain elevator in Melfort, Saskatchewan until May 8, 2015. It was placed into receivership on June 18, 2015 leaving unsatisfied obligations.
As this matter has been referred to the Royal Canadian Mounted Police for investigation, the Canadian Grain Commission will not be commenting further at this time.
Producers are encouraged to contact the Canadian Grain Commission with any questions about financial protection for grain deliveries.
- The Payment Protection Program applies to 20 grains and oilseeds regulated under the Canada Grain Act
- Licensed grain dealers, primary elevators and process elevators are required to post security in the form of a bond, letter of credit, cash deposit or payables insurance to cover their potential liabilities to grain producers
- They are also required to accurately report their producer liabilities to the Canadian Grain Commission on a monthly basis
- This monthly report is used to determine security requirements relative to potential producer liabilities
- If a licensee chooses not to report accurately, the Canadian Grain Commission may unknowingly hold insufficient security to pay 100% of the outstanding liabilities
- If a company is unable to pay producers, this security is divided on a prorated basis among all eligible claimants owed money for their grain
Minimize your risk
To minimize the risk of not getting paid for their deliveries, producers are encouraged to:
- understand if the company they are dealing with is licensed by the Canadian Grain Commission
- ensure they are in receipt of an authorized document (i.e. receipt, cash purchase ticket or cheque) upon delivery to a company licensed by the Canadian Grain Commission
- cash cheques or deposit funds right away
- contact the Canadian Grain Commission immediately if they do not receive prompt payment for their delivery or if they experience any issues with payment
Manager, Corporate Information Services
Canadian Grain Commission
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.
- Date modified: