Eligible producers receive 100% compensation for unpaid deliveries to ILTA Grain Inc.
Eligible producers who were not paid for grain delivered to ILTA Grain Inc. will be fully compensated through the Canadian Grain Commission’s Safeguards for Grain Farmers Program. Payments have been issued and will be delivered in the coming days.
ILTA Grain Inc. was put under creditor protection in July 2019, resulting in the company defaulting on amounts owed to grain farmers for unpaid deliveries. The Canadian Grain Commission subsequently assessed 271 individual claims from producers, the largest number ever received against a company’s security.
Following a review of individual producer claims, the Canadian Grain Commission determined that 222 were eligible for over $11 million in compensation. These claims are fully covered by the security posted by ILTA Grain Inc. under the terms of its licences.
“The Canadian Grain Commission is committed to ensuring Canadian grain producers are fairly compensated for their deliveries. The ILTA Grain Inc. situation has been a difficult one for everyone involved, and we are very pleased to be able to deliver over $11 million in payments to producers who were owed money.”
Chief Commissioner and Deputy Head, Canadian Grain Commission
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 assurances system.
As a condition of licensing, licensed grain companies are required to tender security for outstanding grain liabilities 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.
Producers must submit their claims for compensation within 90 days of delivery or within 30 days from the date the cash purchase ticket or cheque was issued, whichever is less.
Head of communications
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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