Producers who were not paid for grain delivered to LSM Grain Ltd. will be fully compensated for their eligible claims through the Canadian Grain Commission’s Safeguards for Grain Farmers Program.

“We are pleased to provide 100% compensation to producers with eligible claims. If producers are having difficulties getting paid, we encourage them to contact us immediately and we will do everything we can to help them through our Safeguards for Grain Farmers Program.”

David Hunt
Chief Commissioner, 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 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.

• 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.

Associated links

• Safeguards for Grain Farmers Program - Payment protection
• Safeguards for Grain Farmers frequently asked questions
• History of payments to producers
• Canada Grain Act

Christianne Hacault
Head of communications
Canadian Grain Commission
204-229-0128
christianne.hacault@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