78 Producers Fully Compensated for Unpaid Grain Deliveries to Purely Canada Foods Corp.

Canadian Grain Commission compensates producers for unpaid deliveries to Purely Canada Foods Corp.

From: Canadian Grain Commission

News release

Producers who were not paid for grain delivered to Purely Canada Foods Corp. have been fully compensated for eligible claims submitted to the Canadian Grain Commission’s Safeguards for Grain Farmers Program.

Winnipeg, Manitoba (March 6, 2025) – Producers who were not paid for grain delivered to Purely Canada Foods Corp. have been fully compensated for eligible claims submitted to the Canadian Grain Commission’s Safeguards for Grain Farmers Program.

Purely Canada Foods Corp. held a grain dealer licence and 3 primary elevator licences for facilities located in Avonlea, Kindersley and Lajord, Saskatchewan. The Canadian Grain Commission revoked these licences on August 27, 2024 and ordered the company to stop buying grain from producers.

Following a review of individual claims submitted by producers, the Canadian Grain Commission determined there were 78 eligible claims for unpaid deliveries to Purely Canada Foods Corp., totalling over $17 million. Producers with eligible claims received 100% compensation from the company’s security. This is the largest payout in the history of the Safeguards for Grain Farmers Program.

The Canadian Grain Commission also received multiple claims that cannot be compensated because the deliveries fell outside of the program eligibility period. The Canadian Grain Commission is advocating for producers still owed money and encouraging them to seek payment directly from the company.

Quotes

“The Canadian Grain Commission is committed to ensuring producers are fairly compensated for their grain. Our Safeguards for Grain Farmers Program plays a key role in securing payments for producers, and we are pleased to be able to provide 100% compensation for eligible claims.”

David Hunt

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.
• 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 2 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

Contacts

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.

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2025-03-06