Three pulse and special crop buyers’ CGC licenses suspended

If you're owed money for grain delivered to Globeways Canada, Global Grain Canada or Canpulse Foods contact the CGC right away

Farmers who haven’t been paid for grain delivered to Globeways Canada, Global Grain Canada or Canpulse Foods should contact the Canadian Grain Commission (CGC) as soon as possible.

The CGC suspended the licenses of all three for 30 days effective Saturday after it was notified the firms no longer had security to cover money owed to farmers, CGC spokesman Remi Gosselin said in an interview Saturday.

“Producers who are owned money by these three companies should contact the CGC as soon as possible,” Gosselin said.

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The CGC is holding security for liabilities incurred before Oct. 31, but Gosselin declined to say how much.

Why it matters: Farmers who haven’t been paid for grain delivered to these three entities may be eligible for security held by the Canadian Grain Commission — but they must contact the commission.

The three companies are inter-related through a common controlling interest with Globeways Canada Inc., headquartered in Mississauga. Ont.

Global Grain Canada has a primary elevator at Plum Coulee, Man., and Canpulse Foods has one at Kindersley, Sask.

“We will be conducting an audit next week so at this point it’s too early to tell if there is enough security in place to cover liabilities prior to Oct. 31,” Gosselin said. “But each of the entities had security.

“We suspended their license for 30 days to allow them to obtain alternate security coverage if they can.”

If they can it’s possible the companies could once again be licensed by the CGC and resume buying grain from farmers, he added.

“Now the priority for us is to make sure there is adequate security in place to cover deliveries prior to Oct. 31 and that the producers that delivered to them are not at risk of non-payment,” Gosselin said. “So we’re asking producers that haven’t gotten paid, or are still getting payment to contact us.”

Gosselin stressed the safest strategy for farmers is to get paid when they deliver grain.

Under the CGC’s producer payment protection program licensed buyers are obliged to post security to cover money owed to farmers for delivered grain. But the protection is for a limited time.

Coverage only applies for 90 days after receiving an elevator or grain receipt. Farmers have just 30 days of protection after getting a cheque, but within that 90 days.

“Let’s say for example you are on day 89, you’ve got one day left to cash a cheque to remain eligible,” Gosselin said.

If the cheque is cashed on day 91 and bounces the farmer is ineligible for security payments, he said.

About the author

Reporter

Allan Dawson

Allan Dawson is a reporter with the Manitoba Co-operator based near Miami, Man. Covering agriculture since 1980, Dawson has spent most of his career with the Co-operator except for several years with Farmers’ Independent Weekly and before that a Morden-Winkler area radio station.

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