Updated, Nov. 26, 2012 — Farmers owed money for deliveries made to Newco Grain when the southern Alberta company was still a federally-licensed grain dealer have received what they’re owed, minus five per cent.
The Canadian Grain Commission reported Friday that farmers who “did not receive payment for grain sold to Newco… have received compensation for their eligible claims” through the CGC’s payment protection program.
Newco, which still operates as a grain brokerage at Coaldale, about 15 km east of Lethbridge, was a CGC-licensed grain dealer up until May 11 this year.
Producers are only covered by a CGC-licensed company’s security for 90 days from the date they delivered their grain — or 30 days from the date they received a cash purchase ticket.
Still, the CGC said, it can’t guarantee 100 per cent compensation, “and in the case of Newco Grain Ltd., eligible producers only received 95 per cent of the amount they were owed.”
However, Newco said in an email Monday (Nov. 26), now that its bond posted with the CGC has been paid out to producers, the company “will be assuming the responsibility to repay farmers the remaining five per cent owing.”
“When a licensed company is unable to pay producers, we work to ensure producers receive compensation,” CGC chief commissioner Elwin Hermanson said in Friday’s release.
However, he noted, “while we license primary, process, terminal and transfer elevators and grain dealers, we do not license companies such as feedlots.”
Furthermore, he noted, deliveries made to unlicensed companies aren’t covered under the CGC protection program.
CORRECTION, Nov. 26, 2012: The previous version of this article incorrectly described Newco’s current operation as that of a feed grain merchant. The company today operates as a grain brokerage. We regret the error.