It doesn’t hurt to check, says grain commission

Only licensed grain companies are required to post security that ensures farmers are paid for deliveries

The Canadian Grain Commission is reminding producers that only licensed grain companies provide security that ensures farmers are paid when they deliver grain.

“Do you know if the company you’re delivering to is licensed?” the commission asked in a recent tweet.

A complete list can be found under ‘Licensed grain companies’ at the Canadian Grain Commission website. There are 159 licensed grain companies on the list (which was updated Nov. 22, 2018) that are required to post security (typically in the form of a bond or letter of credit).

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“This list includes all grain companies that are licensed as a primary elevator, process elevator, terminal elevator, or grain dealer,” the commission states on its website.

“If a company is not on the list, it is not licensed. Unlicensed grain companies are either exempted from licensing, outside the jurisdiction of the Canada Grain Act, or in violation of the act. Unlicensed grain companies do not provide security, and none of the protections of the act apply, including payment protection.”

Last fall, the commission decided that it would remain ‘seller beware’ when it comes to delivering grain to feed mills. The grain commission also said it will continue to exempt agents with primary or process elevator facilities and producer railway car loading facilities from licensing and posting security.

“After consulting with the sector, the commission has decided that grain handlers that fall under one of these three categories may operate without a Canadian Grain Commission licence as long as they continue to meet the conditions associated with their respective exemptions,” the agency said in September. “This decision reflects the clear feedback provided by stakeholders, as well as an analysis of the relative risks these types of operations pose to producers and the grain quality assurance system.”

The commission is also reminding producers it will have staff at upcoming farm shows who can answer any questions about grain grading. It will have a booth at FarmTech in Edmonton on Jan. 29-31; at Agri-Visions in Lloydminster on Feb. 13-14; Ag-Expo in Lethbridge from Feb. 2 to March 1; the Peace Country Classic Agri-Show March 7-9, and the Smoky River Ag Show March 14-16.

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