Producers will be compensated at 75 per cent
Farmers who conducted business with Global Food and Ingredients (GFI) will receive compensation from the Canadian Grain Commission.
“Following a review of individual producer claims, the Canadian Grain Commission determined that there were 29 eligible claims totalling $2.661 million for unpaid deliveries to Global Food and Ingredients Inc.,” the CGC said in an Oct. 21 statement. “The company had $2 million in security available so individual payments will be prorated. As a result, producers will receive 75% compensation for their eligible claims. Cheques have been mailed to producers.”
For clarity, $2.661 million divided by 29 equals $91,758 per claim.
Seventy-five per cent of the claim amount equals $68,818.50.
Some producers could receive additional compensation.
The CGC is working with the receiver “to realize on proceeds from the sale of the company’s grain inventory,” it said.
Holders of outstanding primary elevator receipts could receive some of those funds once receivership has been concluded.
GFI, which purchased peas, lentils, chickpeas and other crops, announced its wind down in May.
The company had four grain elevators in Western Canada - in Lajord, Sedley and Zealandia, Sask., and in Bowden, Alta.
Multiple macro-economic events made it “near impossible” for GFI to service its debts, and a wind down was the most appropriate action, the company said in a May 7 statement.
The CGC has made 32 payments to producers through the Safeguards for Grain Farmers Program since 1981.
The highest payout occurred in the 2018-19 crop year, when 222 farmers received 100 per cent of their payout related to Ilta Grain, totaling more than $11 million.