APAS calls for review of CGC's bonding and licensing system

The Agricultural Producers Association of Saskatchewan is calling for an immediate review of the Canadian Grain Commission's bonding and licensing system to better safeguard producers.

At 11:59 on August 27, 2024 the Canadian Grain Commission revoked the grain dealer license for Purely Canada Foods and its grain operations in Saskatchewan. Farmers in Manitoba, Saskatchewan and Alberta that may have unpaid deliveries with the company should contact the CGC immediately.

APAS notes that this recent cancellation marks the fourth instance in recent months where grain companies have had their licenses revoked.

They say given the scale of these license revocations and their potential to significantly impact producers, the need for a robust and responsive protection framework has never been more apparent. Especially with an increasing number of grain buyers, particularly in the small acre and specialty crop sector, losing their licenses because of failing to fully compensate producers.

APAS says a better system is needed, the CGC’s goal should be to identify any gaps or weaknesses in the current system and implement reforms to improve financial protections for producers. 

President Ian Boxall says payment security is the cornerstone in safeguarding the interests and livelihoods of farmers. It's hard to fathom that, despite its significance, the program has seen little to no improvement for over 15 years.

Given the scale of these license revocations and their potential to significantly impact producers, the need for a robust and responsive protection framework has never been more apparent. This is ever more pressing given the alarming trend of an increasing number of grain buyers, particularly in the small acre and specialty crop sector, losing their licenses because of failing to fully compensate producers.

"The toll it takes on a farm when payments aren't made can't be overstated. Producers are left facing not only financial duress but significant emotional and mental strain," Boxall added. "Furthermore, the revocation of licenses in key areas of our market only serves to stifle the very competition and diversification we strive for in our agricultural sector. A better approach is needed."

The CGC’s goal should be to identify any gaps or weaknesses in the current system and implement reforms to improve financial protections for producers. As the CGC's mandate prioritizes producer interests, it is incumbent upon them to perform the necessary analysis and exercise evidence-based policymaking to fortify a program that is crucial for the financial stability of farmers.

APAS urges all producers who have conducted business with Purely Canada Foods Corp and are concerned about outstanding payments to promptly contact the CGC at compliance-conformite@grainscanada.gc.ca or by calling 1-800-853-6705.

APAS stands with the members of the farming community facing these types of uncertainties and will relentlessly campaign for greater transparency and producer protection in Canada’s grain industry. Enhanced producer protections are vital to maintain confidence and security in the Canadian grain markets. Trust in the system can only be maintained through clear communication, stringent oversight, and comprehensive reforms to prevent future financial risks to farmers.