ILTA Grain Inc. was put under creditor protection in July 2019, resulting in the company defaulting on amounts owed to grain farmers for unpaid deliveries. The Canadian Grain Commission subsequently assessed 271 individual claims from producers, the largest number ever received against a company’s security.
Following a review of individual producer claims, the Canadian Grain Commission determined that 222 were eligible for over $11 million in compensation. These claims are fully covered by the security posted by ILTA Grain Inc. under the terms of its licences.
“The Canadian Grain Commission is committed to ensuring Canadian grain producers are fairly compensated for their deliveries. The ILTA Grain Inc. situation has been a difficult one for everyone involved, and we are very pleased to be able to deliver over $11 million in payments to producers who were owed money.”
Chief Commissioner and Deputy Head, Canadian Grain Commission
The Canadian Grain Commission’s Safeguards for Grain Farmers Program regulates grain companies to mitigate the risk of payment failure to producers and to support the grain quality assurances system.
As a condition of licensing, licensed grain companies are required to tender security for outstanding grain liabilities to the Canadian Grain Commission as a bond, letter of credit, letter of guarantee, cash deposit, trust account or payables insurance.
If a licensed company does not meet its payment obligations, the Canadian Grain Commission uses the company’s security to compensate eligible producers.
Producers must submit their claims for compensation within 90 days of delivery or within 30 days from the date the cash purchase ticket or cheque was issued, whichever is less.