Canadian Grain Commission takes unique steps to protect grain producers who delivered to ILTA Grain Inc.

News release

August 7, 2019 Winnipeg Canadian Grain Commission

The Canadian Grain Commission is taking unique steps to protect grain producers who have delivered to ILTA Grain Inc.

The commission has negotiated the creation of an escrow account into which funds will be placed that relate to grain deliveries for which no cheques have been issued. Producers may be compensated from this account. The fund will be held by PricewaterhouseCoopers, the court-appointed monitor, until it has been determined how the funds will be distributed.

The commission has visited ILTA Grain Inc.’s offices and facilities and is completing a final audit to establish the number and amount of eligible claims. To date, the Canadian Grain Commission has heard from more than 200 producers.

To be eligible for a claim made under the Safeguards for Grain Farmers Program, a producer must:

Deliver to a licensed grain company
Deliver one of the twenty grains regulated by the Canada Grain Act
Present the proper documents (a primary elevator receipt, a grain receipt, a cash purchase ticket or cheque)
Demand payment during eligibility periods
Report non-payment to the Canadian Grain Commission

As part of the negotiation of the escrow agreement, the Canadian Grain Commission reinstated ILTA Grain Inc.’s grain dealer and primary elevator licences effective August 7, 2019, with the condition that ILTA Grain Inc. cannot purchase grain from, receive grain from, or otherwise incur liabilities to grain producers. ILTA Grain Inc. may sell, remove or otherwise transfer grain or grain products held or stored at its facilities.

The Canadian Grain Commission will contact any producers who have reported payment issues. Once the commission has confirmed the producers’ contact information, it will send each producer a completed claim form to sign and return to the Canadian Grain Commission as soon as possible. The claims process cannot move ahead without a signed claim form. Any producers who have not contacted the commission yet, but who delivered to ILTA Grain Inc. before July 11, 2019, and have not received payment, should immediately contact the Canadian Grain Commission at 1-800-853-6705.

Quotes

“One of the key conditions of reinstating ILTA Grain Inc.’s licences is that ILTA is not allowed to purchase grain from producers. At the Canadian Grain Commission, we take producer protection seriously. We have taken several steps to protect the rights of producers who have delivered to ILTA Grain Inc. including visits by our auditors and inspectors to obtain information and documentation, starting the claims process, and negotiating an escrow agreement.”

Patti Miller
Chief Commissioner and Deputy Head, Canadian Grain Commission

Quick facts

ILTA Grain Inc. is licensed to operate primary elevators in Belle Plaine, Saskatchewan and Saskatoon, Saskatchewan and is licensed as a grain dealer.
On July 8, 2019, British Columbia’s Supreme Court placed ILTA Grain Inc. under creditor protection because of its financial difficulties.
On July 11, 2019, the Canadian Grain Commission suspended all licences issued to ILTA Grain Inc.
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.
The Canada Grain Act does not guarantee full payment in the event that a licensed company fails.

Associated links

Contacts

Rémi Gosselin
Head of communications
Canadian Grain Commission
204-983-2749
remi.gosselin@grainscanada.gc.ca