News Articles

August 14, 2008
Winnipeg Free Press

Farmers paid after grain company folds

FARMERS who unwittingly sold grain to an insolvent western Manitoba grain company will be compensated under provisions of the Canada Grain Act, a federal regulator said Wednesday.

The Canadian Grain Commission said in a statement that it cancelled Alexander Grain Inc.'s primary elevator licence on Feb. 5 after the company advised it that it was going out of business.

The commission used the $150,000 security posted by Alexander Grain, based in Alexander, to compensate eligible producers who were not paid for delivered grain during the 90 days prior to the company going out of business.

Of the 15 farmers who submitted claims against the Alexander Grain security, 14 are eligible for compensation totalling $129,214.96.
Thirteen of these claims are eligible for 100 per cent compensation totalling $117,200.32.

One of the claims is eligible for 85 per cent compensation because some of the grain delivered to the company occurred outside the 90-day window as set out in the act.

Another claim was for interest and a price adjustment only, which are not eligible.

All eligible producers have been notified of their compensation, and cheques will be mailed shortly, the commission said.

"It is unfortunate when a member of the grain industry encounters difficulties like this," said Elwin Hermanson, the grain commission's chief commissioner. "I am glad to report that in this situation, all eligible claims were fully covered, but that is not always the case."

© Winnipeg Free Press

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