Enhancements to Payment Security Need to Protect Farmers

Regina, SK - In the wake of the Canadian Grain Commission's (CGC) revocation of the grain dealer license for Purely Canada Foods Corp., the Agricultural Producers Association of Saskatchewan (APAS) is urging for an immediate review of the CGC's bonding and licensing system to better safeguard producers in the grain industry.

This recent cancellation marks the fourth instance in recent months where grain companies have had their licenses revoked, signaling a troubling trend that requires rapid and resolute responses to protect the interests of hardworking farmers.

"Payment security is the corner stone 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," stated Ian Boxall, President of APAS.

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.

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