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Canadian Grain Commission concludes Payment Protection Program review for Newco Grain Ltd.

WINNIPEG, Nov. 23, 2012 /CNW/ - Producers who did not receive payment for grain sold to Newco Grain Ltd. have received compensation for their eligible claims through the Canadian Grain Commission's Payment Protection Program.

Newco Grain Ltd. was a licensed grain dealer located in Coaldale, Alberta, until May 11, 2012.

"When a licensed company is unable to pay producers, we work to ensure producers receive compensation," said Elwin Hermanson, Chief Commissioner of the Canadian Grain Commission. "While we license primary, process, terminal and transfer elevators and grain dealers, we do not license companies such as feed lots. Deliveries made to unlicensed companies are not covered by our Payment Protection Program."

Rules for compensation

The Canadian Grain Commission reminds producers that they must follow and meet certain rules for compensation under the Payment Protection Program. Producers are only covered by a licensed company's security for 90 days from the date they delivered their grain, or 30 days from the date they received a cash purchase ticket.

Compensation of 100% can not be guaranteed, and in the case of Newco Grain Ltd., eligible producers only received 95% of the amount they were owed.

About the Canadian Grain Commission

The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada's grain quality standards. Its programs result in shipments of grain that consistently meet specifications for quality, safety and quantity. The Canadian Grain Commission regulates the grain industry to protect producers' rights and ensure the integrity of grain transactions.

Related information


SOURCE Canadian Grain Commission

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