Eligible Producers To be Fully Paid

If you delivered grain to ILTA Grain Inc out in Belle Plaine, were not paid and are eligible you can be relieved as the cheque is in the mail.

Eligible producers who were not paid for grain delivered to ILTA Grain Inc. will be fully compensated through the Canadian Grain Commission’s Safeguards for Grain Farmers Program. Payments have been issued and will be delivered in the coming days.

ILTA Grain Inc. was previously licensed by the Canadian Grain Commission to operate primary elevators in Belle Plaine and Saskatoon, Saskatchewan and as a grain dealer. 

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’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, 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.

In order to be eligible 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.

The Canadian Grain Commission recommends that producers limit their risk of financial loss by requesting payment for each load at time of delivery. Producers who are experiencing delays in being paid should contact the Canadian Grain Commission immediately.