Your responsibilities as a Canadian Grain Commission licensee

Operational responsibilities

Once your licence is issued, you are required to adhere to various day-to-day operational and reporting responsibilities. These vary depending on the class of licence you hold. Failure to comply with your obligations under the Canada Grain Act and Canada Grain Regulations could lead to the suspension or revocation of your licence.

As a Canadian Grain Commission licensee, you have the following responsibilities:

  • Security and liability
  • Elevator scale verification (terminal, process and primary elevators)
  • Producer verification of weight (primary elevators)
  • Sampling on delivery (primary elevators)
  • Subject to inspector's grade and dockage
  • Receipts for grain received

All licensed elevator operators must:

  • Post the Canadian Grain Commission licence in a conspicuous location in the elevator building
  • Install and maintain equipment and facilities to ensure the efficient and accurate weighing, sampling, inspection, grading, drying and cleaning (excluding primary elevators), and accommodation of all grain received or discharged
  • Store all grain received in an elevator building described in the licence application. An elevator can also store grain on the ground if a written request is submitted to the Canadian Grain Commission, advising the kind of grain to be stored on the ground and the date grain to be stored on the ground is to be received. Upon delivery, an elevator receipt, grain receipt or cash purchase ticket must be issued, and the elevator has the same responsibility for the grain as it has for grain stored in the elevator building.
  • Keep elevator buildings and associated equipment in good repair
  • Keep sampling equipment and surrounding areas clean
  • Provide immediate written notification to the Canadian Grain Commission of the following:
    • Functional alterations to the elevator or to grain flows, sampling, control or any other equipment (within 15 days of plans becoming available)
    • Damage or destruction of any elevator building described in the application
    • Damage, destruction or removal of any equipment required by the Canadian Grain Commission
    • Damage or destruction of grain stored in any elevator building described in the application

Licensees must notify the Canadian Grain Commission before constructing a new elevator or renovating an existing elevator, or if there is a change in the total licensed capacity of an elevator during a licensing year. Total licensed capacity includes principal house, annex, other house, such as bins or twinned elevators, and any condominium storage not already included in the licensed capacity. To report these changes, licensees should choose and complete the following forms:

Security and liability

All Canadian Grain Commission licensees must post security to cover all eligible liabilities pursuant to the Canada Grain Act and Canada Grain Regulations. Security may be tendered in the form of one of the following:

  • Bond, issued by an acceptable bonding company (Treasury Board of Canada Secretariat)
  • Letter of Credit or Guarantee issued by Canadian chartered banks, caisse populaires, Canadian credit unions, provincial governments or provincial government agencies
  • Payables Insurance

For primary and process elevators and grain dealers, security tendered by the licensee covers only producer liabilities. If the licensee refuses or fails to pay producers for grain delivered, they can make a claim against the security to the Canadian Grain Commission to recoup what they are owed. There are time periods within which producers are eligible to make a claim.

Elevator scale verification (terminal, process and primary elevators)

Operators of primary, process and terminal elevators must provide documentation showing that Measurement Canada has approved their weigh scales.

Producer verification of weight (primary elevators)

Operators of primary elevators must allow producers who deliver grain to verify scale weight of grain while it is being weighed.

Sampling on delivery (primary elevators)

Operators of primary elevators must take a sample from each load of grain delivered. A representative sample is then taken from the sample, according to these steps:

  • The subsample weighs at least 1 kilogram
  • The grain producer or the person delivering the grain and the elevator operator agree that the subsample is representative

The subsample may be discarded unless the grain producer or the person delivering the grain requests one of the following:

Subject to inspector's grade and dockage

Operators of primary elevators must follow a provision under the Canada Grain Act called Subject to inspector's grade and dockage. The grain producer or the person delivering the grain has the right to ask for a binding decision from the Canadian Grain Commission if the grain producer or the person delivering the grain disagrees with the grade and dockage determined at a licensed primary elevator. The grain producer is paid according to the Canadian Grain Commission's decision.

Receipts for grain received

Licensees must issue Canadian Grain Commission-authorized documents to the producer upon receipt of grain. If the producer makes a claim against security, the producer must provide one of these documents in order for the claim to be eligible for compensation.

Grain dealers and operators of process elevators must issue one of the following:

  • Grain receipt
  • Cash purchase ticket

Operators of primary elevators must issue one of the following:

  • Combined primary elevator receipt that includes
    • Primary elevator receipt
    • Interim primary elevator receipt
    • Special bin primary elevator receipt
  • Cash purchase ticket