Ilta Grain Inc.
The Canadian Grain Commission is taking steps to support producers who have not been paid by Ilta Grain Inc., a licensed grain company that was placed under creditor protection on July 8, 2019.
Producers who delivered grain to Ilta Grain Inc. prior to July 11, 2019, and were not paid, may be eligible for compensation through the Safeguards for Grain Farmers Program. We have begun the claims process and will communicate directly with affected producers as the process unfolds.
Questions and answers
1. What is Ilta Grain Inc.’s licensing status?
Ilta Grain Inc. is no longer licensed effective October 1, 2019.
On August 6, 2019, the Canadian Grain Commission issued Order 2019-52, which allowed Ilta Grain Inc. to operate primary elevators at Belle Plaine and Saskatoon, Saskatchewan, and to carry on business as a grain dealer under specific conditions. This order expired on September 30, 2019.
2. What is the licensing status of the elevator in Belle Plaine, Saskatchewan?
The elevator in Belle Plaine, Saskatchewan, is licenced to Viterra Inc. effective August 27, 2019.
Producers who deliver grain to licensed grain companies have rights that are protected under the Canada Grain Act and Canada Grain Regulations.
3. Will the Canadian Grain Commission compensate producers who have not been paid by Ilta Grain Inc.?
Producers who make eligible claims through the Canadian Grain Commission’s Safeguards for Grain Farmers Program will be compensated. However, we cannot guarantee that producers will be paid the full amount they are owed.
Once we have determined the extent of covered liabilities, and the security provider has reviewed our claims submission and released the funds, we will distribute the available security to eligible producers. If the value of the covered liabilities exceeds available funds, eligible producers will be compensated on a pro-rated basis. In the last 35 years, the Canadian Grain Commission has dealt with 24 company failures and security payments covered 94% of total losses.
4. How much money does the Canadian Grain Commission have to compensate producers?
We hold a $12 million insurance payables policy from a private insurer to compensate producers who have delivered grain to Ilta Grain Inc. and have made eligible claims for payment.
We have also negotiated the creation of an escrow account into which approximately $3 million has been placed that relates to grain deliveries for which no cheques were issued. Producers may be compensated from this account. The fund will be held by PricewaterhouseCoopers, the court-appointed monitor, until it has been determined how the funds will be distributed.
5. How does the Safeguards for Grain Farmers Program protect producers?
The Canadian Grain Commission determines if grain companies must be licensed according to the Canada Grain Act and the Canada Grain Regulations. Licensed primary and process elevators and grain dealers must provide security to the Canadian Grain Commission. This security is used to compensate producers in the event they are not paid for the grain they deliver to the licensed company.
We monitor licensed grain dealers and elevators through regular reporting, audits, and any producer complaints received, with the goal of ensuring licensee security is reflective of financial risk to producers. When a licensee’s information indicates they are experiencing financial difficulties, we place additional focus on that company, with enhanced monitoring and security verification.
6. I have reported non-payment to the Canadian Grain Commission. What are the next steps?
We have sent preliminary claims assessment packages to all the producers who have opened claim files regarding Ilta Grain. If you have not received your package, please contact us immediately.
We are in the process of evaluating eligible claims and determining the extent of liabilities. The security provider must also review our claims submission before payments can be made. Because, over 300 claim files have been opened, and detailed information is required for each claim, we anticipate that the settlement process will take several months to complete. We will communicate directly with claimants as the process unfolds.
For more information on the settlement process, email Licensing and Security.
- Commission Order number 2018-54 (Ilta Grain Inc.)
- Commission Order number 2019-52 (Ilta Grain Inc.)
- News release: Canadian Grain Commission takes unique steps to protect grain producers who delivered to Ilta Grain Inc. (August 7, 2019)
- News release: Ilta Grain Inc.’s licences suspended (July 11, 2019)
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