ILTA Grain Inc.
The Canadian Grain Commission has completed its assessment of claims against ILTA Grain Inc.’s security. All eligible producer claims will be compensated for 100% of the amount they are owed.
ILTA Grain Inc. was previously licensed by the Canadian Grain Commission to operate primary elevators in Belle Plaine, Saskatchewan and Saskatoon, Saskatchewan and as a grain dealer. On July 8, 2019 the British Columbia Supreme Court placed ILTA Grain Inc. under creditor protection under the Companies Creditors Arrangement Act. This resulted in ILTA Grain Inc. defaulting on amounts owed to producers for grain deliveries and triggered the company’s security under the Canadian Grain Commission’s Safeguards for Grain Farmers Program.
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 its primary elevators and to carry on business as a grain dealer under specific conditions up to September 30, 2019. Under this order, ILTA Grain Inc. was not allowed to purchase or receive grain from producers but was able to ship its remaining stocks in store as part of its court-supervised restructuring.
In the interest of producers with unpaid deliveries in the stocks in store, the Canadian Grain Commission also negotiated the creation of an escrow account with a value of approximately $3 million. This fund was above and beyond the payables insurance policy already held by ILTA Grain Inc.
2. Did the Canadian Grain Commission compensate producers who were not paid by ILTA Grain Inc.?
The Canadian Grain Commission has completed its assessment of producer claims against ILTA’s security and determined that 222 producers are eligible for compensation under the Safeguards for Grain Farmers Program. These producers have been issued 100% compensation for their unpaid grain deliveries to ILTA Grain Inc. They will be receiving payments totalling $11,146,349.91.
3. What about producers whose claims weren’t eligible?
The ILTA Grain Inc. default represents the largest total security pay out in Canadian Grain Commission history. However, not all producers who made a claim were eligible for payment. Some farmers were owed money for canary seed deliveries, which are not regulated by the Canada Grain Act. Others had amounts outstanding for deliveries made outside the program eligibility period.
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.
4. Why did it take six months for payments to be issued to producers?
Before the payment process could move forward, over 270 individual claims from producers had to be assessed. This is the largest number of claims ever received by the Canadian Grain Commission against a company’s security. After we validated the amounts owing to producers against ILTA Grain Inc.’s records, producers had an opportunity to respond to the Canadian Grain Commission’s preliminary assessment. We then worked with the private insurer holding ILTA Grain Inc.’s policy to have funds released so cheques could be issued to producers.
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.
- News release: Eligible producers receive 100% compensation for unpaid deliveries to 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)
- Date modified: