Report liabilities to producers
Licensed grain dealers, process elevators and primary elevators must submit a monthly liability report. In some circumstances, we may let you know that you’re required to complete an interim report. The liability report tells us what your outstanding payments and other obligations for grain to producers are on the last day of each period. Other obligations include grain received for storage at primary elevators, but not purchased, that must be returned to producers on request.
Liability reports are essential to our Safeguards for Grain Farmers Program. We use the information from these reports to establish the amount of security you must provide in order to protect producers, as required by the Canada Grain Act. The Act provides a significant penalty if monthly liability reports are not submitted as required. It is a serious offence to knowingly make a false report.
Sign into your MyCGC account.
As a new licensee, you must include supporting working papers with your liability reports in your first year as a licensee, or until we indicate they’re no longer required. As an existing licensee, you must include working papers when we deem it necessary.
Working papers should include a list of all deliveries in the licensing period in sequential order by:
- receipt number, including deliveries that have been paid for and cleared
- a list of deliveries where the grain has been received but not paid for
- a list of cheques issued that have not yet cleared your bank account
Licensing and Security will provide a template spreadsheet for you to use as your supporting working papers.
Deadline to report
Submit your report by the 15th day of the month following the reporting month. For example, your report of liabilities for the month of June must be submitted by July 15. If the 15th falls on a weekend or holiday, submit your report by the following business day.
Even if you have no liabilities to report, you must send in a signed report with nil (zero) liabilities stated.
Reportable and non-reportable liabilities
|Located in the Eastern Division, Western Division or the US||Delivered into the Western Division||Delivered into the Eastern Division||Delivered into the US|
|Originates from||Reportable (Y or N)||Reportable (Y or N)||Reportable (Y or N)|
|US producer-owned grain||Y||N||N|
|Eastern producer-owned grain||Y||N||N|
|Western producer-owned grain||Y||Y||Y|
|Commercial grain (for example, not producer owned)||N||N||N|
|Non-grain and non-designated grain||N||N||N|
|Located in the Western Division||Delivered into the Western Division||Delivered into the Eastern Division|
|Originates from||Reportable (Y or N)||Reportable (N/A)|
|US producer-owned grain||Y||N/A|
|Eastern producer-owned grain||Y||N/A|
|Western producer-owned grain||Y||N/A|
|Commercial grain (for example, not producer-owned)||N||N/A|
|Non-grain and non-designated grain||N||N/A|
|Producer-owned grain stored at condominium storage at a primary elevator||N||N/A|
After you submit your report
We check and monitor liability reports and will contact you if we have any questions about your report. Retain all working papers for each liability report for verification and/or inspection. Periodic audits are performed to verify the accuracy of your reporting.
For more information on completing your monthly liability report, call our Licensing and Security team.
- Advances in cash or kind made to producers for grain to be delivered at a later date can only be used to offset outstanding receipts when all conditions are met:
- the grain relating to the advance must have been delivered
- the advance cheque must have cleared the bank by the end of the reporting period
- the advance cheque and outstanding receipt must have the same producer and company name; i.e., the advance cannot be applied as an offset for grain delivered by another producer
- When the advance amount paid to a producer, which has already cleared the bank, exceeds the liability amount owed for their grain deliveries, no liability amount is to be reported
- The advance cheque amount can be applied as an offset to nil only on a producer-by-producer basis
- A negative amount cannot be recorded and then applied as an offset against other outstanding receipts of the same producer/company name
Condominium (condo) storage: Refers to space that a producer may own or lease within a licensed primary elevator. More information is available in our condominium storage policy.
Deferred cheque: A post-dated cheque that you may choose to issue to a producer if the producer requests it.
Delivered: Having supplied or provided grain to locations including but not limited to:
- an elevator
- an agent’s facility
- a railway car
- picked up at producer’s farm
Eastern Division: All of Canada not included in the Western Division.
Eastern grain: Grain, other than imported grain, that is delivered into the Eastern Division.
Grain: Any seed designated by regulation as a grain for the purposes of the Canada Grain Act.
Imported grain: Grain grown outside of Canada or the United States and includes screenings from such a grain and every grain product manufactured or processed from such a grain.
Levies: An amount deducted by the licensee on payment for grain delivered, which is forwarded to the applicable levy organization.
Western Division: All of Canada lying west of the meridian passing through the eastern boundary of the City of Thunder Bay, including the whole of the Province of Manitoba.
Western grain: Grain, other than imported grain, that is delivered into the Western Division.
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