Types of unlicensed grain companies
Most grain companies that deal in or handle grain grown in western Canada must be licensed by the Canadian Grain Commission. However, not all businesses that deal in grain are licensed.
Grain companies may not be licensed by the Canadian Grain Commission if they meet certain requirements. These requirements protect the interests of grain producers and maintain Canada’s grain quality assurance system.
There are three main reasons a grain company may not be licensed:
- The company is exempted by an order from the Canadian Grain Commission
- The type of company is exempted by regulation (section 15 in the Canada Grain Regulations)
- The type of company falls outside the jurisdiction of the Canada Grain Act
The Canadian Grain Commission grants licensing exemptions after an assessment of a company’s operations to ensure an exemption is appropriate.
If a company’s operations changes, such as a change in how or where grain is purchased, their operations would need to be reassessed.
| Type of company | Reason for exemption |
|---|---|
| Elevators that ship only producer railway cars | Exempt by order from the Commission |
| Agents who act solely on behalf of Canadian Grain Commission-licensed companies | Exempt by regulation |
| Seed cleaning plants that do not purchase grain from producers | Exempt by regulation |
| Grain dealers that purchase only seed from producers | Exempt by regulation |
| Elevators operated by non-profit organizations | Exempt by order from the Commission |
| Feed mills | Exempt by regulation |
| Distilleries | Exempt by regulation |
| Bulk handling facilities at port locations with no storage | Exempt by order from the Commission |
| Feed lots | Exempt by regulation or by order |
| Hog barns | Exempt by regulation or by order |
| Standard farming operations who exclusively market their own grain products | Falls outside of the jurisdiction of the Canada Grain Act |
| Eastern grain elevators (except those operating on the Great Lakes-St. Lawrence Seaway system) | Falls outside of the jurisdiction of the Canada Grain Act |
| Dealers who exclusively buy and sell grain produced in eastern Canada | Falls outside of the jurisdiction of the Canada Grain Act |
Grain companies in violation of the Canada Grain Act
Grain companies operating without a licence may be in violation of the Canada Grain Act. The Canadian Grain Commission may not be aware of their operations or may be in the process of licensing them. If you are aware of a company operating without a licence or have questions about the licensing status of a grain company, contact our Licensing team.
Contact us
- For more information about grain company licences and exemptions, contact Licensing.