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 exempted from licensing
Grain companies are exempted from licensing 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.
The Canadian Grain Commission grants licensing exemptions if one or both of the following conditions apply:
- grain is not purchased directly from western grain producers
- licensing a company or a class of companies is not required to maintain the quality, safe-keeping and efficient handling of Canadian grain
Licensing exemptions may be conditional. A common condition is that the company must not purchase grain directly from producers. If that condition is not met, the company could be required to become licensed.
|Type of company||Reason for exemption|
|Elevators that ship only producer railway cars||They do not buy grain from western producers.|
|Agents who act solely on behalf of Canadian Grain Commission-licensed companies||They do not buy grain from western producers. Producers are protected by the security posted by licensees.|
|Seed cleaning plants that do not purchase grain from producers||They clean grain and return it to producers. They do not buy grain from western producers.|
|Seed dealers that purchase only seed from producers||Seed quality assurance is governed by the Seeds Act, which is administered by the Canadian Food Inspection Agency.|
|Elevators operated by non-profit organizations||Licensing is not required to maintain the quality, safe-keeping, and orderly and efficient handling of Canadian grain.|
|Feed mills||Licensing is not required to maintain the quality, safe-keeping, and orderly and efficient handling of Canadian grain.|
|Distilleries||Licensing is not required as long as these facilities do not buy grain from producers.|
|Bulk handling facilities at port locations with no storage||Licensing is not required to maintain the quality, safe-keeping, and orderly and efficient handling of Canadian grain.|
|Container loading facilities located at ports|
Grain companies outside the jurisdiction of the Canada Grain Act
Certain types of grain companies are outside the jurisdiction of the Canada Grain Act. These companies don’t need to be licensed by the Canadian Grain Commission nor do they need to be exempted.
Companies that do not need to be licensed include:
- feed lots
- hog barns
- standard farming operations who exclusively market their own grain products
- eastern grain elevators (except those operating on the Great Lakes-St. Lawrence Seaway system)
- dealers who exclusively buy and sell grain produced in eastern Canada
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 the Canadian Grain Commission.
- For more information about grain company licences and exemptions, contact Licensing and Security.
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