Safeguards for Grain Farmers Program frequently asked questions
Are you a producer or licensee interested in participating in an interview as part of our program evaluation of our licensing and payment protection program?
To participate please contact Karla Petri, Program Evaluator, at karla.petri@grainscanada.gc.ca. We hope to complete most interviews during December 2024. Each interview should take approximately 30 minutes to complete. The evaluation interviews aim to collect your views and opinions on the current program. Any feedback you provide will be protected by the Privacy Act and used for research purposes only.
Payment protection
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1. If my contract is for multiple grain deliveries, how long am I eligible for compensation through the Safeguards for Grain Farmers Program?
Each grain delivery will have its own eligibility window. You have 90 days from the date of each delivery to make a claim unless you receive a cash purchase ticket or cheque. If you’ve received a cash purchase ticket or cheque, you’re eligible for 30 days from the date it was issued.
Example
- You have a contract for multiple grain deliveries. You delivered grain on September 1, October 1, and November 1
- If you did not receive a cash purchase ticket or cheque, each delivery is eligible for compensation for 90 days from the date of delivery
- September 1 delivery is eligible until November 30; October 1 delivery is eligible until December 30; November 1 delivery is eligible until January 30
- If you received a cheque on December 16:
- Your delivery on September 1 is not eligible for payment protection, because more than 90 days have passed
- Your delivery on October 1 is eligible until December 30, because 90 days from the day of the delivery is less than 30 days from the date the cheque was issued
- Your delivery on November 1 is eligible until January 15, 30 days after the licensee issued and delivered the cheque
Learn more about compensation eligibility periods.
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2. If I defer my payment for my grain delivery, or if I’m issued a post-dated cheque, how long am I eligible for compensation?
There may be some potential benefits, such as tax savings, associated with deferred payments. However, when you accept a deferred payment that falls outside of program eligibility periods, you are also opting out of payment protection offered through the Canadian Grain Commission.
For your claim to be eligible, you must report non-payment to the Canadian Grain Commission within
- 90 days from the date of your grain delivery; or
- 30 days from the date you are issued a cash purchase ticket or cheque, regardless of the date on it
The lesser of these two time periods applies.
Example 1
- Sarah delivered grain on December 1 and received a combined primary elevator receipt
- On December 16 (day 15), the company issued and delivered Sarah a cheque that was postdated to January 20 (day 50)
- Sarah is only eligible for compensation until January 15, 30 days after the licensee issued and delivered the cheque
Example 2
- Tom delivered grain on October 1 and received a combined primary elevator receipt and a cheque post-dated to day 25 (October 26)
- Tom is eligible for compensation under the Safeguards for Grain Farmers Program until day 30 (October 31), 30 days after receiving the post-dated cheque.
Learn more about compensation eligibility periods.
Contracts and waivers
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3. Will the Canadian Grain Commission review my grain delivery contract before I sign it?
The Canadian Grain Commission has very limited authority on grain delivery contracts and does not review or provide advice on contracts between producers and grain companies. We recommend consulting with your lawyer if you have any questions about your contract.
The Government of Saskatchewan has a grain contracts resource available for producers that can help provide more general information.
If you think your grain contract is in conflict with the Canada Grain Act or Canada Grain Regulations, please contact us.
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4. I didn’t sign the contract the grain company gave me. Am I still bound by it?
It depends. Contracts may contain a clause that says the contract is binding if unsigned. You should always read your contract carefully and consult your lawyer if you have any questions.
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5. What are the implications of signing the waiver on my combined primary elevator receipt?
Under subsection 67(1) of the Canada Grain Act, licensees have an obligation to deliver the identical grain or grain of the same kind, grade and quantity on request of a holder of a combined primary elevator receipt. However, if you have signed the waiver on your combined primary elevator receipt, there is no obligation for the licensed company to return grain of the same grade (or better) to you if requested. The licensed company is still obligated to settle for the amount owed to you.
In the event of a licensee failure, you are not entitled to the return of grain of the same grade (or better) if you signed the waiver.
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6. Is there anything I can do about a buy-out clause if my contract with a grain company is already binding?
The Canadian Grain Commission has very limited authority on grain delivery contracts and is not in a position to provide advice on individual contracts. We recommend consulting with your lawyer if you have any questions on buy-out clauses or other contract provisions.
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7. What can I do if a licensed company doesn’t accept my grain delivery during the agreed upon delivery period?
There should be a penalty clause provision in your contract stating that, in the event of delivery of grain indicated in the contract is not accepted by the licensee during the delivery period, a penalty is to be paid by the licensee to the producer. This clause is a requirement under the Canada Grain Regulations.
You should always read your contract carefully and consult your lawyer if you have any questions.
Rights at delivery
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8. What documentation should I receive when I deliver grain to a licensed primary elevator?
After grain is unloaded, the elevator operator should give you a combined primary elevator receipt or, if they purchase the grain immediately, they should give you cash purchase ticket(s), cheque(s) or electronic payment (for example, an e-transfer).
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9. What documentation should I receive when I deliver grain to a licensed process elevator or grain dealer?
After grain is unloaded, the process elevator operator or grain dealer should give you a grain receipt or, if they purchase the grain immediately, they should give you cash purchase ticket(s), cheque(s) or electronic payment (for example, an e-transfer).
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10. What information should be included in the primary elevator receipt or grain receipt?
The documentation you receive from a licensed primary elevator, process elevator or grain dealer should show the:
- grain
- grade
- weight
- date of delivery
There are examples of grain receipts and cash purchase tickets included in the Canada Grain Regulations. Grain companies must issue documents that include the same information.
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11. What do I do if I’m having trouble getting paid or have a disagreement with the licensed primary elevator about the grade, dockage, protein or moisture assessed for my grain delivery?
If you (or someone delivering grain on your behalf) disagree with a licensed primary elevator’s assessment of your grain’s quality, you have the right to dispute the assessment by asking for a Final Quality Determination. You can do so by asking that a representative sample of your grain be sent to the Canadian Grain Commission.
If you have any questions about your eligibility for compensation or about your rights when you deliver grain to a grain company, contact us immediately. Learn more about the Safeguards for Grain Farmers Program.
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12. Does a company have to declare bankruptcy before the Canadian Grain Commission can help producers get paid?
No. If at any point you are having trouble getting paid promptly or getting the proper grade, dockage or tonnage for your grain delivery, contact the Canadian Grain Commission.
Failure to pay by a licensed grain company could involve any of the following problems:
- the company asks you to delay cashing its cheque outside of the payment timeline stipulated in the contract
- the company refuses to give you a cheque
- the company’s cheque bounces
- the company delays issuing a cheque past the date indicated in the contract by which you should have been paid
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13. Are licensed grain companies allowed to lower my grain’s official grade because of non-grading factors like Falling Number?
No. A licensed grain company cannot lower your grain’s official grade because of non-grading factors. However, they can include a clause in their contracts that states that grain has to meet certain quality requirements, which can include non-grading factors. Not meeting those requirements may result in discounts.
You should always read your contract carefully and consult your lawyer if you have any questions.
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