Pulse industry insiders are advising farmers to be careful when
choosing where to deliver their crops this year.
The recent bankruptcy of Winnipeg broker Agritrans Logistics Ltd.
drives home that warning.
The company filed for bankruptcy March 21, leaving behind a list of 37
unsecured creditors and one secured creditor. There is a $1 million
deficiency between what the company owes and its assets.
Saskatchewan Pulse Growers chair Glenn Annand said producers should do
the proper checks to minimize risks when dealing with pulse processing
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facilities, such as determining whether the company is licensed by the
Canadian Grain Commission.
“There’s a lot of things that they can do to protect themselves. They
better do that if they’re dealing with somebody that they’re not
comfortable with,” said Annand.
The Canadian Grain Commission says the onus is on the farmer to know
which companies are licensed. Even then there is no guarantee the
grower will be covered for 100 percent of what he is owed.
Producers should ensure they get the proper documents, including cash
purchase tickets, primary elevator receipts, grain receipts, special
bin primary elevator receipts, interim primary elevator receipts,
drying and cleaning receipts. Scale tickets do not support claims
against security.
They must also meet the deadline for claims if a company fails to pay
them. Growers are protected for 90 calendar days from the date of
delivering grain to a licensee. When a company refuses or fails to pay
a grower, the producer must notify the grain commission within 30
calendar days or else the claim will be invalid.
Shaunavon, Sask., seed grower Gerald Girodat reiterates Annand’s
warning that growers should be careful especially when dealing with
unfamiliar companies.
“In the zeal for some communities to have plants, maybe guys might
think ‘we’ll do anything to support the plant.’ But they better use
good business sense and make sure that the protection is there if
something does go wrong.”
