Farmers who delivered grain to a bankrupt grain company at Melfort, Sask., and made claims through the Canadian Grain Commission’s payment protection program will receive about 14 cents on every dollar they were owed.
Naber Specialty Grain Ltd., was placed in receivership in June, 2015. The company owed money to farmers who delivered grain, but did not receive full payment.
Under the grain commission’s producer payment program, 26 producers made claims against Naber worth $1.055 million.
Naber was licensed by the CGC but the security it posted was worth only $150,000, less than the amount it owed.
“In June 2016, producers were invited to make claims against the $150,000 security posted by Naber Specialty Grains Ltd,” the grain commission stated in an Aug. 29 news release.
“The 26 eligible producers made claims totalling $1,055,927.”
“Unfortunately, payments for claims made against the security posted cover only 14.2 percent of these claims.”
The case has been referred to the RCMP.
In recent years, the CGC has been investigating the merits of a new insurance-based program but it remains to be seen whether such a program will be introduced.
