There won’t be changes any time soon to the Canada Grain Act to protect farmers from unlicensed grain dealers, says the head of the Canadian Grain Commission.
It will be at least six months to one year before the industry will know how the grain commission will help protect farmers.
“We’re in the process of looking at an alternative to the current security approval,” said chief commissioner Barry Senft.
He admits it’s not a quick or easy process.
It took 10 years to develop a voluntary insurance program for the special crops industry that would protect producers against non-payment for special crops delivered to licensed companies.
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The insurance program would have been funded by a checkoff, but the program died when farmers wouldn’t agree to the program.
Now companies have to fulfill a long list of requirements to be licensed, including providing a $150,000 letter of credit. Senft said farmers have told the commission they want some form of security to be provided by grain companies.
The commission will be looking over the next year at existing regulations and considering the demands from producers.
Senft said because grain companies can operate without the grain commission knowing of their existence, the onus is on farmers to check the financial state of a company with which they do business. The grain commission recommends farmers deal only with licensed grain companies.
