Fourteen Manitoba farmers will receive compensation totalling $129,214.96 for losses associated with the demise of Alexander Grain earlier this year.
The Canadian Grain Commission lifted the company’s primary elevator licence Feb. 5 after it told the agency it was going out of business.
The commission used the firm’s $150,000 security bond to compensate farmers who had delivered to the 6,000-tonne facility in Alexander, Man., near Brandon during the 90 days before its closure.
Fifteen producers submitted claims. Of that total, 13 were eligible for 100 percent compensation, totalling $117,200.32. One was eligible for 85 percent because some of the grain was delivered outside the 90-day coverage window, while another claim, for interest and a price adjustment, was ruled ineligible.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
The Alexander elevator was recently purchased by Mission Terminal, a Winnipeg company that operates export facilities in Thunder Bay and Trois-Rivieres, Que., and is a major shipper of producer cars.
CGC chief commissioner Elwin Hermanson said it was good news that the security was sufficient to pay all eligible claims, but he cautioned there is no guarantee of full payment under CGC security rules.
Producers are covered for the lesser of 30 days from the issuance of settlement or 90 days from the date of delivery. In the event of non-payment, producers must advise the CGC within 30 days of becoming aware of the situation.
They are not eligible for compensation if they wait longer than 90 days to be paid or fail to notify the CGC within 30 days.
