Government officials in Alberta and Saskatchewan are warning farmers to be careful when dealing with a Saskatchewan company that is offering cut-rate prices on farm fertilizer, fuel and chemicals.
The consumer protection branch of Saskatchewan Justice has issued two consumer protection alerts against Agricultural Services Canada, also known as AgServe. It warns farmers to be careful before buying a membership in the Saskatoon company, which promises major savings.
“You buy a membership into what? My concern is that you’re buying a membership into a company that I’m concerned cannot provide the supplies it says it can,” said Larry Wilson, deputy registrar of the consumer protection branch.
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In its telephone pitch, the company says it can offer farmers up to 20 cents per litre in fuel savings or will deliver fertilizer to farmers for thousands of dollars less than they can buy locally.
Wilson said at least one of the suppliers mentioned in the telephone sales calls, Agrium, says it does not have an agreement with Agricultural Services Canada to provide such products.
In its second alert, the consumer protection branch said it is concerned about the involvement of Curtis Malinowski in the company. Malinowski pleaded guilty in Court of Queen’s Bench in Saskatoon last year to a global charge of fraud involving 15 complainants and $350,000 in a pre-fabricated housing scam.
Michael Lawrence, executive director of procurement with Agriculture Services Canada, said he is not concerned about the connection between the company and Malinowski.
He said Malinowski is a consultant who works for a company contracted to provide services to AgServe and does not have a direct connection to AgServe itself.
When farmers are contacted, they are asked to buy a one-year $500 membership or a three-year $1,200 membership and are told they will save up to 20 percent on their input costs by using the combined buying strength of the members.
Amanda Gibler, executive administrator with Agricultural Services Canada, said membership could significantly reduce the amount farmers pay for inputs.
“We can get them that for bulk prices. You have to become a member first. Once you’re a member, any input costs you need for your farm you can order through us.”
Gibler said she didn’t know what price the company will offer farmers for fuel and fertilizer.
She said once a farmer buys a membership, Agriculture Services Canada will find a local dealer who will supply the inputs for the lower price.
“What we would do is, when it’s ordered, we would go around getting you the best price. We go overseas and stuff as well.”
Gibler said governments have issued their consumer protection alerts because of the low fuel prices AgServe says it will offer to farmers.
“The only reason they had done that is because of our fuel program. We’re offering good fuel prices right now. I guess they feel threatened by that.”
Wilson said the consumer protection branch has asked the company to stop its telephone solicitations until it is licensed. In Saskatchewan, companies must be licensed and bonded before making sales calls. The company has also not provided a list of companies with which it has agreements to provide products.
The company has also been asked to change its name to one that doesn’t sound like a government agency.
