Farmers owed money by a failed Saskatchewan pulse processor will be
getting 55 cents on the dollar.
Three months after Naber Seed and Grain Co. Ltd. was placed into
receivership by its bank, the Canadian Grain Commission has determined
that the company’s bond falls far short of what farmers are owed.
Commission spokesperson Paul Graham said a few details have yet to be
worked out but it looks like there are between $1.7 million and $1.8
million in eligible farmer claims on Naber’s $1 million bond.
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“We have a shortfall,” he said.
Shaunovan, Sask., farmer Alan Stevenson is one of dozens of unsecured
producers laying claim to that $1 million bond. He is owed $53,261.52
for the laird lentils he delivered to Naber’s plant this spring and is
miffed the agency that is supposed to protect him will only be sending
him a cheque for a little over half that amount.
“It rather pisses me off,” said Stevenson.
“As far as I’m concerned, the commission advertised Naber Seeds as
licensed and bonded and to not come up with it all, they’re simply
reneging on what they advertised.”
Graham said the commission is only able to monitor grain company
liabilities on a monthly basis and based on Naber’s last review the
company’s security was in line with its liabilities.
The only way to ensure farmers get every penny they are owed would be
to have a person auditing the company’s books daily, said Graham.
“It is physically impossible to do that because we lack the resources
and it’s also politically impossible as well.”
The existing monthly liability reviews are not foolproof.
“They don’t show the swings up and down that companies go through from
day one to day 30. It’s a very volatile business,” said Graham.
That’s why the commission repeatedly encourages farmers to protect
themselves by taking payment on delivery or seeking prompt payment if
they don’t walk out of the office with a cheque in hand.
But Stevenson said farmers who delivered grain to Naber sold it with
the confidence they would be fully covered in the event of the
company’s demise.
He said some of the eligible farmers who lost $800,000 may consider
“testing” the laws governing the grain commission. When asked if that
meant a lawsuit he said:”I wouldn’t say that yet, but I kind of can see
it heading that way, yeah.”
Graham points out that the Canada Grain Act was amended in 1994 to say
that the agency cannot be held liable for any shortfall in security.
This is the first time there has been a shortfall since those
amendments were made.
Graham said it will be a few more weeks before farmers like Stevenson
will see any money from the grain commission because the payouts have
to be reviewed by a bonding company.
Farmers deemed ineligible for delivering a product like canaryseed
won’t be getting a cheque at all.
