All but one of 28 farmers will be fully compensated by the Canadian Grain Commission after a Regina-based organic processor went into receivership last year.
The CGC announced April 11 it would pay $162,496 owed to the farmers by FarmGro Organic Foods.
The company carried a $200,000 bond when it was placed in receivership on Dec. 17, 2002.
One claim of $1,850 will not be paid.
“The producer in question missed the 90 day deadline,” said CGC spokesperson Paul Graham. “In other words, he delivered grain to that company more than 90 days before it went into receivership and he hadn’t sought payment within that 90 day coverage period, so he was not covered under the security.”
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Chief commissioner Chris Hamblin said the payments show the benefit of selling grain to licensed and bonded companies.
“While we cannot guarantee full coverage, I’m pleased we were able to provide full compensation in this case,” she said in a release.
Meanwhile, a buyer has not yet been found for the FarmGro plant. It was built southeast of Regina for about $12 million and opened in 2000.
“They are still in find-a-buyer mode,” said Ted Boyle, spokesperson for Crown Investments Corp. of Saskatchewan.
CIC and the Saskatchewan Government Growth Fund are the main creditors.
Bob Balfour, a former chair and founding investor of the facility, said he has been trying to form a partnership to purchase the plant. He said it would still be a viable business and he believes people would invest once the government is no longer involved.
“They haven’t been milling anything since before Christmas,” he said. “It’s very disappointing.”
Clark Sullivan of receiver Sullivan and Associates said he is continuing to look at proposals.
