There is a good chance the Canadian Grain Commission will expand its producer payment security program to include feed mills.
“The (federal agriculture) minister has suggested he wants us to look at it and producer groups have suggested we should move in that direction, so we’re complying with what government wants and what stakeholders want,” said chief commissioner Elwin Hermanson.
The commission plans to consult with all affected parties to find the best way to incorporate the feed sector into the payment security program.
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“Maybe we’ll look at it and it’s more trouble than it’s worth, and the industry and producers will change their mind after they talk about it,” said Hermanson.
“But my guess is that they’ll want to proceed forward in some manner. It seems like there is some momentum in that direction.”
The momentum comes from angry producers who lost money when hog companies such as Big Sky Farms and Puratone went out of business without paying farmers for the grain they delivered. In the case of Puratone, farmers lost more than $1 million.
The commission is not interested in licensing all 250 feed mills, feedlots and hog barns, such as the small feedlot that occasionally buys grain from a neighbour.
The goal of the industry consultations will be to determine where to draw the line, said Hermanson.
sean.pratt@producer.com
