The Canadian Grain Commission is conducting a financial audit on a grain buyer from Melfort, Sask., and will soon launch a claims process for growers owed money by the company.
“Naber Specialty Grain needs to provide us with a number of documents before we can begin our payment process,” said commission spokesperson Remi Gosselin.
“We’re not sure at this point how long it will take for Naber Specialty Grain to provide us with these documents.”
Once the documents are in place, the commission will ask producers who are owed money to file a formal claim, including documentation they received at the time of delivery.
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Gosselin said it is not yet known whether the security filed with the commission will be enough to cover the eligible claims.
“If security is not adequate, then proceeds will be distributed on a pro-rated basis,” he said.
To the best of the commission’s knowledge, Naber is not in receivership.
Todd Naber, owner of Naber Specialty Grain, was contacted for this story but did not respond in time for The Western Producer’s deadlines.
A farmer owed money by Naber, who requested anonymity while the claims process is sorted out, said it has been a long and intensely frustrating process.
The grower sold flax to the Melfort company in April and has not received payment for what is a “very large sum of money.”
“We’ve got payments to make. Where are we supposed to get this money from now?” she said.
The couple has spraying and diesel fuel bills to pay.
“I don’t know what we’re going to do,” she said.
“It is very frustrating because it is our money. He sold that grain. Where is that money?”
In hindsight, there were a number of red flags in their dealings with Naber.
“He was very eager to come and get the grain, very eager.”
Naber also offered $14 per bushel for their flax, which was about $2 per bu. higher than the going rate at other elevators.
Naber was a principal in Naber Seed & Grain Co. Ltd., also of Melfort, which was placed into receivership in June 2002. Gosselin believes Naber’s parents owned the company.
Naber Seed did not have a big enough bond in place with the grain commission to fully compensate growers.
Growers received 51 cents on the dollar for the grain they delivered, leaving 112 farmers with $960,000 in unpaid deliveries, one of the biggest shortfalls in the commission’s history.
The farmer who sold her flax to Naber said she was unaware of that previous business failure.
“We sure as heck wouldn’t have sold to him if we knew that,” she said.
She can’t understand why the commission would provide a licence to somebody associated with a previous business failure, in which farmers lost almost $1 million.
The commission took away Naber’s licence on May 9 after the company failed to meet some of the commission’s licensing requirements.
“In this case, as well, producers have come forward to the CGC to say they have not been paid for their deliveries, so this would trigger our audit process and our claims process,” said Gosselin.
Producers who delivered grain after May 9 will not be eligible for payment.
Anybody who delivered grain that is not an official grain of Canada will not be covered.
The only mainstream grain not covered is canaryseed, but that crop made up a sizeable portion of Naber’s business, according to the Canaryseed Development Commission.
Farmers who waited longer than 90 days to exchange their elevator grain receipt for a cash purchase ticket or cheque are not covered.
Producers who received a cash purchase ticket or cheque are covered for 30 days from the date it was issued or until 90 days from the date of grain delivery, whichever is less.
sean.pratt@producer.com
