After six years of courtroom battles, Manitoba lentil growers who took on the federal and provincial governments are sending their case to pasture.
The governments agreed to pay $140,000 interest to about 240 farmers on Gross Revenue Insurance Plan payments for their 1992 crop.
“It was a frustrating journey,” said Alan Armstrong, a Cardale, Man., producer who led the Concerned Growers group that filed the claims.
“It feels good that for once, the little guys have won.”
The saga started when more than 900 farmers planted a record 155,000 acres of lentils in response to attractive GRIP coverage levels.
Read Also
Interest in biological crop inputs continues to grow
It was only a few years ago that interest in alternative methods such as biologicals to boost a crop’s nutrient…
After the contract deadline, the government lowered the coverage to 58 percent from 70 percent.
The farmers successfully sued for breach of contract, and won again when the government appealed.
How to pay
The Manitoba Crop Insurance Corp. sent $5.6 million to the farmers in January 1995. About 240 farmers filed a lawsuit for interest on the late payments. They were awarded interest in January 1997, but the government appealed twice over how the interest would be paid.
Finally, the government agreed to settle with the farmers for $140,000, or six percent interest on their payments.
Armstrong said growers stuck with the case on principle: “The concept of how we do business today is … if you have an overdue account, or monies are delayed or wrongfully withheld, you pay interest.”
The farmers spent about $200,000 of their own money on the six-year battle. Armstrong said he feels it was worth it.
“A contract is a contract and it must be honored.”
After the challenge, governments paid closer attention to contract changes and how they affected farmers, he said.
“It sets a precedent, I think, that they have to pay attention.”
