Eligible producers who were not paid for grain delivered to Pipeline Foods, ULC will be fully compensated through the Canadian Grain Commission’s Safeguards for Grain Farmers Program.
Following a review of individual producer claims, the Canadian Grain Commission determined that there were 49 eligible claims for unpaid deliveries to Pipeline Foods, ULC. The Canadian Grain Commission will issue compensation totalling over $2.2 million from the company’s security to these producers.
Pipeline Foods, LLC from the United States and its subsidiaries, including Pipeline Foods, ULC in Canada, filed for bankruptcy protection in July 2021 and subsequently ceased doing business. Pipeline Foods, ULC had one grain dealer licence and 2 primary elevator licences located at Gull Lake and Wapella, Saskatchewan.
“The Canadian Grain Commission is committed to ensuring producers are fairly compensated for their deliveries. Our Safeguards for Grain Farmers Program plays a key role in securing payments for producers, and we are very pleased to be able to fully compensate eligible producers for unpaid deliveries to Pipeline Foods.”
Chief Commissioner, Canadian Grain Commission
- The Canadian Grain Commission’s Safeguards for Grain Farmers Program regulates grain companies to mitigate the risk of payment failure to producers and to support the grain quality assurance system.
- As a condition of licensing, licensed grain companies are required to tender security for outstanding grain liabilities to producers to the Canadian Grain Commission as a bond, letter of credit, letter of guarantee, or payables insurance. If a licensed company does not meet its payment obligations, the Canadian Grain Commission uses the company’s security to compensate eligible producers.
- If a licensee fails to meet its obligations, producers are eligible for compensation within 90 days from the date of their grain delivery or within 30 days from the date a cash purchase ticket or cheque was issued to them. The lesser of these two time periods applies