Canadian Grain Commission fully compensates eligible producer claims for unpaid deliveries to Zeghers Seed Inc.

News release

Winnipeg, Manitoba (July 18, 2024) - Producers who were not paid for grain delivered to Zeghers Seed Inc. (operating as Zeghers Canada) will be fully compensated for their eligible claims 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 27 eligible claims for unpaid deliveries to Zeghers Seed Inc. The Canadian Grain Commission will issue compensation totalling over $1.2 million from the company’s security to these producers. Producers will receive 100% compensation for their eligible claims for unpaid deliveries.

The Canadian Grain Commission revoked the licences of Zeghers Seed Inc. on March 25, 2024. The company held a grain dealer licence and a primary elevator licence for an elevator located in Holland, Manitoba.

Quotes

“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 pleased to be able to provide 100% coverage of eligible claims for unpaid deliveries to Zeghers Seed.”

David Hunt

Chief Commissioner, Canadian Grain Commission

Quick facts

  • 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.

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Contacts

Christianne Hacault

Head of communications

Canadian Grain Commission

204-229-0128

christianne.hacault@grainscanada.gc.ca

Canadian Grain Commission

The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada’s grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The Canadian Grain Commission regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.

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