If you produce grain, you’re an important part of Canada’s economy. To ensure you and other grain farmers can continue producing, the government established the Canadian Grain Commission. This department is a valuable resource for your business, especially when it comes to managing risk.
What Is the Canadian Grain Commission?
As a grain producer, you probably negotiate with a wide variety of people, including customers, transporters, and elevator assessors. That’s why the government created the Canadian Grain Commission — to act on your behalf and make sure you get fair treatment under the Canada Grain Act. There are plenty of risks involved in grain farming, from unfair grain grading to unpaid invoices. The Commission’s job is to help you manage these risks and understand your rights.
Risk Management for Grain Farmers
If you’re a grain farmer, the Commission has many programs you can take advantage of. Each one is geared toward helping you solve common problems in the industry so you can minimize risk and stay in business.
Delivery and Payment: If you deliver a shipment of grain but the customer refuses to pay, the Commission can help you collect your fee. These services apply only to the Canada Grain Act’s regulated grains. The Commission also provides resources to help you identify licensed primary elevators, process elevators, terminal elevators, and grain dealers, so it’s easier to find partners you can trust. Want to be a great supplier? Check out the Commission’s requirements for grain condition.
Grain Grade Disputes: When you deliver grain to a primary elevator, the operator takes a sample of your product. Then they assess the grade and dockage. If you don’t agree with the grade assessment, the Commission can help you dispute it. All you have to do is send a sample to the Commission and ask for an inspector to assess it. If the inspector finds a different grade and dockage, the elevator must pay you accordingly.
Harvest Sample Program: Do you want an idea of your grain grade before you start selling? The Harvest Sample Program lets you get a free grade. Although this assessment is unofficial, it can help you identify a fair price and spot unfair grading. That way, it’s easier to find trustworthy elevators.
Applying for a Producer Railway Car: If you don’t want to use a licensed grain handler to ship your product, the Commission lets you apply for a producer railway car. If you qualify, you can ship grain directly and manage your own car. You can apply online to the Commission or work with an administrator if you want assistance.
How to Make a Payment Claim
If you encounter an elevator or dealer that can’t pay or refuses to pay after you deliver grain, you can make a claim with the Commission. You can also make a claim if a cheque bounces. The process is easy — all you need to do is call or email the Commission. They send you a payment claim form in the mail, which you can fill out and submit with your receipts, purchase tickets, and cheques. An official follows up on your claim and helps you get paid. Keep in mind that you can only make claims for licensed companies, so it’s a good idea to check the status of each partner before you make a delivery.
The grain business can be risky, but with the Canadian Grain Commission, you can operate with more security. With the Commission’s payment claims and other business resources, it’s easier to be a productive, profitable grain farmer in Canada.