Canadian Grain Commission concludes Payment Protection Program review for Newco Grain Ltd.

WINNIPEG, Nov. 23, 2012 /CNW/ – Producers who did not receive payment
for grain sold to Newco Grain Ltd. have received compensation for their
eligible claims through the Canadian Grain Commission’s Payment
Protection Program.

Newco Grain Ltd. was a licensed grain dealer located in Coaldale,
Alberta, until May 11, 2012.

“When a licensed company is unable to pay producers, we work to ensure
producers receive compensation,” said Elwin Hermanson, Chief
Commissioner of the Canadian Grain Commission. “While we license
primary, process, terminal and transfer elevators and grain dealers, we
do not license companies such as feed lots. Deliveries made to
unlicensed companies are not covered by our Payment Protection
Program.”

Rules for compensation

The Canadian Grain Commission reminds producers that they must follow
and meet certain rules for compensation under the Payment Protection
Program. Producers are only covered by a licensed company’s security
for 90 days from the date they delivered their grain, or 30 days from
the date they received a cash purchase ticket.

Compensation of 100% can not be guaranteed, and in the case of Newco
Grain Ltd., eligible producers only received 95% of the amount they
were owed.

About the 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
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.

Related information

        --  Licensed companies
        --  Financial protection for grain deliveries

SOURCE Canadian Grain Commission