With ILTA Grain under creditor protection, some canary seed producers are out large sums of money that they are unlikely to recoup. While producers of pulse crops and other grains are covered for all or at least some of their unpaid deliveries through the Canadian Grain Commission’s licencing and bonding program, canary seed is not eligible for this support.
This is not the fault of the Canadian Grain Commission or any past or current government. The issue of producer payment protection for canary seed has been raised with producers in the past, but there was no clear indication that a majority of producers were in favour of proceeding with a request for coverage.
“In light of the situation with ILTA Grain, the board of directors for the Canary Seed Development Commission of Saskatchewan will explore the issue again,” says Lucas Sutherland, chair of the commission and a producer from near Eston.
“Canary Seed producers are being asked to make their views known to the commission. As well, a resolution will be presented to the AGM on January 13, 2020 in Saskatoon so producers can vote on the issue.” Information will be presented on the pros and cons ahead of the vote.
Licencing and bonding is a cost to the companies buying grain and producers in the past have worried about this extra cost resulting in lower prices. As well, no official grading system has existed for canary seed and there have been concerns about how this might change with Canadian Grain Commission involvement. As well, it appeared a couple times that the entire licencing and bonding system would be revamped.
“I’ve heard from canary seed producers owed hundreds of thousands of dollars by ILTA Grain,” notes Kevin Hursh, executive director for the Canary Seed Development Commission of Saskatchewan. “That’s a big hit for any farm.”
Canary Seed producers should watch for more information in the upcoming newsletter and on the website – www.canaryseed.ca
For further information, contact:
Lucas Sutherland
CSDCS chair
306-962-7279
Kevin Hursh
CSDCS executive director
306-222-0238