Something that farmers, especially those who have experienced the loss when a certain feedmill or any other entity takes their grain in good faith, often in times when that feedmill is in dire straits for getting feeding to their livestock customers, may well be happening.
Recently, the Canadian Grain Commission began consultations on its proposal to licence feed mills in western Canada and to extend payment protection to grain producers who sell grain to feed mills.
Organizations like Keystone Agricultural Producers, the Manitoba Pork Council and others have long called for this to happen, but most often couldn’t find the vehicle nor the funds to make it happen.
Dan Mazier, KAP president says for them on the national stage, the producer payment security issue is still a huge issue, the one when farmers deal with a specific grain company, delivering their grain based on getting a cheque for it.
Getting that cheque has not always happened, and often it leaves a few farmers hurting badly financially, but on the bigger scheme of things it is mostly a drop in the bucket.
“It is good to see the Canadian Grain Commission is getting really serious about this fund-based mechanism to have producer payment security,” said Mazier. “Whether we include feed mills and how this transitions forward is still out there.”
That is why the Canadian Grain Commission is seeking input from feed mills, grain producers, producer groups, current licensees, and industry stakeholders on its proposal to license feed mills and to assist in the development of licensing requirements for feed mills.
It will be interesting what will come out of the assessment because the intent is to assess the feed mill industry in western Canada. The CGC will then use the information collected when determining a threshold for licensing commercial feed mills. .
It is a process that farmers and industry people alike must not take lightly for this to work for everyone concerned. There will be smaller mom and pop type feedmills that may not want licensing for whatever reason, and then there are those who will want strict to the letter of the law certification.
In cases like this, a brand new venue, the danger is more often overkill than underkill and often leads to a layer of regulations and things those who want certification to follow.
The relevant information, including a description of the issue and a full description of the proposal, are available on the Canadian Grain Commission’s web site,
Information is also provided on the web site on how stakeholders can comment on the proposal. Stakeholders have until April 9, 2015 to submit input.
Some quick facts regarding this matter.
The CGC says as part of its licensing and producer payment protection programs, the Canadian Grain Commission issues licenses for primary, terminal and process elevators, as well as grain dealers.
· Feed mills are currently exempted from licensing in the Canada Grain Regulations. Should feed mills be licensed, they could be subject to some of the same requirements as process elevators.
· A feed mill is an operation where a process or a combination of processes is used to produce or manufacture feed for livestock or poultry consumption.
· Feed mills who could be subject to licensing include on-farm feed mills or commercial feed mills who purchase grain from producers, to be used either on farm, sold to a livestock operation, or for resale.
· These operations would be licensed and would be required to provide security as a condition of licensing. Payment protection would only apply to eligible deliveries for the 20 grains defined in the Canada Grain Regulations.
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. It regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.  •
— By Harry Siemens