WINNIPEG, MANITOBA, CANADA — Eligible producers who were not paid for grain delivered to ILTA Grain Inc. will be fully compensated through the Canadian Grain Commission’s (CGC) Safeguards for Grain Farmers Program. Payments have been issued and will be delivered in the coming days.

ILTA Grain Inc. was put under creditor protection in July 2019, resulting in the company defaulting on amounts owed to grain farmers for unpaid deliveries. The CGC subsequently assessed 271 individual claims from producers, the largest number ever received against a company's security.

“The Canadian Grain Commission is committed to ensuring Canadian grain producers are fairly compensated for their deliveries,” said Patti Miller, chief commissioner and deputy head, CGC. “The ILTA Grain Inc. situation has been a difficult one for everyone involved, and we are very pleased to be able to deliver over C$11 million in payments to producers who were owed money.”

Following a review of individual producer claims, the CGC determined that 222 were eligible for over C$11 million in compensation. These claims are fully covered by the security posted by ILTA Grain Inc. under the terms of its licenses.

The CGC’s Safeguards for Grain Farmers Program regulates grain companies to mitigate the risk of payment failure to producers and to support the grain quality assurances system. As a condition of licensing, licensed grain companies are required to tender security for outstanding grain liabilities to the CGC as a bond, letter of credit, letter of guarantee, cash deposit, trust account or payables insurance. If a licensed company does not meet its payment obligations, the CGC uses the company’s security to compensate eligible producers.