Producer Car Loading Facilities

How are producer car loading facilities exempted from licensing provisions under the Canada Grain Act?

Under the Canada Grain Act, elevators and grain dealers must be licensed by the Canadian Grain Commission (CGC) and post security to cover their liabilities to grain producers. The CGC exempts producer car loading facilities from licensing provisions under the Act, provided the facility meets conditions designed to protect producers and uphold the quality assurance system. The conditions are:

• The facility only handles grain on behalf of producers which is intended for loading into producer cars.
• The facility posts a notice advising producers that it is not licensed under the Act and that the CGC will not be involved in disputes between the facility and the producer except when they arise at the port location.
• The facility does not purchase or sell grain.
• The facility allows the CGC access to its records.

How does a facility apply for an exemption?

The operator of the facility should contact the CGC's licensing manager (Fred Hodgkinson, 1-800-853-6705 or fhodgkinson@grainscanada.gc.ca). The manager will ask the operator to provide a formal request in writing with information about the facility's operations. The Licensing unit reviews requests for exemptions on a case-by-case basis.

What happens when the request is approved?

The CGC prepares an order indicating that the facility is exempted and posts the name and location of the facility on the web site. Exempted facilities post a notice at the facility to show they are exempted. The notice states that grain handled at the facility is not protected by security held by the CGC.

If I apply to the CGC for a producer car, am I covered by CGC security if I take my grain to a producer car loading facility?

No. Under the Canada Grain Act, elevators and grain dealers must be licensed by the CGC and post security to cover their liabilities to grain producers. The CGC exempts producer car loading facilities from these provisions, as long as they meet conditions designed to protect producers and uphold the quality assurance system. Therefore, grain handled and stored at producer car loading facilities is not protected by security held by the CGC. A list of these facilities is available on the web site. Exempted facilities also post a notice at the facility to show they are exempted.

If you are unsure if you are dealing with a CGC licensee, check these lists.

List of Licensees

Producer Car Loading Facilities Exempted from Licensing

Isn't there security provided at some point for producers who apply for producer cars?

Yes, there is. Producer security takes effect when a producer car is unloaded at the terminal and the producer receives documentation at unload.

Related information

Licensing and Payment Protection for Producers