Facts for Farmers, 7 of a series

Your rights and responsibilities under the Canada Grain Act

Facts on your rights and responsibilities and dealing with licensed grain companies

Licensing protects you

The law requires some elevators and grain dealers to have a CGC licence and post security to cover their liabilities—what they owe—to farmers. Grain dealers and operators of primary, terminal and process elevators in western Canada are licensed by the CGC. In eastern Canada, grain dealers, buying grain from western producers, and operators of transfer elevators are licensed by the CGC. Seed cleaning plants which do not purchase grain, and feed mills don't have to be licensed. A license does not guarantee, however, that a company will never run into financial problems. Furthermore, there is no guarantee that you are covered 100 percent for what you are owed.

You can find out if a company is licensed by contacting the CGC. (List of licensed grain elevators and grain dealers.) Licensed elevators must display their licence on site.

The law explains how your rights apply when you deliver your crop, negotiate the grade, sell your grain, or have it shipped by producer car.

You are financially protected when you deliver grain to a CGC—licensed grain elevator or dealer. But this protection is limited, and you must follow certain rules to eligible for compensation.

If you want to know about the quality of your grain, by law, you can get an unbiased, accurate assessment of grade, dockage and moisture content from the CGC. This includes getting a binding decision from the CGC if you disagree with the elevator operator's assessment.

If you want to preserve the identity of your grain, you can ask for special bin storage and for a representative sample to be kept in a locked box. If you believe, after the grain is shipped, that its identity has not been preserved, you are entitled to ask the CGC to investigate and settle the dispute.

You have the right to apply to the CGC for a railway car for sending your grain to a destination you choose. Producer cars are allocated by the CGC. If you ship a producer car or consigned car to a terminal elevator and are dissatisfied with the CGC's official grade at unload, you have the right to request a reinspection by the CGC. Furthermore, you can appeal the CGC's reinspection and request one by the Grain Appeal Tribunal, whose decision is final and binding.

You can make a claim against a licensed company if it fails to pay you.

You are responsible for

• Determining if you are dealing with CGC licensees
• When making a claim, presenting CGC-authorized documents issued by the elevator operator
• Meeting the deadline for claims when a company fails to pay you.

Summing up

By being aware of your rights and responsibilities, you reduce the risk of running into financial problems and maximize your chances of getting a fair deal for the grain you grow. If you're in doubt about a transaction with a grain company or you want the assurance of an unbiased grade, the CGC can help. It's within your rights and responsibilities to ask.

Want to know more?

Call: 1-800-853-6705
Fax: 1-204-983-2751
Email: contact@grainscanada.gc.ca

Related information:

Canada Grain Act

Licensing and Payment Protection for Producers

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