The western Canadian grain industry is examining the issue of producer payment protection in light of proposed changes to the Canada Grains Act.
The regulations would be amended to remove mandatory bonding of grain buyers if Bill 3-39 is passed. It was proposed by the federal government in 2007.
Suitable alternatives for farmers and the trade will be sought so that farmers are not exposed to serious financial risks when delivering grains, oilseeds, pulses and special crops to elevators and other purchasers.
Utilizing currently available information and analysis, the groups will be working with Scott Wolfe Management, a consulting company, to evaluate a range of options that may be available to the industry. Some of the options include security-based, insurance-based and fund-based protection mechanisms and clearinghouse models.
This project is supported by crops associations and general farm organizations. Individual growers and industry will have input into the process.