Eligible Purely Canada claimants receive full payouts

Glacier FarmMedia—The Canadian Grain Commission has announced that producers owed money from Purely Canada Foods have been fully compensated, just days after a lender applied to place the company in receivership.

This is the largest compensation payout in the history of the Safeguards for Grain Farmers Program.

The commission said 78 eligible claims worth more than $17 million were paid after the company’s licences were revoked last August.

Purely Canada Foods Corp., a division of Above Food, had grain dealer and primary elevator licences in Saskatchewan at Avonlea, Kindersley and Lajord.

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It had posted a security bond of $35 million with the grain commission, but the organization said it couldn’t pay multiple claims because deliveries had occurred outside of the eligibility period.

“The Canadian Grain Commission is advocating for producers still owed money and encouraging them to seek payment directly from the company,” it said.

Producers are eligible within 90 days from the date of grain delivery or within 30 days from the date a cash purchase ticket or cheque was issued to them. The lesser time period applies. They must contact the commission within these periods to be eligible.

Those who request payment deferrals are eligible for compensation for 90 days after delivery but are not eligible if they receive a cheque post dated for more than 30 days later.

Since 1981, the program has paid out in 35 cases. The second-highest payout to date was $5.6 million to 126 producers in 2021-22. Those claimants received 80 percent of their total claim against W.A. Grain & Pulse Solutions.

Above Food Ingredients announced March 2 that Royal Bank of Canada had submitted an application for receivership for Purely Canada, which is described as a subsidiary of Above Food and four affiliated guarantor subsidies.

“PCFC has been operating in a limited capacity over the past six months as the entity has been working with the Canadian Grain Commission to meet relicensing requirements,” the news release said.

“PCFC and RBC agreed on a two-week period to negotiate the terms of a forbearance agreement, and management expects to reach a resolution with RBC within the two-week period.”