Grain commission cancels LSM licence 

Glacier FarmMedia—The Canadian Grain Commission has revoked the licence of LSM Grain Ltd.

In a phone message to the Western Producer, a commission spokesperson said the licence was revoked as of 12:01 a.m. July 23.

The commission’s website will be updated today to change the status of the Saskatoon grain dealer, which serves the food, pet food and animal food industries.

The company, which refers to itself as LSM Commodities, has bought and sold most of the grains produced in Western Canada, including pulses, oilseeds and cereals.

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“LSM Commodities Ltd. is an organic and conventional trading company,” its website says. “Our goal is to provide a link between suppliers and end users.”

Kelly Arthurs, who farms in west-central Saskatchewan near Marengo, is one of those suppliers.

In May, LSM picked up two semi-loads of red lentils from Arthurs’ farm, but he said the company never paid him for the crop, which was valued at $45,000 to $50,000.

“Twice I was told that checks were being cut in LSM’s office, and they would be in the mail,” Arthurs said July 22.

Arthurs even visited the LSM Commodities office in Saskatoon to discuss the non-payment with owner Lynn McMillan.

“I was at Lynn’s office about two and half weeks ago. He said he’s in a cash flow squeeze,” Arthurs said.

He said he spoke to other producers while attending Ag In Motion in mid-July who haven’t received payment from LSM Commodities for grain deliveries.

Arthurs said he was told at AIM that a number of farmers began phoning or emailing the grain commission in June to alert it of non-payment.

Christianne Hacault, a CGC spokesperson, said farmers who haven’t received payment should contact the commission as soon as possible.

“Anytime a producer is having late payment, a bounced check or anything like that, call us immediately because there are eligibility windows for our payment protection program,” she said.

“The longer they wait, they may fall out of that eligibility window.”

In Arthurs’ case, he should qualify for CGC protection because he hasn’t exceeded the 90-day period since LSM picked up the lentils.

Still, the lack of payment has been stressful and unfamiliar.

“I’ve had three businesses in almost 45 years…. I’ve never had anybody, ever, short me on any kind of significant payment … on grain or any business I’ve ever had,” Arthurs said.

For more information on the CGC Safeguards for Grain Farmers program, click here.

—Updated July 24, corrects official name of the company to LSM Grain Ltd.