WINNIPEG, April 23, 2012 /PRNewswire/ - Producers who did not receive payment for grain sold to Mustard Capital have received full compensation for their eligible claims through the Canadian Grain Commission's Payment Protection Program.
Mustard Capital was a licensed grain dealer located in Gravelbourg, Saskatchewan, until February 1, 2012.
"Canadian grain producers have the freedom to do business with a grain elevator or dealer of their choice. When producers choose to deal with a company licensed by the Canadian Grain Commission, they are covered by the Payment Protection Program. In the case of Mustard Capital, producers who were not paid for their deliveries 90 days prior to the company not being licensed, had the right to submit a claim for compensation," said Elwin Hermanson, Chief Commissioner for the Canadian Grain Commission.
Rules for compensation
In the case of Mustard Capital, eligible producers received 100% compensation for the amount they were owed. The Canadian Grain Commission reminds producers, that they must follow and meet certain rules to qualify for compensation under the Payment Protection Program. Producers are only covered by a licensed company's security for 90 days from the date they delivered their grain, or 30 days from the date they received a cash purchase ticket. The shorter of the two time periods applies.
About the Canadian Grain Commission
The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada's grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The Canadian Grain Commission regulates the grain industry to protect producers' rights and ensure the integrity of grain transactions.
SOURCE Canadian Grain Commission