Any farmers who did business with Zeghers before March 25 may be eligible for payment security under the CGC’s Safeguards for Grain Farmers Program and are encouraged to contact the CGC immediately.
Under this program, licensed grain companies are required to provide payment security to the CGC to cover money owed to producers for grain deliveries.
That security can come in the form of a bond, an irrevocable standby letter of credit or guarantee, or a payables insurance policy.
Sections 95, 116 and 118 of the Canada Grain Act allow the CGC to revoke a license if a company can’t maintain that security.
Farms.com has contacted the CGC for details on what caused the commission to revoke the license