APAS calls for review of grain commission system after Purely Canada Foods licenses revoked

Purely Canada Foods Corp. website

In the wake of Purely Canada Foods Corp. having its grain and primary elevator licenses revoked – the organization representing Sask. farmers is calling for a review of policies that allowed the company to deal grain in the first place.

The Agricultural Producers Association of Saskatchewan (APAS) says the revoking of Purely Canada’s licenses is the fourth instance in recent months.

The organization says it’s seeing a troubling trend requiring “rapid and resolute” responses to protect the interests of farmers.

"Payment security is the cornerstone in safeguarding the interests and livelihoods of farmers. It's hard to fathom that, despite its significance, the program has seen little to no improvement for over 15 years," APAS President Ian Boxall said in the release.

On Aug. 28, the Canadian Grain Commission (CGC) revoked the grain dealer and primary elevator licenses at Avonlea, Kindersley and Lajord, Sask.

The commission encourages any producers who are owed money by the company to contact its Safeguards for Grain Farmers Program.

In January, a group of 27 Saskatchewan oat farmers said they had lost millions of dollars after claiming the Purely Canada Foods voided their contract for gluten free oats.

A representative of the group told CTV News that after months of no communication with the company, they found out their contract was being dropped by Purely Canada Foods because of a force majeure for various reasons on their part.

A force majeure clause removes liability in contracts because of catastrophic unforeseen events or circumstances.

The group said it was seeking nearly $60 million after learning the contracts had been voided.

"The toll it takes on a farm when payments aren't made can't be overstated. Producers are left facing not only financial duress but significant emotional and mental strain," Boxall added in the release.

"Furthermore, the revocation of licenses in key areas of our market only serves to stifle the very competition and diversification we strive for in our agricultural sector. A better approach is needed."

The organization is calling on the CGC to implement reforms to improve financial protections for producers.

“As the CGC's mandate prioritizes producer interests, it is incumbent upon them to perform the necessary analysis and exercise evidence-based policymaking to fortify a program that is crucial for the financial stability of farmers,” APAS added.

--With files from Drew Postey