Cargill is closer to fixing problems with paying farmers promptly for their delivered grain.
“They [Cargill] have worked through most of the issues,” Canadian Grain Commission spokesman Remi Gosselin said in an interview Tuesday. “Our understanding at the grain commission is that there should be no issues on a go-forward basis for future deliveries and they are working through previous deliveries to resolve all of the complaints, but it’s going to take sometime to get through each one of them.”
Some farmers who delivered grain starting in August complained Cargill was slow to pay them. Under the Canada Grain Act, licensed primary grain elevators are obliged to pay farmers for their grain immediately if the farmer requests it.
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Payment delays followed “the implementation of a new technology system,” Cargill official April Nelson wrote in an email Friday.
“We apologize for the impact this has had on our Canadian grain customers and our teams are dedicated to fulfilling all contracts as soon as possible. We know that this experience is not what customers expect from Cargill.
“We are committed to a high level of service and are in frequent communication with the Canadian Grain Commission (CGC) as we navigate this issue, with focused priority on quick resolution for our farmer customers. We ask anyone currently experiencing payment delays to reach out to their local Cargill representative if they haven’t already done so.”
The Western Producer reported on Cargill’s problems Sept. 30.
The CGC was aware of the issue and working with Cargill, Gosselin said in an interview with the Manitoba Co-operator Nov. 1.
“The point we want to make is farmers don’t need to worry about the financial wellbeing of Cargill,” he said. “It’s not that they are going out of business, or having trouble paying producers, it’s more about their internal computer systems having a glitch and they are working on resolving that problem.
“Believe me, if we had any indication of any problem the CGC would be taking action. We have no indication of financial difficulties at Cargill.”
A number of farmers have complained about Cargill’s slow payments on social media.
In a letter Friday to Cargill customers president Jeff Vassart apologized and asked for continued patience.
“Your local [Cargill] team has been working extremely hard throughout this difficult situation and is dedicated to delivering excellent customer support,” Vassart wrote. “They continue to actively communicate the customer impact of these issues to Cargill leadership. Please know we continue to work hard to return to the level of service you deserve.
“If you require an immediate payment, please reach out to your Cargill representative or your Cargill location. We will ensure your payment is addressed as quickly as possible. We will continue to post updates on CargillAg.ca as we continue to work through these issues.”
Unpaid farmers can also call the CGC, Gosselin said.
“Our [CGC] experience has been when we escalate things with them [Cargill] that they resolve the individual complaints in relatively short order,” he said.
“Cargill will be presenting us with a plan on how they will work through all of the outstanding payments. There is open and direct communications with Cargill and we are in direct contact with them.”
Ensuring farmers get paid for ‘regulated‘ grain delivered to licensed grain companies is part of the CGC’s role under the Grains Act.
The CGC regularly audits grain companies to ensure they have enough security posted to cover farmer liabilities. However, the CGC’s payment protection program is time-limited.
After delivering grain, farmers have 90 days to exchange a primary elevator receipt or grain receipt for a cash purchase ticket or cheque. But once a farmer receives a cash purchase ticket or cheque, he or she is eligible for compensation paid from the licensed company’s security for only 30 days, so long as it’s still within the 90 days post-delivery. If not, farmers are ineligible for payments from the company’s posted security.
There’s also a chance the security doesn’t cover all what’s owed to farmers. In that case payments are pro-rated. That’s why the CGC recommends farmers get paid as soon as they deliver grain to an elevator.
— Allan Dawson is a reporter for the Manitoba Co-operator at Miami, Man.
