Producer Payment Security Mechanisms
a study undertaken by general farm organizations, and commodity groups.
ON May 8, 2009, the Steering Committee investigating options for Producer Payment Security Mechanisms released the final report by Scott Wolfe Management.
The objective of the project was to examine payment security options as a result of the proposed changes to the Canada Grain Act affecting the payment security program under the Canadian Grain Commission. F
our options, including the current system, were studied by Scott Wolfe Management, the consulting firm hired to conduct the research. The options included the following models: security-based, insurance-based, fund-based, and clearinghouse.
The steering committee includes representatives from general farm organizations, commodity groups and a trade association. Steering committee members contributed their time and financial resources to the project.The organizations involved in the committee will now seek feedback from their membership. This will include what the next steps will be in further developing one or more of the options, including refining the current payment security program.
Agriculture and Agri-Food Canada through its Private Sector Risk Management Partnerships Program also provided partial funding for the study.
The study consisted of an analysis on the payment security options, highlighting the relative strengths and weaknesses of each.The English report is available here along with the appendices. The French versions will be available in the coming weeks.
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For more information, please contact:
Agricultural Producers Association of Saskatchewan,
Greg Marshall, President: 306-789-7774 or 306-746-7747 (cell)
or
Nial Kuyek, General Manager: 306-789-7774 or (306) 531-7854 (cell)
Alberta Pulse Growers Commission, David Walker, 780-434-7615
Canadian Canola Growers Association, Rick White, 204-789-8810
Canadian Special Crops Association, Carl Potts, 204-925-3786
Keystone Agricultural Producers, Rob Brunel, 204-447-7104
Manitoba Pulse Growers Association, Chris Sumner, 204-745-6488
Saskatchewan Pulse Growers, Garth Patterson, 306-668-6676
Western Barley Growers Association, Doug McBain, 403-816-0645
Wild Rose Agricultural Producers, Rod Scarlett, 780-416-6530
Project Mgr: Keystone Agricultural Producers, Yvonne Rideout, 204-697-1140
Project Admin: Canadian Federation of Agriculture, Glen Snoek, 613-236-3633
Click [HERE] to download the full report.
Click [HERE] to download the appendices.
As a requirement of the Canada Grain Act, elevators and grain dealers must be licensed by the Canadian Grain Commission. As a condition of licensing, an elevator or grain dealer must provide security to the Canadian Grain Commission. This security is used to compensate producers in the event they are not paid for the grain they deliver to the licensed company.