Purely Canada Foods Corp

[blackpowder]

Well at any rate. If we want a stable special crop industry how do we do it because the old bond system isn't working.

[Templeboy]

Third party insurance is likely the way to go, the lowest premium will be charged to the grain co with the best credit history. If the third party wont insure, then don't sell to them. We are paying the fee already...just not visible. (Bond cost interest, not getting paid timely, legal costs)

[sumdumguy]

Well, it actually is working, you(the buyer) go over your bond and the license is pulled. The Grain Commission sees to it that the licensee is complying and that producers are almost if not totally covered. How is insurance different? Maybe I am missing something here?

[the big wheel]

How does it work with the bond is there actually money set aside by the companies at the cgc or is it a commitment backed by assets? If its money set aside isnt that a detriment to operating having that much money not being used?

[blackpowder]

Well, it actually is working, you(the buyer) go over your bond and the license is pulled. The Grain Commission sees to it that the licensee is complying and that producers are almost if not totally covered. How is insurance different? Maybe I am missing something here?

Every licenced grain buyer receivership I'm familiar with left people hanging. I was lucky to get 50% of what WA owed me.

[sumdumguy]

As far as I am concerned, when CGC allows operation and assures farmers that they are secured, CGC should be on the hook for the payment in full, not just to the extent of the bond.

[LEP]

As far as I am concerned, when CGC allows operation and assures farmers that they are secured, CGC should be on the hook for the payment in full, not just to the extent of the bond.

I think they have tightened up their monitoring of licensees in the last 4 or 5 years. Less situations of the bond being short of coverage.

But I agree, if they are monitoring the bonds and there is a shortfall they should cover it.

[blackpowder]

I feel the CGC is expensive enough already. If you're suggesting a complete revamp I'd support that discussion.
Not for their current mandate to be on the hook for millions more. You're paying for that too by the way.

[AlbertaFarmer5]

Not for their current mandate to be on the hook for millions more. You're paying for that too by the way.

That is the fact that is missed by all the demands that something must be done.
At the end of the day there is only one taxpayer, or in this case, producer who ends up paying for it one way or the other.

[LEP]

I feel the CGC is expensive enough already. If you're suggesting a complete revamp I'd support that discussion.
Not for their current mandate to be on the hook for millions more. You're paying for that too by the way.

Currently the bonding system is monitored by CGC. In the past you could hardly call it monitoring.

Essentially they would have very little to payout if they did their job.

But that is government for you.