All Grain Ltd.’s bankruptcy and the CWB Buy-back

[TOM4CWB]

I think this is a very important topic, I hope you take the time to learn more about our laws, for financial stability, and our farm's well being in this unstable changing world!

In the March 15, 2001 Western Producer pages 30 and 31, articles are presented respecting the bankruptcy of an Alberta company called “All Grain Ltd”.

Why was the Canadian Grain Commission (CGC) not responsible to have insured that farmers were dealing with a properly bonded company?

Isn’t it against the law to buy or sell grain in Canada, without becoming a Licensed and Bonded grain company?

Information officer Mr. Paul Graham gave the Canadian Grain Commission's response:

“…unfortunately there’s little it (the CGC) can do for the farmers. All Grain was not licensed with the commission and is not covered by any form of security.
Last November, the grain commission’s licensing unit wrote a letter to All Grain suggesting it become licensed. Erling-Tyrell (the owner of All Grain Ltd.) replied he didn’t need a licence because he wasn’t selling grain using Canada Grain Act grain names, said Graham.”

Presumably both selling and buying must be included with this statement.

I think it is extremely important that farmers know if they do not get official CGC documents with an official graded Canada Grain Act grade specified on the documentation, even in the case of a licensed CGC dealer, coverage of the bond may not be extended to that purchase of grain from that farmer.

Getting official grading done and documented is vital to being placed under the protection of the Canada Grain Act.!.

That being said, what on earth does this have to do with the CWB buy-back program?

Well it brings us to the guts of the Canada Grain Act, and how it is applied to people buying and selling officially graded grain in Canada.

The CWB buy-back requires Farmers to buy grain using official Canada Grain Act grades!

The CWB buy-back transaction breaks Section 102 of the Canada Grain Act, by forcing Farmers to buy their grain using the Canada Grain Act Grade Name and Grade, which is prohibited if the Farmer is not licensed under the Canada Grain Act.

What does Section 102 say exactly?

102.(1) No person shall, in the purchase or sale of grain, use a grade name established by or under this Act in any record or acknowledgement of the receipt or discharge of grain unless the person is licensed under this Act.

(2) Subsection (1) does not apply to a sale of grain by a producer who produced the grain.

When a farmer does the CWB buy-back that farmer buys the product back by grading it with a specific grade under the Canada Grain Act.

Clearly this breaks section 102.

This however adds great weight to the argument that buy-back transactions are only meant for grain elevator companies who are licensed under the Canada Grain Act, and were never intended for farmers with their own ungraded produce simply leaving Canada.

SO WHAT DO YOU THINK?

This IS WHAT THE ATTORNEY GENERAL OF CANADA TAUGHT ME!!!

THE FARMERS WHO DID THE BUY-BACKS THAT THE CWB FORCED THEM TO DID BREAK OUR CANADIAN LAWS!!!

FARMERS WHO WENT ACROSS THE BORDER WITHOUT BUYBACKS, SINCE GRAIN HAS TO BE GRADED TO BE IN THE JURISDICTION OF THE CANADA GRAIN ACT, THERFORE THE CWB ACT, DIDN’T BREAK CANADIAN LAW!!!


SHOULD THE CWB CONTINUE USING A BUY-BACK SYSTEM WHICH FORCES ALL FARMERS USING IT TO BREAK CANADIAN LAW?

Shouldn’t the Supreme Court of Canada hear these issues, and decide?

Why would the Attorney General of Canada oppose hearing these issues, and questions?

[Vader]

TOM4CWB,

Are you saying that the Section 102 of the Canada Grain Act should be amended such that

102. (2) Subsection (1) does not apply to sale OR PURCHASE of grain by a producer who produced the grain

Here is the problem. A producer is exempted from the selling of his grain by grade name but he is not exempted from buying. Therefore at the present time anyone buying their grain back under the CWB buyback is violating Section 102 since they are buying by grade name and they are not licensed under the Canada Grain Act.

Well Holy Cow!!

Somebody had better tell the CWB right away!! This is serious. Some overzealous police officer or even some CGC inspector might lay an information against the next farmer who participates in a CWB buy back.

Would the courts have a problem then considering how many farmers have already been convicted for NOT going through the buy back.

Can the CWB have its cake and eat it too?

[TOM4CWB]

Vader,

The real point is to bring attention to the CWB practice of forcing farmers to buy back their own grain, so they can own it!

Funny thing, you would think if you had the right to something that someone could not extract money from you to retain ownership. In normal terms this would be called extortion, wouldn't it?

Grading of grain is very important to the CWB, which really is what the buy-back is forcing a farmer to do.

The grading of grain brings this lot of grain into the flow of trade and commerce, which then gives the CWB authority under 91(2) of the constitution to control the grain.

This is why the CGC did not shut down All Grain, because as long as All Grain did not use Canada Grain Act grades in any transactions, All Grain was not considered to be in the flow of trade and commerce for the purposes of The Canada Grain Act.

If they were, the CGC had an obligation under law to shut All Grain down from day one, or to force them to become licensed and bonded.