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Resolution Title: CGC Payment Protection Fund
Year: 2016
Resolution #: G&O10-2016AGM
Resolution:

WHEREAS the Canadian Grain Commission’s bond-based system for payment protection has failed to adequately protect producers against payment default, in some cases only paying out 14 cents on every dollar owed;

WHEREAS a fund based approach like the Ontario Grain Financial Protection Fund offers a simpler, more cost-effective and transparent alternative to the bond based payment security system;

WHEREAS a fund based approach requires the fund to “build up” before it can provide full protection at minimal costs to producers;

WHEREAS the Canadian Grain Commission is anticipating a surplus of over $90 million in accumulated user fees by 2018 and will be consulting with industry about where to direct these funds;

BE IT RESOLVED that APAS support the concept that the CGC accumulated surplus should be used to establish a payment protection fund to provide producers with transparent and cost effective protection against payment default.

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