Resolution

WHEREAS The Canadian Grain Commission’s (CGC) 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 the APAS Board push for action on its policy that the CGC should establish a payment protection fund to provide producers with transparent and cost-effective protection against payment default.