Top Crop Manager

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Consultations begin on licensing feed mills in Western Canada

Jan. 9, 2015 - The Canadian Grain Commission (CGC) begins consultations today on its proposal to license feed mills in Western Canada and to extend payment protection to grain producers who sell grain to feed mills.

The CGC is seeking input from feed mills, grain producers, producer groups, current licensees and industry stakeholders on its proposal to license feed mills and to assist in the development of licensing requirements for feed mills. Information collected will be considered when determining a threshold for commercial feed mills to be licensed.

Relevant information, including a description of the issue and a full description of the proposal, are available on the CGC's website, grainscanada.gc.ca. Information is also provided on the website on how stakeholders can comment on the proposal. Stakeholders have until April 9, 2015 to submit input.

Quick facts:

  • As part of its licensing and producer payment protection programs, the CGC issues licences for primary, terminal and process elevators, as well as grain dealers.
  • Feed mills are currently exempted from licensing in the Canada Grain Regulations. Should feed mills be licensed, they could be subject to some of the same requirements as process elevators.
  • A feed mill is an operation where a process or a combination of processes is used to produce or manufacture feed for livestock or poultry consumption.
  • Feed mills that could be subject to licensing include on-farm feed mills or commercial feed mills that purchase grain from producers to be used on farm, sold to a livestock operation or resold.
  • These operations would be licensed and would be required to provide security as a condition of licensing. Payment protection would only apply to eligible deliveries for the 20 grains defined in the Canada Grain Regulations.

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February 9, 2015
By Top Crop Manager