W A Grain went bankrupt just over two years ago and producers (126 according to the Grains Canada website (link)) have received their settlements. The Grains Commission states average payout was 80% however the producers we have talked to claim it was closer to 70%.
It is unfortunate when these things happen (since the year 2000 the average is just below 1 per year 20/22) not only for the producers who get shorted but it can be devastating on the employees and communities that relied on these businesses.
At Quality Grain we have looked into various ways to help protect our producers but have been shot down by multiple insurance companies. Through our research the best service we have found is Portfolio Credit Insurance through the EDC (link). They will insure 90% of your receivables.
If you would like more information do not hesitate to reach out to us. The purpose of this lecture is not to scare anyone into thinking we have the inside track onto companies that may or may not be failing but rather to highlight the importance of protecting yourself and the available options.
Reed McDonald - Owner and chief blogger at Quality Grain Marketing. With all the noise and click bate headlines this agricultural based blog will highlight what current events I am following. Be sure to check in regularly for updated musings