Canadian farmer Bill Prybylski planned to buy a new tractor with the income of the crops sold to two grain companies in early 2024.

He delivered the grain before both companies declare themselves in bankruptcy, leaving it short C $ 165,000 ($ 113,487.86) they owed. Now Prybylski has no money to replace his old tractor.

Hundreds of Canadian farmers have received delayed payments for their crops or have not been paid at all, since an increasing number of grain purchase companies declare bankruptcy in the midst of drought and low prices of basic products, according to Interviews with dozens of farmers, a government agency and a government agency and a review of bankruptcy documents.

Farmers are discovering that they are not necessarily protected from failures, revealing holes in the Canadian agricultural security network.

Banking add to the problems of farmers in Canada, the main producer of Canola and the number 3 in the world, while they also prepare for the tariffs of the United States.

Prybylski, which cultivates in Willowbrook, Saskatchewan, depends on a credit line to cover the deficit until he reaps the next harvest in autumn.

“Where do we cut our expenses? Or how do we get more income to do the things we need to do? Prybylski asked. As the planting season approaches, you need to buy fertilizers, seeds and fuel.

Farmers can sell crops to companies that operate storage terminals, merchants and other farmers that fattening livestock. In general, they are paid a few weeks after delivering grain and for a long time they have incurred most of their costs, a problem for those who deliver to a buyer who takes off before paying.

Canadian farmers have some financial protection through the Canadian Grain Commission administered by the Federal Government, which regulates crop transactions, supervises the failures of the grain company and sometimes it covers part of what farmers must Failed companies. The CGC pays bond compensation and other security that licensed companies must publish.

The CGC administered four failures of the company in 2024, compared to zero or one most of the years, and most since at least 2001, according to government data.

But some companies without a license have also failed, which suggests that problems can be broader.

Agricultural Christi Friesen said that grain buyer Agfinity tried to delay him to pay three peas, although he finally paid the C $ 75,000 that owes him more interests.

Agfinity declared himself in bankruptcy on November 25.

“I needed to fight,” said Friesen, who cultivates 5,000 acres (2,023 hectares) of farmland in the Alberta Paz Region. “I was still a pain in my ass.”

Discovering that some companies that fail, such as Agfinity, have no license, have alarmed farmers, as well as discovering that some license companies are not fully secured.

The situation “has completely stated that we are not sure,” said Saskatchewan, Cherilyn Jolly-Nagel.

Companies that buy crops directly from farmers must, by law, have a license with the CGC, with few exceptions. For the legal application, the agency must complain to the Public Prosecutor’s Office of Canada, which then decides whether to take measures.

The CGC has not filed a complaint in at least seven years, said spokesman Christianne Hacault.

Other defects in farmers’ protections are the requirement of the CGC that farmers report lack of payment within 90 days, and licensed companies that do not publish adequate security, the farmers say.

The CGC is celebrating consultations with farmers about its protection system, said Hacault.

“We know there are holes.”

The Office of the Federal Minister of Agriculture, which supervises the CGC, did not respond to a request for comments.

AGFINITY owner, Joseph Billett, told Reuters that he reduced sales due to smaller crops, the relief of farmers to sell at low prices and the competition of American corn imports to feed cattle pushed the company to the company limit.

“These three factors made profitability very challenging, and for us, impossible, in recent years,” said Billett.

dusty zone

Farmers in the western half of the prairies of Canada have cultivated stunted crops for four years due to dry conditions. In some places, farmers say they face the worst prolonged drought from the Dust Bowl of the 1930s.

Crop insurance states that between 2021 and 2024 they shot seven times compared to the previous four -year period due to the crops damaged by the drought, according to the agencies of Alberta and Saskatchewan.

Numerous small grain companies, corridors and merchants are among Canadian crops buyers, unlike some countries dominated by global players.

In the United States, farmers also had low prices to deal with, but their crops had better growth conditions, which allowed them to recover income. Some states regulate grain companies so that farmers have protection against the lack of payment, but the situation varies from state to state.

In Canada, some companies have avoided bankruptcy, but they are still fighting.

The northwest terminal built by farmers in Unity, Saskatchewan, said in September that he would stop buying grains at least until July to avoid losses.

In an interview, the NWT CEO, Jason Skinner, said the intense competition to buy small crops hit his company, although he has avoided bankruptcy.

“We have seen some winds against significant and. . . margins that do not cover costs, “Skinner said.

In May, LSM Grain collected two red lentil trucks, with a value of approximately C $ 50,000, from Saskatchewan Farmer Kelly Arthurs, but did not pay him. The CGC revoked the LSM license in July.

The company could not be contacted to comment.

Arthurs complained to the CGC within 90 days after the delivery of his grain and was finally compensated.

But 17 farmers owed $ 842,000 combined by LSM expected too much and will not qualify for compensation, according to a bankruptcy document and the CGC. Prybylski is one of them.

Global food and ingredients were also broken due to Prybylski money in spring. He filed his complaint in time to qualify for coverage, but only received 75% of what was due to him because Global had published insufficient security.

A law firm that represents Global Foods did not respond to a request for comments.

Arthurs said he felt so much stress for months of struggle to receive payments to stop stopping agriculture.

“It’s time to retire.”

($ 1 = 1,4295 Canadian dollars)

(Caroline Stauffer and Rod Nickel edition)