Around 20 Manitoba farmers calling themselves "Disgruntled Farmers Seeking Justice" are planning to seek compensation through the courts for grain they delivered to Puratone Corporation.
The group consists of producers who delivered grain to the company's feed mills in Winkler and Arborg in the 15 days prior to Puratone going into creditor protection in September.
"Between us we're owed about a million dollars for grain which we had delivered in good faith to the Puratone Corporation. None of it has been paid for. They processed it and fed it to their own pigs," says spokesperson John Sigurdson, who farms near Riverton.
A lawyer is currently working on developing their arguments for the case, but Sigurdson says it will likely involve proving that Puratone employees encouraged producers to deliver grain while knowing they would not get paid.
He says he believes Puratone and its secured creditors intentionally chose to go into creditor protection during harvest, when farmers were looking to deliver their new crop.
"The 15 days previous to them going into creditor protection came at a time when cash-strapped farmers had plenty of freshly harvested winter wheat in the bins and were looking for a home for it. Why didn't Puratone decided to go into CCAA protection a month sooner? I would say it's because they wouldn't have been able to source any grain because there wasn't any left on farms from the previous year," says Sigurdson. "So when it came to it, Puratone offered a small premium over the market and called farmers - some of them several times - to deliver grain, fully knowing they weren't planning on paying for the inventory, because you don't just wake up one morning and go into creditor protection."
Maple Leaf Foods is in the process of buying Puratone for $42 million, which will likely not cover any of the money owed to farmers since Puratone owes $86 million to three secured creditors.
"I believe Puratone and the monitor expect us farmers just to fade away into the background, but we're definitely not just going to be just pushed back into their memories," says Sigurdson. "Something has to be done here to rectify this situation."
Gerry Ritz The federal transport and agriculture ministers will be in Winnipeg on Friday morning for an announcement related to the challen
There were a few agriculture-related pieces of information in the provincial finance minister's budget speech on Thursday afternoon. The
Grain markets have likely reached the bottom of the downward trend that resulted from last year's record crop around the world, according
After three years of consultations and a record number of submissions during a public comment period last year, the new Canadian Code of P
Manitoba farmers who have stuck around in the hog business are seeing strong returns, as hog futures prices have spiked to all-time record
Selkirk-area farmer Brian Chorney describes his combine to students Elementary school classrooms across the country are hosting farmers and
Despite higher prices and lower feed costs, the number of cattle in Canada fell 0.7 percent from January 1st, 2013 to January 1st of this
Farmers close to the US border are trying to truck more grain south as a result of the rail bottleneck in Western Canada. "There's a lot
The Canadian International Grains Institute (Cigi) in Winnipeg is receiving $1 million from Viterra to continue its work promoting Canadia
The province says it will help fund the transition of management of community pasture land from the federal government to the newly-formed
The conflict between Russia and Ukraine has started to have a noticable impact on world grain markets. Wheat futures and - to a lesser ex
The shareholders had their say on the sale of a farmer-owned grain company in southeast Saskatchewan to Parrish & Heimbecker at a spec
A major announcement is planned for this morning at the Canadian International Grains Institute (CIGI) in downtown Winnipeg. Grain compan
Western Canadian farmers will be planting more canola this spring than in 2013, according to projections from international grain trader L
Robots and the ability to analyze enormous amounts of data will change the way farms operate in the future, according to a futurist who sp
The extreme cold weather resulted in CN Rail suspending operations on six subdivisions in Western Canada this weekend. The Cromer subdivi
It seems like there is no end in sight, with another day of bitter cold temperatures and wind chills getting near the minus 50s at tim
US oat millers are scrambling to find oats to keep their facilities operating as a result of the challenges with moving grain by rail in W
Soybeans are looking like an attractive option for Manitoba farmers in 2014, leading to expectations for another increase in acreage. New
Despite all the bearish news in the corn market - or maybe because of it - a well-known American economist says he's expecting corn prices
The provincial agriculture minister says he's concerned about the cash flow of Manitoba farmers, as they wait to deliver last year's crop
The Workers Compensation Board of Manitoba has unveiled $300 thousand in grants to the University of Manitoba's School of Agriculture for
Two eye-catching piles of wheat that have served as a visual symbol of last year's bumper crop to many Manitobans will be cleaned up over
Environmental groups should support genetically modified crops because they have an important role in addressing food security and climate
The provincial government has announced more than $444 thousand in grants to help 20 farms and agribusinesses switch from coal to biomass