Primary elevator licence (Canadian Grain Commission)

A buyer of a grain handling business meets this licence under the federal Canada Grain Act. The Act defines a primary elevator as one whose principal use is receiving grain directly from producers for storage or forwarding or both. It sets out licence classes, one of which is the primary elevator licence, being a licence to operate a primary elevator.

Licence, exemption and security

Section 44 says no person shall operate an elevator of a type referred to in section 42 unless that person holds a licence issued in respect of the elevator or the elevator has been exempted under section 117. Under section 45, the Commission may issue a licence if satisfied the applicant and the elevator meet the Act’s requirements, and may, subject to the regulations, fix the security to be given by bond, suretyship, insurance or otherwise, having regard to the applicant’s potential obligations to producers holding cash purchase tickets, elevator receipts or grain receipts. Section 46 lets it refuse an elevator licence if that security has not been given, among other grounds. The Commission’s licensing page says a grain company licence must be renewed each year. See does a buyer need its own licence before the sale closes.

What to ask

• Is the elevator licensed, or exempted, and for which class?
• What security has the Commission fixed, and who provides it?
• What does the Commission need when the operator changes?