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The Mani<strong>to</strong>ba Co-opera<strong>to</strong>r | November 29, 2012 19<br />

KAP sets up Pura<strong>to</strong>ne meet<strong>in</strong>g<br />

It wants <strong>to</strong> get more <strong>in</strong>formation for gra<strong>in</strong> <strong>farmers</strong> owed money<br />

By Allan Dawson<br />

CO-OPERATOR STAFF<br />

Keys<strong>to</strong>ne Agricultural Producers<br />

(KAP) is host<strong>in</strong>g a meet<strong>in</strong>g Dec.<br />

3 <strong>to</strong> try and clarify where gra<strong>in</strong><br />

<strong>farmers</strong> owed money by Niverville-based<br />

Pura<strong>to</strong>ne stand.<br />

“We’re not go<strong>in</strong>g <strong>to</strong> be threaten<strong>in</strong>g<br />

people or mak<strong>in</strong>g statements of claim,”<br />

KAP president Doug Chorney said <strong>in</strong> an<br />

<strong>in</strong>terview Nov. 26. “We really just want <strong>to</strong><br />

get the facts out because so far members<br />

are tell<strong>in</strong>g me they’re gett<strong>in</strong>g their <strong>in</strong>formation<br />

through the media and through<br />

Deloitte, the moni<strong>to</strong>r, but they are limited<br />

<strong>in</strong> what they know about what’s really<br />

go<strong>in</strong>g on.”<br />

Meanwhile, some Pura<strong>to</strong>ne farmercredi<strong>to</strong>rs<br />

are explor<strong>in</strong>g the possibility of<br />

a lawsuit aga<strong>in</strong>st Pura<strong>to</strong>ne direc<strong>to</strong>rs <strong>to</strong> try<br />

and recoup the estimated $900,000 gra<strong>in</strong><br />

<strong>farmers</strong> are owed <strong>in</strong> <strong>to</strong>tal.<br />

Pura<strong>to</strong>ne, which operates about 50<br />

hog barns <strong>in</strong> Mani<strong>to</strong>ba and three feed<br />

mills, filed for credi<strong>to</strong>r protection Sept.<br />

BRIEFS<br />

Monsan<strong>to</strong> Fund<br />

gives grants<br />

<strong>to</strong> community<br />

groups<br />

Staff<br />

Fourteen Mani<strong>to</strong>ba communities<br />

were among the<br />

58 chosen from across<br />

Canada for grants under<br />

the Monsan<strong>to</strong>’s Canada’s<br />

Farmers Grow Communities<br />

program.<br />

The program aimed at<br />

strengthen<strong>in</strong>g rural communities,<br />

provides the<br />

opportunity for <strong>farmers</strong> <strong>to</strong><br />

secure a $2,500 grant for<br />

their favourite community<br />

charity or not-for-profit<br />

organization.<br />

The Monsan<strong>to</strong> Fund will<br />

direct $145,000 <strong>to</strong> charitable<br />

and not-for-profit<br />

groups who are mak<strong>in</strong>g a<br />

difference <strong>in</strong> the lives of<br />

rural residents.<br />

“We are pleased with the<br />

response <strong>to</strong> our first year<br />

and look forward <strong>to</strong> build<strong>in</strong>g<br />

awareness and hav<strong>in</strong>g<br />

many more <strong>farmers</strong> nom<strong>in</strong>at<strong>in</strong>g<br />

groups or projects<br />

<strong>in</strong> their communities,” said<br />

Trish Jordan, public and<br />

<strong>in</strong>dustry affairs direc<strong>to</strong>r<br />

with Monsan<strong>to</strong> Canada.<br />

Launched last summer,<br />

the program gave <strong>farmers</strong><br />

across Canada the opportunity<br />

<strong>to</strong> nom<strong>in</strong>ate a local<br />

charity or not-for-profit<br />

group <strong>in</strong> their community<br />

by visit<strong>in</strong>g www.Canadas<br />

Farmers.com and complet<strong>in</strong>g<br />

an entry between<br />

June 1, 2012 and September<br />

30, 2012. The w<strong>in</strong>ners<br />

were chosen by random<br />

draw on November 1,<br />

2012. Jordan said the current<br />

<strong>plan</strong> is <strong>to</strong> cont<strong>in</strong>ue the<br />

Canada’s Farmers Grow<br />

Communities program <strong>in</strong><br />

2013 with the cont<strong>in</strong>ued<br />

support of the Monsan<strong>to</strong><br />

Fund. Farmers <strong>in</strong>terested<br />

<strong>in</strong> the program can visit<br />

www.canadas<strong>farmers</strong>.com<br />

for more <strong>in</strong>formation.<br />

12, ow<strong>in</strong>g credi<strong>to</strong>rs around $100 million,<br />

<strong>in</strong>clud<strong>in</strong>g $86 million <strong>to</strong> three banks,<br />

which are secured credi<strong>to</strong>rs. Deloitte was<br />

appo<strong>in</strong>ted <strong>to</strong> moni<strong>to</strong>r the process.<br />

Nov. 1, Maple Leaf Foods announced<br />

it had entered <strong>in</strong><strong>to</strong> an agreement <strong>to</strong> purchase<br />

Pura<strong>to</strong>ne for $42 million.<br />

Some farmer-credi<strong>to</strong>rs have said Maple<br />

Leaf should demonstrate it’s a good corporate<br />

citizen by pay<strong>in</strong>g <strong>farmers</strong> owed<br />

money for gra<strong>in</strong> delivered <strong>to</strong> Pura<strong>to</strong>ne.<br />

Maple Leaf disagrees.<br />

“Maple Leaf is purchas<strong>in</strong>g the assets of<br />

Pura<strong>to</strong>ne, which does not represent liabilities<br />

held by the company,” Maple Leaf<br />

spokesman Dave Bauer said <strong>in</strong> an <strong>in</strong>terview<br />

from Toron<strong>to</strong> Nov. 8. “The courts will<br />

supervise how those debts are settled...”<br />

Officials from Pura<strong>to</strong>ne, Maple Leaf,<br />

Deloitte, the lenders (Farm Credit Canada,<br />

Bank of Montreal and the Mani<strong>to</strong>ba<br />

Agricultural Services Corporation), the<br />

Mani<strong>to</strong>ba Pork Council and the Animal<br />

Nutrition Association of Canada, which<br />

represents feed mills, are attend<strong>in</strong>g the<br />

meet<strong>in</strong>g, Chorney said.<br />

2012 YIELD COMPARISONS (BU/A) *<br />

N = 5<br />

N = 9<br />

In Mani<strong>to</strong>ba, DEKALB ® brand 73-75 RR<br />

w<strong>in</strong>s 79% of trials * versus InVigor ® L Series.<br />

2 YEAR YIELD COMPARISONS (BU/A) **<br />

N = 7<br />

N = 17<br />

L130 43.6<br />

73-75 RR<br />

L150<br />

73-75 RR<br />

38.1<br />

44.5<br />

46.6<br />

L130 46.5<br />

73-75 RR<br />

L150<br />

41.6<br />

73-75 RR 45.1<br />

7 9 %<br />

2012 TRIAL WIN RATE<br />

48.4<br />

Kyle Foster, an Arborg farmer, a KAP<br />

executive member and a Pura<strong>to</strong>ne credi<strong>to</strong>r,<br />

will represent <strong>farmers</strong> owed money<br />

by Pura<strong>to</strong>ne.<br />

Chorney said he doesn’t want <strong>to</strong> give<br />

<strong>farmers</strong> false hope.<br />

“But No. 1 we’re go<strong>in</strong>g <strong>to</strong> try <strong>to</strong> (get<br />

<strong>farmers</strong> their money) and No. 2 we’re<br />

go<strong>in</strong>g <strong>to</strong> try and make sure this doesn’t<br />

happen aga<strong>in</strong> through some k<strong>in</strong>d of payments<br />

security program,” he said.<br />

Currently only gra<strong>in</strong> companies<br />

licensed by the Canadian Gra<strong>in</strong> Commission<br />

are required <strong>to</strong> post security <strong>to</strong> cover<br />

what’s owed <strong>to</strong> <strong>farmers</strong> when they deliver<br />

<strong>to</strong> a licensed facility any of the 21 gra<strong>in</strong>s<br />

and oilseeds listed under the Canada<br />

Gra<strong>in</strong> Act. Feed mills are not covered by<br />

the CGC’s security program. Neither are<br />

farmer-<strong>to</strong>-farmer gra<strong>in</strong> sales.<br />

When companies declare bankruptcy<br />

the rules around credi<strong>to</strong>rs are relatively<br />

straightforward. Any funds earned from<br />

the sale of the firm’s assets first go <strong>to</strong><br />

secured credi<strong>to</strong>rs.<br />

Under Section 81.2 of the Bankruptcy<br />

“We really just want <strong>to</strong><br />

get the facts out because<br />

so far members are<br />

tell<strong>in</strong>g me they’re gett<strong>in</strong>g<br />

their <strong>in</strong>formation through<br />

the media and through<br />

Deloitte, the moni<strong>to</strong>r, but<br />

they are limited <strong>in</strong> what<br />

they know about what’s<br />

really go<strong>in</strong>g on.”<br />

DOUG CHORNEY<br />

and Insolvency Act <strong>farmers</strong> go <strong>to</strong> the <strong>to</strong>p<br />

of the credi<strong>to</strong>rs’ list if they’ve delivered<br />

products with<strong>in</strong> 15 days of the firm go<strong>in</strong>g<br />

bankrupt. But that presumably doesn’t<br />

apply here because Pura<strong>to</strong>ne sought<br />

credit protection, found a buyer and<br />

never declared bankruptcy.<br />

Even under the severe weather conditions of 2012,<br />

73-75 RR consistently out yielded competi<strong>to</strong>rs.<br />

While no one w<strong>in</strong>s them all, <strong>in</strong> FACT trials conducted<br />

by farmer co-opera<strong>to</strong>rs, DEKALB won its fair share.<br />

Consistent yield performance under adverse conditions,<br />

that’s the complete package. Visit www.DEKALB.ca for<br />

more details.<br />

*Source: 2012 Monsan<strong>to</strong> Field Scale Trials as of Oc<strong>to</strong>ber 3, 2012 <strong>in</strong> Mani<strong>to</strong>ba. **2011-2012 Monsan<strong>to</strong> Field Scale Trials as of Oc<strong>to</strong>ber 3, 2012 <strong>in</strong> Mani<strong>to</strong>ba. DEKALB represented by 73-75 RR; InVigor by L150. Individual results may vary, and performance may vary<br />

from location <strong>to</strong> location and from year <strong>to</strong> year. This result may not be an <strong>in</strong>dica<strong>to</strong>r of results you may obta<strong>in</strong> as local grow<strong>in</strong>g, soil and weather conditions may vary. Growers should evaluate data from multiple locations and years whenever possible. Always<br />

follow gra<strong>in</strong> market<strong>in</strong>g and all other stewardship practices and pesticide label directions. Details of these requirements can be found <strong>in</strong> the Trait Stewardship Responsibilities Notice <strong>to</strong> Farmers pr<strong>in</strong>ted <strong>in</strong> this publication. DEKALB® and Design and DEKALB® are<br />

registered trademarks of Monsan<strong>to</strong> Technology LLC. Monsan<strong>to</strong> Canada Inc. licensee. InVigor® is a registered trademark of Bayer. ©2012 Monsan<strong>to</strong> Company.

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