The Canadian Grain Commission is looking at having feed mills and non-licensed grain buyers participate in its producer payment security program.

The issue has been thrust into the spotlight after a group of Manitoba farmers failed to get paid for grain they delivered to Puratone's feed mills after the hog company went into creditor protection in September.

"We at the commission have had some discussions about it and we are looking at it," says CGC Commissioner Murdoch MacKay.

Non-licensed buyers currently don't participate in the CGC's bond-based security program, but the commission is preparing to switch to an insurance-based program on August 1st, 2013. Farm groups including Keystone Agricultural Producers have asked the commission to consider expanding the program to non-licensed buyers as part of the changes.

MacKay says one challenge would be deciding which feed mills and other grain buyers should be in the program.

"Where do you start? You have the big ones, the mid-sized ones and the small ones, and then you have one farmer selling to another farmer. Where do you draw the line? " he explains. "It will be an added cost to them, and if you draw the line in the wrong place you're going to have people upset. Is it the right thing for us to be doing? Or are there other processes we can look at?"

"It's not falling on deaf ears. We've heard and are listening to it and looking at it," says MacKay.

He notes if they do expand the payment security program, it's quite possible it won't be part of the changes coming to the CGC on August 1st.

"It could happen, but we'll have to take a look at how it fits. I think it might be a little fast to include it," MacKay says, noting the CGC is also undergoing major changes to its structure and mandate. "That's a pretty involved process, so to all of a sudden add something else on, we still have some work to do to look at the feed mills...so I won't say no and I won't say yes."

He says work on developing the new insurance-based program for licensed grain dealers is on track for implementation on August 1st.

"Today things are looking like it will be August 1st, but everything's subject to things that happen within the process," says MacKay.