The Saskatchewan government should do more to help grain farmers affected by a decision by Big Sky Farms to file for creditor protection last week, Opposition leader Dwain Lingenfelter says.

"They brought the grain to Big Sky and now haven't been paid," Lingenfelter said Wednesday in the legislature. He asked the government to help the farmers seeking payment, and urged provincial politicians to ask Ottawa for funding to help Saskatchewan's pork industry.

Big Sky Farms Inc. is the largest hog producer in Saskatchewan, employing more than 400 people, and a significant buyer of farmers' grain. (CBC)

Big Sky Farms Inc., Saskatchewan's largest hog producer, applied for creditor protection under the federal Companies' Creditors Arrangement Act last Tuesday. The Saskatchewan government is the majority owner of Big Sky Farms, with a 63 per cent equity share in the company.

Provincial Agriculture Minister Bob Bjornerud said he hoped the farmers would recover some of the money they are owed for their feed, but he placed the blame for the current situation on previous NDP governments, saying the Opposition had made the initial investment in Big Sky Farms when it was in power.

"We saw them put $30 million into Big Sky and totally neglect every other part of the pork industry in this province," Bjornerud said Wednesday.

Big Sky offers premium

Big Sky Farms is still operating and has launched a program to encourage farmers to keep shipping feed to its facilities as it goes through the creditor protection proceedings.

"We are offering a premium for a delivery commitment on any future grains to producers that were affected by the proceedings," said Casey Smit, president and CEO of Big Sky.

The new program doesn't change the status of deliveries made before the credit protection filing, and farmers seeking payment for deliveries made before Nov. 10 will still have to make their claim through the Companies' Creditors Arrangement Act.

But Smit said many farmers have signed up for the new program.

"All our feed mills are receiving grain — and some farmers have cheques in their hands already," Smit said.

The company employs more than 400 people at about 40 hog facilities in Saskatchewan and Manitoba.