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Fall
2017
Grains
West
14
THE
FARMGATE
BY ANDREA HILDERMAN
SURPLUSSUGGESTIONS
UTILIZINGCANADIANGRAINCOMMISSIONEXCESSUSER-FEE
DOLLARS AWORK INPROGRESS
IN COLLECTING EXCESS USER FEES
from farmers, the Canadian Grain Com-
mission (CGC) accumulated a sizable
surplus since 2013/14. The almost $100
million is now the subject of an industry-
wide consultation on its potential uses.
The CGC is expected to announce plans
to review the proposals and suggestions it
has received. As the federal grain-
handling regulator doesn’t have the
authority to make this spending decision,
ideas will be submitted to the Treasury
Board of Canada Secretariat, the feder-
al departments of justice, finance and
agriculture, and Agri-Food Canada. The
CGC also foresees soliciting further input
before a decision is made.
The deliberation process was launched
Mar. 1, 2017, with a discussion document
outlining a number of proposals, includ-
ing the creation of a producer compen-
sation fund to enhance the existing CGC
Payment Protection Program; reducing
CGC user fees; and upgrading the CGC
Grain Research Laboratory and/or estab-
lishing new labs with real-time analytics
at licensed terminal elevators to enhance
CGC services. Industry and farmer
stakeholders were invited to comment.
This included all CGC licensees, producer
and industry organizations, as well as
government organizations with a stake in
the outcomes.
The majority supported using the sur-
plus to reduce CGC user fees as opposed
to creating a new producer compensation
fund. It was felt the latter might unfairly
benefit less stable licensees and/or lead
to more risk for producers if licencees
engaged in higher-risk activities, knowing
there were additional funds to compensate
producers if risks were not rewarded.
Familiar with its contributions to the
industry, stakeholders were also broadly
supportive of the abovementioned labora-
tory upgrades. There was, however, mixed
support for investing in elevator-based labs
and analytics. Stakeholders also stated
there should be a demonstrated and meas-
urable benefit shown for such plans prior
to any investments being made.
Stakeholders also had ideas about how
to spend the surplus. Not surprisingly, one
of these was to return the surplus to farm-
ers. However, this would be a challenge to
administer, so the next best solution—ac-
cording to farmers—would be to reduce
user fees.
CGC modernization ideas include:
• updating the grain handling and
standards system
• developing improved market
information
• implementing 24/7 vessel loading
• improving monitoring and grade
validation during vessel loading
• improving producer grain grading
services
• developing better mycotoxin testing
• investing in promotional activities to
increase the awareness of the Harvest
Sample Program
• improving the subject-to-grade and
dockage service
Prior to the comments process closing
on May 1, 2017, further ideas were put
forward. These included launching a pilot
program to audit grain company dockage
machines and producer delivery sample
assessments; supporting plant breeding
with a view to discontinuing the charging
of royalties; and purchasing new railcars.
Notably, the CGC must restrict the
use of surplus dollars to activities it is
authorized to provide under the Canada
Grain Act.
Recently, the CGC has reduced user
fees for official grain inspection and grain
weighing services by up to 24 per cent.
The changes went into effect Aug. 1, 2017,
and will spare farmers approximately $10
million in fees over the next crop year.
Photo:CanadianGrainCommission
The federal grain-handling regulator, the Canadian Grain Commission, will examine the results of an industry-wide
consultation process in utilizing its $100million surplus.