CGC Lowers Grain Inspection and Weighing Fees

Summary#

The Canadian Grain Commission is proposing amendments to the Canada Grain Regulations to lower four fees for official inspection and official weighing. If approved, the changes would take effect on August 1, 2021 and are estimated to reduce costs to the grain sector by about $55.15 million over the next three fiscal years.

What it does#

The Canadian Grain Commission proposes to change Schedule 1 of the Canada Grain Regulations. Key points:

• The proposal is a consultation-stage measure. Interested parties have 15 days from the notice to comment.
• It reduces four specific fees to align them with an updated forecast for grain volumes (about 48.1 MMT per year for 2021–22 to 2023–24).
• New proposed fees (and current published fees for comparison):
  • Official inspection — ships: from $1.41/tonne to $1.00/tonne.
  • Official inspection — railway cars, trucks, containers: from $126.01 per inspection to $90.12 per inspection.
  • Official weighing — ships: from $0.07/tonne to $0.05/tonne.
  • Official weighing — railway cars, trucks, containers: from $6.95 to $4.96 per car/truck/container.
• The CGC says this is a targeted fee adjustment. A full fee review is expected later (planned after the ongoing Canada Grain Act review).

Who's affected#

The most directly affected groups are:

• Licensed terminal elevators and the companies that operate them (these businesses pay the CGC inspection and weighing fees).
• Grain handlers who contract inspection/weighing services.
• Grain producers, who may see indirect benefits if handling costs are passed back as lower tariffs and slightly higher net prices for deliveries.
• The Canadian Grain Commission itself, which will receive less fee revenue but expects to limit further surplus accumulation in its revolving fund.

Why it matters#

• Lower fees mean lower handling costs for the grain sector. The CGC estimates a savings of about $13.79 million in 2021–22, and about $20.68 million in each of 2022–23 and 2023–24, totaling roughly $55.15 million over the three years.
• Grain handlers often pass these fees through in handling tariffs. That means farmers could see modestly higher net prices or lower charges when they deliver grain.
• The CGC argues the change stops continued buildup of unspent funds in its revolving fund and brings fees closer to expected service demand.
• This is a proposal, not a final rule. Comments are being accepted for 15 days after the notice.