Canaryseed Added as Regulated Grain

Summary#

These final Regulations Amending the Canada Grain Regulations (SOR/2021-113) add canaryseed to the list of seeds treated as “grain” under the Canada Grain Act. The change, registered June 1, 2021 and published June 9, 2021, takes effect on August 1, 2021 and makes canaryseed eligible for Canadian Grain Commission services and payment protection.

What it does#

• Adds canaryseed to the list of seeds designated as grain in subsection 5(1) of the Canada Grain Regulations.
• Makes canaryseed deliveries eligible for the Canadian Grain Commission’s Safeguards for Grain Farmers Program (payment security) and for binding grade and dockage determinations by CGC inspectors.
• Means canaryseed will be included in official grading and inspection services. (A separate regulatory package will add the specific canaryseed grading table to Schedule 3.)
• Sets the coming-into-force date as August 1, 2021 (or the day of registration if the rule is registered after that date).

Who's affected#

• Canaryseed farmers. Most Canadian canaryseed is grown in Saskatchewan; averages are about 132,200 tonnes on roughly 242,400 acres in recent years.
• Grain handlers and buyers: there are 28 registered canaryseed buyers, of which 25 were already licensed by the CGC and 3 were not. The three unlicensed buyers may need to get a licence to continue buying canaryseed.
• The Canadian Grain Commission, which will extend its inspection, grading and safeguards to canaryseed.
• Buyers and licensees may face new costs tied to posting security and reporting. It is unclear whether and how much of those costs dealers might pass back to producers.

Why it matters#

• It gives canaryseed producers the same payment protection and official grading support that other regulated grain growers already have. That protection proved important after company failures in 2019 and 2020, when canaryseed growers were left unpaid (in 2019, 44 producers were unpaid for more than $2 million).
• Official grades and inspection can make it easier to market canaryseed at home and abroad, since buyers get consistent, binding information on quality.
• There is an estimated annual industry cost of $180,138 for implementing the change (mostly for licensees to obtain security and adjust paperwork). Some of that cost could be passed on to producers, though the regulation itself does not set prices.
• Overall, the change aims to reduce the financial risk for canaryseed farmers and strengthen confidence in Canadian canaryseed in trade.