Moisture Shrinkage Rules Extended to Terminals
Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain: SOR/2024-93
The Canadian Grain Commission amended the Order Respecting the Calculation of the Moisture Shrinkage for Grain so the moisture-shrinkage calculation applies to CGC-licensed terminal elevators as well as licensed primary elevators. The shrinkage percentage is determined by the formula in the Order based on the weight recorded at delivery; the amendment comes into force on 2024-08-01 (or on the day it is registered if later).
- Published
- June 5, 2024
- Department
- Unavailable
- Section
- Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain
- Comment deadline
- Unavailable
- Effective date
- August 1, 2024
- Publication part
- Part II
Summary
Summary#
The Canadian Grain Commission has issued the Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain. It extends how moisture shrinkage is calculated so it explicitly applies to deliveries made to licensed terminal elevators as well as licensed primary elevators. The change comes into force on August 1, 2024 (or on the day it is registered if that is later).
What it does#
- Updates the Order Respecting the Calculation of the Moisture Shrinkage for Grain so the percentage of moisture shrinkage for grain that is artificially dried at a producer’s request is determined by the formula in the Order.
- Clarifies that the moisture-shrinkage calculation is based on the weight recorded by the elevator manager when the grain is delivered to a licensed primary or terminal elevator for artificial drying.
- States the coming-into-force date: August 1, 2024, or the registration day if the Order is registered after that date.
Who's affected#
- Producers who deliver grain directly to CGC-licensed terminal elevators and to licensed primary elevators.
- Operators of CGC-licensed terminal elevators and licensed primary elevators, who may need to update their grain accounting or drying practices.
- Producers and elevators in Ontario and Quebec may notice this more, because concerns were raised by producers in those provinces about moisture shrinkage handling at country elevators. The Order does not change provincial rules for country elevators, which remain regulated by the provinces.
Why it matters#
- It creates consistent rules for how moisture loss is calculated when grain is dried at licensed terminals, so producers know the basis for deductions when they ask for artificial drying.
- Terminal elevators may need to update software or accounting systems to match the amended calculation method, which can affect how they price or record deliveries.
- The change does not reach country elevators governed by provinces, so producers using those facilities may see no change.
Key topics
Source: Canada Gazette