Canaryseed Added to Canada Grain Act

Summary#

The government published a proposal called the Regulations Amending the Canada Grain Regulations to add canaryseed to the list of grains covered by the Canada Grain Act. If adopted, canaryseed would get official grading standards and producers would become eligible for payment protection and other services from the Canadian Grain Commission. The proposal was slated to come into force on August 1, 2021, and the public comment period was 30 days after publication.

What it does#

• Adds canaryseed to the list of seeds designated as grain in the Canada Grain Regulations, so it falls under the Canada Grain Act.
• Adds a canaryseed grading table to Schedule 3 with one standard grade described as "Reasonably well matured, cool and sweet" and specified quality limits.
• Makes canaryseed deliveries eligible for the Safeguards for Grain Farmers Program and for binding grade and dockage determinations and other inspection services from the Canadian Grain Commission.
• Estimates the rule would come into force on August 1, 2021 (if adopted as proposed).

Who's affected#

• Canaryseed farmers, especially in Saskatchewan, which produces most of Canada’s canaryseed (average 132,200 tonnes on about 242,400 acres in recent years).
• Companies that buy and handle canaryseed. There are 28 registered canaryseed buyers; 25 of them are already licensed by the Canadian Grain Commission and 3 are not.
• The three unlicensed buyers would face licensing costs if they want to keep buying canaryseed. The proposal estimates an overall industry cost of $180,138 per year.
• The Canadian Grain Commission, which would provide the grading and compensation services (the agency already has the lab capacity).
• In 2019, a licensed company’s failure left 44 canaryseed producers unpaid for more than $2 million; that example motivated this proposal.

Why it matters#

• Adds payment protection: canaryseed growers would be able to claim against CGC-held security if a licensed buyer fails to pay. That addresses the real risk shown in 2019 when some producers were unpaid.
• Gives an official grade and testing standard. That can help farmers and buyers market canaryseed more reliably at home and abroad.
• There are extra costs for some grain companies (estimated additional security and administrative costs). The proposal estimates industry-wide security related to canaryseed at about $12,575,343, with an estimated annual cost of obtaining that security of $125,753 (about $4,491 per buyer on average). Those costs could, in part, affect prices or fees.
• The change is meant to reduce the financial risk for producers and strengthen confidence in canaryseed trade, but it may shift some costs onto handlers or buyers.