Grain inspection and weighing fee cuts

Summary#

The Canadian Grain Commission lowered four fees in the Canada Grain Regulations, with the changes taking effect on August 1, 2021. The reductions cut inspection and weighing charges for ships and for rail cars/trucks/containers, and are expected to save industry about $55.15 million over the next three years.

What it does#

• Lowers these four fees (new rates shown):
  • Official inspection — ships: $1.00 per tonne.
  • Official inspection — railway cars, trucks, containers: $90.12 per inspection.
  • Official weighing — ships: $0.05 per tonne.
  • Official weighing — railway cars, trucks, containers: $4.96 per car, truck, or container.
• The fee changes took effect on August 1, 2021 (start of the 2021–22 crop year).
• The changes were made to reduce the Canadian Grain Commission’s revolving-fund surplus by aligning fees with a revised forecast of export volumes (about 48.1 MMT per year for 2021–22 to 2023–24).

Who's affected#

• Directly affected: licensed terminal elevators and the grain handling companies that pay official inspection and weighing fees.
• Indirectly affected: grain producers, because handlers commonly pass these costs through in handling tariffs. Lower fees could reduce those tariffs and increase what producers receive.
• The rule did not identify direct, material impacts on small businesses; the Commission said none of the 36 licensed terminal elevators are classified as small businesses.

Why it matters#

• Lower fees mean lower operating costs for grain handlers and a modest reduction in transportation-related costs for moving grain to export. The Commission estimates savings of about $13.79 million in 2021–22 and about $20.68 million in each of the next two years, totaling $55.15 million over three years.
• Those savings may be passed on to producers through lower handling tariffs, improving producer returns or handlers’ competitiveness.
• The changes are also meant to prevent continued build-up of surplus funds in the Commission’s revolving fund by matching fees more closely to expected workloads.