The Canadian Grain Commission is proposing to reduce service fees collected for 4 official grain inspection and official grain weighing services on August 1, 2021.
This proposal is in response to the sustained growth in grain export volumes in recent years and aims to better align fee revenues with fixed service delivery costs.
“The Canadian Grain Commission proposal to substantially reduce fees is great news for the entire grain sector. These changes will ensure fees are adjusted to better reflect the cost of service delivery and, ultimately, help to keep more money in the pockets of our grain producers,” said Minister of Agriculture and Agri-Food Marie-Claude Bibeau.
These changes would result in a combined reduction for official inspection and weighing services fees from $1.48 to $1.05 per tonne for ships, and a cost decrease of $37.88 per official inspection and weighing services for a railway car, truck, or container. The proposed reduction comes two years before the end of the current fee review cycle.
For fiscal year 2021-22, fees paid by grain sector stakeholders would be reduced by approximately $13.79 million, a cost decrease of 19%. Savings for the 2022-23 and 2023-24 fiscal years are expected to be approximately $20.68 million each year, a cost decrease of 29%.
“We are lowering service fees early in response to the growth in grain export volumes. Reducing these fees will ensure that millions of dollars remain in the grain sector to the benefit of the entire value chain over the next three years," added Doug Chorney, Chief Commissioner, Canadian Grain Commission
The proposed changes require amendment to the Canada Grain Regulations. They will be published in the Canada Gazette, Part I for public comment on May 22, 2021 and stakeholders have until June 7, 2021, to provide feedback.