By Alice McFarlane

Grain Commission to use surplus to avoid new fee increases

Oct 17, 2024 | 3:09 PM

The Canadian Grain Commission (CGC) will use a large portion of a surplus from fees for grain inspection and weighing for a financial shortfall.

Since CGC reduced its official inspection and weighing fees in 2021, the organization has inspected and weighed lower-than-expected grain volumes, leading to a gap between revenue and costs.

CGC has been drawing on the accumulated surplus to cover budgetary shortfalls since 2021, drawing down the balance from $156 million to $112 million.

After completing its 2024 fee review, the Canadian Grain Commission found that current fee levels will not cover operating costs going forward.

CGC Chief Commissioner David Hunt said instead of changing its fee formula to increase fees it will use its accumulated surplus to cover anticipated deficits.

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“The Canadian Grain Commission is committed to being part of the success and sustainability of Canadian agriculture,” he said. “Drawing on the accumulated surplus will avoid new fee increases for the next three years, while ensuring our programs and services continue to deliver results for the grain sector.”

Using the surplus to cover budget shortfalls due to lower-than-anticipated grain volumes for the 2025-26 and 2026-2027 fiscal years is expected to draw a further $50 to $60 million.

Fees are automatically adjusted on Apr. 1 each year by the 12-month percentage change to the Consumer Price Index.

The organization will continue to use surplus to cover expected operating shortfalls until its next planned fee review in 2027. These successive years of surplus draw are projected to reduce the available balance to approximately $57 million by March 31, 2027. This includes $40 million previously set aside as an operating contingency.

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alice.mcfarlane@pattisonmedia.com

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