CN Exceeds Grain Revenue Entitlement; CP Below

Dec 27, 2021

In a year when both national railways moved record amounts of grain, CN Rail exceeded its revenue entitlement while CP fell below it.

In a determination issued Wednesday, the Canadian Transportation Agency (CTA) ruled CN’s 2021-22 grain revenue of $1.04 billion was $2.39 million above its entitlement, while CP’s revenue of $1.01 billion was $20.2 million below.

CN now has 30 days to pay the amount by which it exceeded its 2020–2021 revenue entitlement and a 5% penalty of $119,984. Regulations require these payments to go to the Western Grains Research Foundation, a farmer-financed and directed organization to fund research that benefits Prairie farmers.

In total, 52.33 million tonnes of Western grain were moved by the railways in 2020-21, 9% more than the volume moved during the previous crop year and the highest on the record.

The revenue entitlement is a form of economic regulation that enables CN and CP to set their rates for services, provided the total amount of revenue collected from their shipments of Western grain remains below the ceiling set by the CTA. Entitlements are calculated using a formula that reflects such things as forecasted price changes for railway labour, fuel, material and capital purchases.

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Video: Veteran Farmers: A Legacy of Service in Rural America

Veterans Day is a time to honor the men and women who have selflessly protected our freedoms and values. And for some, the transition from military service to civilian life brings them back to the farm.

At Farm Bureau, we believe it’s important to not only celebrate veterans but also those who continue to make a difference in agriculture and their community. We've partnered with Farm Credit to establish the Veteran Farmer Award of Excellence to shine a light on those who have continued to go above and beyond to serve their communities.

This year, we recognize retired Colonel Joe Ricker as the inaugural Veteran Farmer Award of Excellence winner. Joe served over 30 years in the Army before retiring from the Pentagon and completing tours in both Iraq and Afghanistan. Since leaving the Army, his commitment to excellence in farming and enriching the lives of veterans has blossomed in a myriad of ways in both his local community of Wilkinson, Indiana, and across the country. Joe grows apples and raises bees on his farm in Indiana. Joe founded “Veterans IN Farming,” an organization, now with more than 1,100 members, dedicated to providing veterans in Indiana with the tools and training to succeed in agriculture.

The American Farm Bureau Federation is an independent, non-governmental, voluntary organization, comprised of and directed by farm and ranch families who engage in all types of food, fuel and fiber production.