Farm Groups React To CGC's Proposed Fee Changes

The Agricultural Producers Association of Saskatchewan is welcoming the Canadian Grain Commissions proposed changes to reduce fees for grain inspection and weighing services.

President of APAS Todd Lewis, says the move comes as the CGC's revenue is up due to increased handlings.

" I believe they've, you know, decreased the the fee that they're going to charge per, per ton. And with that farmers will see some savings I think 19% this year and as high as a sub over 20% in future years."

APAS says the proposed changes would save producers almost $14 million in 2021-22, and then up to $20 million in later years

Lewis gives credit to the Grain Commission for managing these accounts better.

"You know, we don't need to have a huge surpluses. In past, we've seen some very large surpluses created because of this, but it's good thing. You know that Minister Bibeau and Chief Commissioner Chorney have recognized this and are trying to change the fees."

The Canadian Grain Commission is proposing to reduce service fees for official grain inspection and official grain weighing services on August 1, 2021.

The Alberta Wheat and Barley Commissions are pleased to see the proposed reductions, but are concerned that farmers continue to be overcharged.

They says the current system is fundamentally flawed and should be a priority to change as part of the Canada Grain Act review.

Alberta Barley Chair, Tara Sawyer, says mandatory outward weighing and inspection by the CGC is a redundant service, since 70 to 80 per cent of grain contracts require a second inspection by a private, third-party company,.

"Private companies can offer this service cheaper than the CGC, yet the CGC continues to offer this duplicated service."

Todd Hames is Chair of the Alberta Wheat Commission and says it’s time for the CGC to transition away from being a service provider as their high cost of inspections is affecting our competitiveness.

In their submission to the Canada Grain Act review, the commissions recommended the CGC shift away from being a service provider to a regulator to better serve farmers. Recommendations included eliminating mandatory outward weighing and inspection services by the CGC, increased transparency in the cost of the CGC’s regulatory services, grading reform, enhanced grading dispute resolution, amongst others.