Grain Commission Proposes Licensing Producer Car Facilities and Feed Mills

The Canadian Grain Commission is proposing licensing producer car loading facilities and agents who use producer car loading sites. The CGC also wants more feedback on licensing feed mills to ensure producers get paid for grain deliveries.

Under the proposal published on Tuesday, producer car loading facilities would be licensed as a new subclass of primary elevators, but would not be required to post security or a bond with the CGC.

The commission says increased use of producer cars has “exacerbated the following gaps in oversight”:

  • The CGC is currently unable to capture data from producer railway car loading facilities, causing a gap in data published in statistical reports about the movement of grain in Canada.

  • Producers receive inconsistent treatment with respect to deliveries at producer railway car loading facilities compared to deliveries at licensed elevators. The CGC has oversight of weighing equipment at licensed elevators and producers receive consistent delivery documentation with respect to grain type and weight. We do not have this oversight at producer railway car loading facilities, and producers do not receive consistent delivery documentation with respect to grain type and weight.

  • Producers receive inconsistent treatment from the CGC with respect to disputes with producer railway car loading facilities compared to disputes with licensed elevators. Producers who deliver to licensed companies can avail themselves of Canadian Grain Commission dispute arbitration. Producers do not have access to this right when dealing with unlicensed companies such as producer railway car loading facilities.

Agents who use producer car loading sites would be licensed as either a primary elevator or a process elevator, and would be required to provide security as a condition of licensing.

As for feed mills, after consulting with industry over the last few years, the CGC is now proposing licensing mills that purchase more than 5,000 tonnes of grain per year. Feed mills that buy less than 5,000 tonnes on a five-year average would remain exempt. The commission would create a subclass of its process elevator license for feed mills.

For more detail, you can read the CGC’s proposal here.

The consultation period runs through seeding season, with a deadline of June 3rd.

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