The Canadian Grain Commission has confirmed its user fees will be reduced as of August 1, 2017, in an effort to minimize further accumulation in the CGC’s user fee surplus.
“Reducing these fees means that millions of dollars will remain in the grain sector, where it can benefit producers and grain handling companies,” notes Patti Miller, chief commissioner of the CGC.
The change is expected to result in savings of approximately $10 million for the 2017 to 2018 fiscal year based on a projected grain handling volume of 34.4 million metric tonnes.
- The fee for official inspection of grain discharged to ships will be reduced from $1.70 to $1.35 per tonne
- The fee for official weighing of grain discharged to ships will be reduced from $0.16 to $0.07 per tonne
- The fee for official inspection of railway cars, trucks or containers will be reduced from $153.43 to $121.12 per inspection
- The fee for official weighing of railway cars, trucks or containers will be reduced from $14.78 to $6.67 per railway car, truck or container
- Two supplementary fees for overtime related to official grain inspection services are being eliminated.
The commission’s user fee surplus has grown to more than $120 million during the current five-year fee schedule, which started in 2013. The commissioners have proposed a new formula to reduce user fees for the next five-year cycle, set to begin on April 1, 2018.
Consultations have also been held on what to do with the current surplus.
The CGC issued a statement on Wednesday confirming what we originally reported here on RealAgriculture last month — that a fee reduction was coming for the new crop year.