Bill C-30, the Fair Rail for Grain Farmers Act, has received Royal Assent.
After weeks of debate, the legislation designed to ease the backlog of grain in Western Canada has passed.
A bumper crop in Western Canada and a cold winter had left farmers with millions of tonnes of grain stuck in bins and terminals, with no way to get it to market and turn the potentially lucrative crop into cash.
Both Canadian National and Canadian Pacific Railway have been under a federal order since March to move at least 11,000 grain cars per week or risk fines of up to $100,000 per day.
The new act extends the minimum volumes until Aug. 1.
Regulations to accompany the new legislation is expected to provide a more clear definition of acceptable service, guidelines for service agreements between the railways and shippers.
Agriculture minister Gerry Ritz promised the draft regulations “very, very soon.
