The federal government has introduced legislation that proposes amendments to the Canada Grain Act and substantial changes to the Canadian Grain Commission.
In an Oct 18 new release, Agriculture Canada said proposed amendments to the Canada Grain Act would streamline and modernize the operations of the Canadian Grain Commission and eliminate about $20 million annually in unnecessary costs from the grain handling system.
Among other things, the proposed changes include:
• the elimination of mandatory inward inspection and weighing of grains by the CGC at terminal and transfer elevators
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• the provision of optional inward inspection services, on a fee-for-service basis. The optional inspections would initially be performed by CGC staff and eventually by service providers that are authorized by the CGC
• changes to the commission’s producer payment protection program, which uses bonds posted by grain dealers to protect farmers against financial losses. The new system would use an insurance based system rather than bonds
If approved, the proposed CGC changes would take effect Aug. 1, 2013.
The commission’s role in allocating producer cars will not be changed, nor will its role in establishing and maintaining quality standards for Canadian grain.
The proposed changes are part of a federal government initiative aimed at updating the commission’s operations, eliminating unnecessary functions and increasing the proportion of overall CGC revenues that are derived through user fees.
To that end, the grain commission also plans to update user fees for the services it provides, a move that will reduce the need for government funding and move the commission to “a sustainable funding model.”
“The CGC has not raised its fees in more than 20 years,” said a fact sheet distributed by Agriculture Canada this week.
“Both producers and grain companies are aware that the user fees related to grain handling will need to be updated.
“Very shortly, the CGC will commence a new round of user fee consultations on its updated comportment of services.”
Federal agriculture minister Gerry Ritz said the proposed CGC changes are part of Ottawa’s efforts to modernize grain policy in Canada by liberalizing grain marketing, strengthening support for research and market development, and improving rail service for the agriculture sector.
“We are helping our farmers and the grain industry to fuel our economy and remain competitive both at home and abroad,” Ritz said in a news release.
“Through these changes, the Harper government is delivering on its commitment to modernize the grain sector.”
