A proposal that would require producer car loading facilities and feed mills to be licensed by the Canadian Grain Commission has been put on the backburner for the time being.
CGC spokesperson Remi Gosselin told The Western Producer that the proposal to license loading sites and feed mills has been set aside while CGC commissioners deal with more pressing issues.
“Commissioners have been focused primarily on the proposal to reduce (CGC) user fees and also on the discussion on the use of (the CGC operating) surplus,” Gosselin said.
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“They have not yet reviewed the … (proposal related) to producer car loading facilities but plan to look at it in the months ahead.”
The CGC proposal to license producer car loading facilities was made public in April 2016.
Public consultations on that proposal and a similar proposal aimed at licensing feed mills generated 41 written submissions and 12 meetings with stakeholder groups.
Since then, the proposal and the commission’s subsequent review of industry comments has been temporarily sidelined.
According to a CGC document that summarized industry feedback, most stakeholders oppose the idea of licensing fed mills and loading sites.
“Stakeholders felt the proposals introduced too much red tape and administrative burden to their businesses,” the CGC summary document stated.
“They felt that licensing producer railway car loading facilities, agents, and feed mills would increase their operating costs, erode profit margins and reduce competition in the industry without providing much benefit.”
CGC officials told The Western producer last year that a decision to license producer car loading facilities would give the commission access to more accurate data on the types of grain being received and loaded by producers, as well as the volumes being handled.
It would also give the CGC oversight in other activities, such as collecting and retaining grain samples at loading sites, monitoring the quality of grain collected and ensuring that weigh scales are properly tested and maintained.
Under the proposal, producer car loading facilities would not be required to tender security as part of the commission’s producer protection plan.
However, feed mills would be subject to security requirements, similar to those that are in place for licensed primary elevators
A summary of feedback on the CGC’s proposals can be viewed at www.grainscanada.gc.ca/consultations/2016/summary-resume/licensing-feedback-en.htm.
Contact brian.cross@producer.com
