The maximum shrinkage allowance has been fixed at zero percent at licensed process and transfer elevators, as of March 19.
In other words, those elevators are not allowed to make a shrinkage deduction from deliveries of grain.
CGC chief commissioner Elwin Hermanson described this as good new for grain producers.
“They can now expect consistent deductions when they deliver grain to any type of elevator licensed by the CGC,” Hermanson said in a news release March 2.
Shrinkage refers to the loss of weight in grain during handling or treatment.
Currently, the maximum is zero percent at primary and terminal elevators. However following consultations with producers and other industry stakeholders, the CGC proposed making the rules the same at all classes of elevators.
The Canada Grain Act gives the commission the authority to regulate maximum shrinkage allowance levels at elevators.
