A new declaration system to replace KVD will go into effect Aug. 1.
But it won’t include penalties for those who break the rules.
The government has proposed a series of fines for making false statements, but they are part of Bill C-39, which was still in second reading when Parliament recessed for summer.
A farmer or other stakeholder who makes a false declaration about the grain they are delivering would still be liable for civil damages if an aggrieved party wanted to pursue the matter in court.
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But some industry groups want the replacement of KVD by a declaration-based system to be put off until penalties are in place.
“We have continued to ask that it be delayed till C-39 passes,” said Wade Sobkowich of the Western Grain Elevator Association.
Under the bill, penalties will be imposed under the terms of the Agriculture and Agri-food Administrative and Monetary Penalties Act.
It sets out penalties for individuals, ranging from $2,000 for a minor violation, $10,000 for a serious violation and $15,000 for a very serious violation.
Sobkowich said it’s likely that the $2,000 fine would be applied in the case of a farmer who accidentally misdeclared, while someone who did it on purpose would be subject to the higher fines.
C-39 also lays out severe penalties if the Canadian Grain Commission considers a false declaration, or any other violation of the act, to be serious enough to pursue criminal charges. That could include fines up to $200,000 and/or jail time for individuals and fines of up to $500,000 for corporations.
Commission spokesperson Remi Gosselin said that until penalties are in place, it will be up to the industry to manage problems that occur.
Under the new system, farmers will be required to sign a declaration that the wheat they are delivering is eligible for a specific class of western Canadian wheat.
The farmer must sign a declaration for each elevator to which they deliver grain, even if it is the same company. For subsequent deliveries throughout the year they will be required to make a verbal declaration.
Declaration forms will be available at elevators. Producer car shippers will have to download a form from the commission website at www.grainscanada.gc.ca and provide it to their producer car administrator.
Gosselin said the commission expects a smooth transition to the new system.
“We are confident the quality assurance system will remain intact with these changes,” he said.
The industry is continuing to work on developing new technologies that will identify the eligibility of wheat, but that won’t happen any time soon.
