It’s a sure thing that farmers will see Canadian Grain Commission fees increase in the near future.
The question that remains is how much?
The grain commission has not raised fees since 1991, so nobody in the industry is likely to doubt the need.
Back then, the commission’s charges covered about 90 percent of its costs, but rising expenses have pushed the yearly deficit higher. Last year, the federal government paid $54 million to make up the shortfall.
But the commission plan seems to ignore that many others besides farmers and the grain industry benefit from its services.
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The commission wants to recover 100 percent of its costs through fees, and that has made many in the grain industry rightfully nervous.
In theory, that could push an additional $50 million in costs per year, or about $1.50 per tonne, onto the backs of farmers.
A more fair division of costs would increase fees in cases of direct benefit and use public money to fund services that offer a wider public benefit.
Key services the grain commission provides include:
• grain grading and inspection;
• scientific research on grain quality and grading and safety assurance;
• producer protection when delivering to licensed grain handing facilities through bonding requirements and sample testing;
• protection of Canada’s reputation as a consistent and reliable exporter;
• regulating grain quality standards;
• regulating grain safety standards through testing and certification of producer deliveries;
• issuing grain quality analysis reports and export quality reports;
• accrediting third party auditors of grain quality and assurance systems.
Commission services that focus on safety and research clearly benefit a wider group than just farmers and the grain industry. Food safety is a top concern among a large percentage of consumers. As such, it’s fair to ask taxpayers to help fund projects in this area.
Research, as well, extends benefits across a wide range of interests and deserves to be funded from the public purse. Research has also been shown to have extensive spin-off effects that reach well beyond the initial beneficiaries of the funding.
Commission services that protect Canada’s international reputation as a reliable supplier are also of benefit to a wider public.
In addition, questions have been raised about the commission’s continued ability to properly function under total cost recovery. Can it continue to provide the best inspection services and be focused on quality and safety if its prime directive is complete cost recovery?
To its credit, the grain commission has taken sound steps in gathering suggestions from the industry before proceeding. As well, the proposed plan would increase the fees gradually at a rate of 1.6 percent beginning in 2012-13 and until 2016-17.
But just as it is fair for the commission to institute fee increases to cover increased expenses incurred during the past 15 years, it is also fair to ask society at large to pay its fair share.
Those who benefit both directly and indirectly all have a stake in ensuring a strong, safe and efficient system.
Bruce Dyck, Terry Fries, Barb Glen, D’Arce McMillan and Joanne Paulson collaborate in the writing of Western Producer editorials.
