Source: Canadian Grain Commission
Since the Canadian Grain Commission reduced its official inspection and weighing fees in 2021, the organization has inspected and weighed lower-than-expected grain volumes, leading to a gap between revenue and costs. Instead of changing its fee formula to increase fees, the Canadian Grain Commission will use its accumulated surplus to cover anticipated shortfalls this year and for the next two fiscal years.
After completing its 2024 fee review, the Canadian Grain Commission found that current fee levels will not cover operating costs going forward. Fees are automatically adjusted on April 1 each year by the 12-month percentage change to the Consumer Price Index. Over the past few years, these adjustments have not kept pace with lower-than-expected grain volumes and increased operating costs.
The Canadian Grain Commission has used accumulated surplus funds to manage the growing gap between lower-than-projected revenue and increasing costs since 2021. The organization will continue to use surplus to cover expected operating shortfalls until its next planned fee review in 2027. Together, these successive years of surplus draw are projected to reduce the available balance to approximately $57 million by March 31, 2027. This includes $40 million previously set aside as an operating contingency.
The Canadian Grain Commission will consult with grain sector stakeholders before implementing any changes to fees in the future.
Quotes
“The Canadian Grain Commission is committed to being part of the success and sustainability of Canadian agriculture. Drawing on the accumulated surplus will avoid new fee increases for the next 3 years, while ensuring our programs and services continue to deliver results for the grain sector.”
David Hunt, Chief Commissioner
Canadian Grain Commission
Quick facts
- The Canadian Grain Commission has been drawing on the accumulated surplus to cover budgetary shortfalls since 2021, drawing down the balance from $156 million to $112 million.
- Using the surplus to cover budget shortfalls due to lower-than-anticipated grain volumes for the 2025-26 and 2026-2027 fiscal years is expected to draw a further $50 to $60 million.
- The Canadian Grain Commission will consult with stakeholders before making any future fee updates.
- The Canadian Grain Commission is committed to making targeted investments in its services in accordance with its strategic plan and surplus investment framework to ensure that the organization continues to meet the needs of producers and industry.
