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Producer input sought on Canadian Grain Commission user fee surplus

Mar 3, 2017 | 1:13 PM

LETHBRIDGE –  The $107 million accumulated surplus from Canadian Grain Commission (CGC) user fees has been a sore point for the Western Canadian Wheat Growers Association.

The association is pleased with the commission’s 60-day consultation to reduce user fees and examine different ways to deal with the surplus, which was accumulated due to a larger volume of grain sold than originally projected.

Association president Levi Wood would like to see a larger decrease made immediately. However, he says they’re not asking for cuts to services, but want the fees to reflect more closely what their costs are. 

Grain producers have until May 1, 2017, to provide input on the Commission’s user fee update proposal, and on what to do with the surplus funds. 

Feedback is welcomed from grain producers, farm groups, licensed grain companies and industry associations on the Commission’s proposal to update its user fees and service standards. The reduced user fees will be for most of the CGC services, after the current five-year user fee review cycle ends on March 31, 2018. The updated fees would take effect on April 1, 2018.

Producers can offer comment on the CGC website.

Comments received during the discussion period will be reviewed before options for use of the available surplus are presented to the Minister of Agriculture.

As a result of higher than expected grain volumes and lower than expected spending, the CGC reported an accumulated surplus of $95.9 million in the 2015 to 2016 fiscal year. As of September 30, 2016, the accumulated surplus was pegged at $107.2 million.

Producers will also have an opportunity to offer input on the potential use of the accumulated surplus and can also access the CGC website for this procedure.

When the consultation period has concluded, the CGC will review all stakeholder input and make a formal proposal through the Canada Gazette process.