Sask Wheat supports proposed CGC fee reduction for official inspection and weighing services

Saskatoon (May 20, 2021) - The Saskatchewan Wheat Development Commission (Sask Wheat) welcomes the proposal from the Canadian Grain Commission (CGC) to reduce service fees for official inspection and weighing services in light of the continued growth in grain export volumes and the CGC’s surplus.

“The profitability of wheat producers in Saskatchewan is directly impacted by the user fees set by the CGC as these fees are ultimately passed from grain companies to producers as a part of the costs they face to export their commodities” said Sask Wheat Chair Brett Halstead. “Ensuring the fee setting process accurately reflects inspection and weighing volumes is crucial to prevent producers from being overcharged.”

The CGC estimates the proposal would reduce fees by almost $14 million in 2021-2022 and just over $20 million for the next two fiscal years.

As part of Sask Wheat’s response to the Canada Grain Act review consultations, Sask Wheat had requested the CGC immediately start a review of its user fees and fee setting methodology to account for increasing production and export trends to prevent producers from being overcharged and the CGC’s surplus from continuing to grow. Sask Wheat is pleased to see the CGC has increased its official inspection and weighing grain volume forecast; however, Sask Wheat continues to encourage the CGC to evaluate its fee-setting methodology and the decision to hold annual forecasted volumes constant. 

Sask Wheat also believes additional federal funding should be provided to the CGC. Currently, the CGC relies on service fees to fund approximately 90 percent of its operating costs, although many activities of the CGC, such as the Grains Research Lab (GRL), provide important public goods for the country. Through Sask Wheat’s Canada Grain Act review submission, Sask Wheat called on the Federal Government to review appropriation funding levels for CGC and GRL activities to ensure they accurately reflect the benefit provided to the Canadian public.

The proposed user fee changes will be published in the Canada Gazette, Part 1 on May 22, 2021, and will be open for public comment until June 7, 2021. Sask Wheat encourages all producers to get involved in the consultation and will provide more information on how to participate once it is available.

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To schedule interviews, please contact:

Dallas Carpenter
Communications Manager
Saskatchewan Wheat Development Commission
dallas.carpenter@saskwheat.ca
306-653-7967