The Canadian Grain Commission will continue to use its surplus to cover budget shortfalls and avoid potential fee increases until 2028, the federal agency announced Monday, Oct. 27.
Why it matters: Freezing fee increases helps the bottom-line of Canadian farmers
Expressing the CGC’s commitment “to being part of the success and sustainability of Canadian agriculture,” Chief Commissioner David Hunt said, “we recognize the grain sector is going through a period of economic stress and want to do our part to keep costs down while ensuring we continue to deliver results to producers and industry.”
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The CGC previously announced it would use surplus funds to cover expected operating shortfalls until 2027, with the latest announcement extending that period of frozen fees until April 1, 2028. “In support of the Government’s priority to spend less on operations, the Canadian Grain Commission is also committing to find and implement cost-saving measures ahead of potential fee changes,” said the news release.
The CGC operates as a revolving fund, charging service fees to fund most of its operations. Currently, fees are not sufficient to cover costs.
After completing a review of its costs and fees in 2024, the CGC found that current fee levels will not cover operating costs going forward.
The CGC has used accumulated surplus funds to manage the growing gap between lower-than-projected revenue and increasing costs since 2021.
Successive years of surplus draw are projected to reduce the available balance from C$156 million in 2021 to approximately C$57 million by March 31, 2028. This includes $40 million previously set aside as an operating contingency, said the release.
The CGC will consult with stakeholders before making any future fee updates.
