Canadian Grain Commission uses surplus to avoid increase in fees

Since 2021, the Canadian Grain Commission has been addressing a gap between revenue and costs, which emerged from lower-than-expected grain volumes. Despite reduced official inspection and weighing fees, grain volumes have not met projections, leading to increased financial pressure.

To manage this, the Canadian Grain Commission has decided to use its accumulated surplus to cover anticipated shortfalls for the current and next two fiscal years, instead of increasing fees.

After its 2024 fee review, the Canadian Grain Commission determined that the current fee structure will not cover operating costs in the future.

Fees are automatically adjusted annually on April 1, based on the 12-month percentage change in the Consumer Price Index. However, these adjustments have not kept pace with the challenges of lower grain volumes and rising operational costs.

The Commission has been using surplus funds to bridge this financial gap and will continue to do so until its next fee review, planned for 2027. By drawing on this surplus, the available balance is projected to decrease to approximately $57 million by March 31, 2027, which includes $40 million reserved for operating contingencies.

“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." said David Hunt, Chief Commissioner of the Canadian Grain Commission.

The Canadian Grain Commission has used surplus funds to cover budget shortfalls since 2021.  The surplus balance decreased from $156 million to $112 million.

The surplus is expected to be further reduced by $50 to $60 million by the end of the 2026-2027 fiscal year.

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