CGC Delays Any Potential Fee Increase Until 2028

The Canadian Grain Commission (CGC) said Monday that any potential fee increase for its services will now be delayed until 2028, as it continues to use its accumulated surplus to cover operating shortfalls.  

The move extends earlier measures aimed at easing costs for grain producers and maintaining support for the industry during a time of economic pressure, said a CGC statement. 

Operating as a revolving fund, the CGC relies primarily on service fees to finance its programs and operations. However, current fee levels have not been sufficient to cover costs. The commission had previously committed to using surplus funds to offset deficits through 2027, but the latest decision extends that timeline by another year, postponing any potential changes until April 1, 2028. 

In addition to drawing from its surplus, the CGC said it will continue to implement internal cost-saving measures in alignment with the federal government’s push to reduce operational spending, the statement said. 

“The Canadian Grain Commission is committed to being part of the success and sustainability of Canadian agriculture,” said Chief Commissioner David Hunt. “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.” 

Following a 2024 review of its costs and fees, the Commission determined that existing rates will not cover expenses in the years ahead. The CGC has been relying on surplus funds since 2021 to bridge the gap between lower-than-expected revenues and rising costs. The available balance is projected to fall from $156 million in 2021 to roughly $57 million by March 31, 2028, including $40 million earmarked as an operating contingency. 

The CGC said it will consult with industry stakeholders before implementing any future fee adjustments.