CGC to Draw Down Surplus to Avoid Fee Hikes

The Canadian Grain Commission will keep drawing down surplus funds – rather than increase its grain inspection and weighing fees – to cover the rising gap between the organization’s revenue and costs. 

In a release Wednesday, the CGC said it has used accumulated surplus funds to cover its budget shortfall since 2021 and will continue to do so until its next planned fee review in 2027. 

“Drawing on the accumulated surplus will avoid new fee increases for the next three years, while ensuring our programs and services continue to deliver results for the grain sector," said David Hunt, CGC Chief Commissioner. 

According to the release, the CGC grain inspection and weighing fees are automatically adjusted on April 1 each year by the 12-month percentage change to Statistics Canada’s consumer price index, which measures the Canadian inflation rate. Over the past few years, the adjustments have not kept pace with lower-than-expected grain volumes and increased operating costs. 

Since beginning to use its surplus to cover budgetary shortfalls three years ago, the balance of the surplus has been drawn down to $112 million from $156 million. Using the surplus to cover shortfalls for the 2025-26 and 2026-2027 fiscal years is expected to erode the surplus by a further $50 to $60 million. 

The CGC said it would consult with stakeholders prior to instituting any new fee hikes down the road.