The Canadian Grain Commission (CGC) plans to reduce fees for grain inspection and weighing services for producers, likely saving them almost $14 million in 2021-22 and nearly $20 million in future years.
These are changes that the Agricultural Producers of Saskatchewan (APAS) is pleased about since the organization has been calling for more transparency in the system, so for CGC to respond to that request is good news for producers in Saskatchewan and Canada, according to president Todd Lewis.
The proposed changes go into effect Aug. 1.
CGC says the fee reductions are in response to growth in grain experts and should align fee revenues with fixed-service delivery costs. Proposed fee reductions include cutting the cost of inspection and weighing service fees to $1.05 per tonne from $1.48 for ships and cutting costs to $37.88 per official inspection and weighing services for railways cars, trucks, or containers.
The federal government estimates that reducing these fees will cut costs in the 2021-22 fiscal year by roughly $13.79 million or 19 per cent. It also estimates that the cost savings will increase by roughly $20.68 million or 29 per cent in the 2023-24 fiscal years.
“These savings will allow producers to invest more in their operations, and we thank (federal) Minister (Marie-Claude) Bibeau for reducing fees on this essential service for our producers,” said Lewis. “This fee reduction is the result of good work by Chief Commissioner Chorney and the staff at the CGC.”
Public comment on the proposed changes will occur on Saturday, May 22, in the Canada Gazette, and stakeholders can submit their feedback until June 7.
APAS encourages its members to engage in the consultation process since these fee reductions mean more money in producers’ pockets.