The Canadian Grain Commission (CGC) announced it would again draw from its surplus to "cover budget shortfalls and avoid potential fee increases until 2028."
The CGC makes most of its revenue through fees for services such as grain inspections. However, the Commission has been forced to draw from its surplus in recent years to "manage the growing gap between lower-than-projected revenue and increasing costs since 2021."
The balance will go down from $156 million in 2021 to approximately $57 million by March 31, 2028. This includes $40 million previously set aside as an operating contingency.
The CGC said this announcement "means that potential fee changes will be postponed for another year to April 1, 2028" and adds it will consult with stakeholders before making any fee updates.
This comes after a 2024 review of its costs and fees which found "current fee levels will not cover operating costs going forward."
It also comes at a time when 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" said David Hunt, Chief Commissioner of the CGC.
The CGC said its committed to "find and implement cost-saving measures ahead of potential fee changes" in support of the federal government's priority to spend less on operations.
