May 2, 2017
For immediate release
APAS calls for producer focus in addressing Canadian Grain Commission accumulated surplus
The Agricultural Producers Association of Saskatchewan has recommended that the Canadian Grain Commission focus on three areas of concern to producers in allocating an estimated surplus of over $95 million in their submission to a CGC consultation on the surplus.
“These surplus funds were generated from user fees paid by producers in years of record grain production, and the Commission needs to focus on priorities that benefit all grain producers in allocating this surplus”, explained APAS President Todd Lewis. “It appears that a producer refund is neither legally possible, or administratively practical”.
The first APAS priority outlined in the submission is a request for the Commission to review and update grain quality factors and grading systems. “Our members are very concerned that the current quality factors and grading systems are not always consistent” Lewis said, “producers have increasing issues with the accuracy and reliability of grain grading at primary elevators. The use of new grading techniques such as falling number and vomitoxin testing are common practice in the trade, but are absent from CGC grades.”
The second APAS priority is for the Grain Commission to review the current bond based producer payment security system, and look at possible options, such as a payment protection fund.
The third priority is for the CGC to consult and consider expansion of its mandate to enhance producer protection and transparency in the grain trade. These measures would include generic grain contracts, similar to those used in Australia, improved complaint accountability and follow-up, as well as increased auditing and transparency of weigh scales and other measurement equipment.
The submission discusses opportunities to expand the CGC statistical reporting program to better enable producers and other market participants to make informed marketing decisions.
The APAS submission also calls for more due care from the CGC in setting fees in future. “the accumulation of this surplus was an unintended consequence of our record grain production, Lewis concluded,” we need to ensure that CGC user fees are fair to producers, while maintaining the crucial work of the Grain Commission.”
- APAS Submission to the CGC Accumulated Surplus Consultation.pdf
- APAS Submission to the CGC 2017 User-fee Consultation.pdf
For further information contact Todd Lewis at 306 537 6561