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August 06, 2018 | CBC

Farmers Criticize Canadian Government for Not Refunding Surplus

Commission earmarks $130M for industry improvements

The Canadian Grain Commission has a $130 million surplus, gained from 2012 to 2017, and plans to invest it in the industry. But farmers across the country say they've been overcharged and won't see a penny of the surplus, says a report at CBC.

That's because, in part, a refund would be illegal. 

The commission — which is responsible for establishing and maintaining the country's grain quality — collects fees from distributors, which in turn charge handling fees to farmers.

The distributors' costs have been reduced twice in the last year, but are still "slightly above the actual cost of the service provided," according to Jeff Nielsen, president of the Grain Growers of Canada, which represents grain farmers' interests in national policy development.

The surplus will be split several ways, including the creation of a $40 million contingency fund to guard against future declines in delivery volumes.

The rest, roughly $90 million, will be split between industry investments like strengthening safeguards, investing in grain quality assurance and innovation in the sector. 

Read the full report here.

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