This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
12/27/2022
The Canadian Transportation Agency has determined that CN and Canadian Pacific exceeded their maximum grain revenue entitlements for the crop year 2021-2022.
CN's grain revenue of CA$592,208,589 was CA$3,068,088 above its cap of CA$589,140,501. CP's grain revenue of CA$515,508,638 was CA$2,363,775 above its cap of CA$513,144,863.
The railroads now have 30 days to pay the amount by which they exceeded the revenue caps, in addition to a 5% penalty of CA$153,404 for CN and CA$118,189 for CP, CTA officials said in a press release. The payments will go to the Western Grains Research Foundation, a farmer-financed and directed organization to fund research that benefits Prairie farmers.
In the 2021-22 crop year, 28,383,726 tonnes of western grain were moved, which represents a 46% volume decline compared with the previous crop year. The notable drop was due mainly to the drought conditions in western Canada during the 2021-22 growing season.
The revenue entitlement or cap is a form of economic regulation that enables CN and CP to set their rates for services, provided the total amount of revenue collected from their shipments of western grain remains below the ceiling set by the CTA.