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Last week, the Canadian Transportation Agency announced Canadian National Railway Co.’s and Canadian Pacific Railway’s western grain revenue exceeded caps for crop year 2005-2006 — the first time both Class Is surpassed their caps during the same crop year.

CN’s western grain revenue totaled $398 million, more than $2.7 million above its cap; CPR’s grain revenue totaled $396.5 million, nearly $1.5 million above its cap.

In 2000, the Canadian government established revenue caps for moving grain via rail from western prairie origins to terminals in Vancouver and Prince Rupert, British Columbia; Thunder Bay, Ontario; and Churchill, Manitoba. Under federal regulations, CN and CPR must pay their respective excess amounts, plus a 5 percent penalty, to the Western Grains Research Foundation by January’s end.