Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain: SOR/2024-93
Canada Gazette, Part II, Volume 158, Number 12
Registration
SOR/2024-93 May 17, 2024
CANADA GRAIN ACT
The Canadian Grain Commission makes the annexed Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain under paragraph 118(h) of the Canada Grain Act footnote a.
Winnipeg, May 16, 2024
David Hunt
Chief Commissioner
Patty Rosher
Assistant Chief Commissioner
Lonny McKague
Commissioner
Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain
Amendments
1 (1) The portion of subsection 1(1) of the Order Respecting the Calculation of the Moisture Shrinkage for Grain footnote 1 before the formula is replaced by the following:
Calculation
1 (1) The percentage of moisture shrinkage for tough, damp, moist or wet grain that is artificially dried at the producer’s request at a licensed primary or terminal elevator is the percentage determined by the formula
(2) Subsection 1(3) of the Order is replaced by the following:
Weight of grain
(3) The grain’s moisture shrinkage must be calculated on the basis of the weight of the grain that is recorded by the elevator manager when it is delivered to the licensed primary or terminal elevator for artificial drying.
Coming into Force
2 This Order comes into force on August 1, 2024, but if it is registered after that day, it comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
The Canadian Grain Commission (CGC) has received several inquiries from eastern industry stakeholders regarding the CGC’s moisture shrinkage calculation in the Order Respecting the Calculation of the Moisture Shrinkage for Grain (the Order) and its application. In particular, some Ontario producers have voiced concerns about moisture shrinkage calculations for corn at country elevators. Although the CGC is not able to respond to these concerns at country elevators in Eastern Canada (where they are regulated by the provincial government), the CGC can make the Order applicable to producer deliveries made directly to CGC-licensed terminal elevators in Eastern Canada.
Objective
The objective of the Order Amending the Order Respecting the Calculation of the Moisture Shrinkage for Grain (the amendments) is to provide regulatory consistency for producers and improve responsiveness to sector needs.
Description
The CGC amends subsections 1(1) and 1(3) of the Order so that it applies to CGC-licensed terminal elevators, in addition to CGC-licensed primary elevators.
In February 2023, the CGC consulted with relevant grain sector stakeholders, including all licensed terminal elevators in Canada and eastern Canada producer associations. All stakeholders supported extending the application of the Order to licensed terminal elevators, but a concern was raised about the proposed July 1, 2023, implementation date. Changing the drying discount methodology for each commodity handled by a terminal elevator requires upgrades to terminal elevator grain accounting software, and some terminals had already purchased some grain for the 2023–2024 crop year, with contract terms based on their existing moisture methodology.
To accommodate this situation, the CGC made the decision to amend the Order effective August 1, 2024. At the March 2023 Western and Eastern Standards Committee meetings, the CGC communicated the amendments, including the updated implementation timeline. No concerns were raised at that time.
However, in August 2023, one stakeholder was concerned that the amendments may put some CGC-licensed terminal elevators in Quebec on an uneven playing field with country elevators in Quebec that have drying equipment. Some terminal elevators in Quebec do not have dryers but currently assess a moisture shrinkage fee to manage risk associated with damp or tough grain deliveries. After several discussions and clarifications about the application of moisture shrinkage fees versus blending fees, a resolution was reached and no concerns remain with the amendments.
One-for-one rule and small business lens
The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to business. Analysis under the small business lens determined that the amendments will not impact small businesses in Canada.
Implementation, compliance and enforcement, and service standards
The amendments will come into force on August 1, 2024, but if the amendments are registered after that day, they come into force on the day on which they are registered.
Contact
Derek Bunkowsky
Chief Grain Inspector for Canada
Industry Services
Canadian Grain Commission
Telephone: 204‑297‑8541
TTY: 1‑866‑317‑4289
Email: derek.bunkowsky@grainscanada.gc.ca