Maximum Grain Revenue Entitlements for Crop Year 2021–2022
OTTAWA – December 22, 2022 - In a determination issued today, the Canadian Transportation Agency (CTA) ruled that revenues of both the Canadian National Railway Company (CN) and the Canadian Pacific Railway Company (CP) were above their respective maximum grain revenue entitlements for the crop year 2021–2022.
- CN’s grain revenue of $592,208,589 was $3,068,088 above its entitlement of $589,140,501.
- CP’s grain revenue of $515,508,638 was $2,363,775 above its entitlement of $513,144,863.
CN and CP now have 30 days to pay the amount by which they exceeded their 2021–2022 revenue entitlements, in addition to a five percent penalty of $153,404 for CN and $118,189 for CP. Regulations require these payments to go to the Western Grains Research Foundation. This foundation is a farmer-financed and directed organization to fund research that benefits Prairie farmers.
Notable drop in volume of grain moved this crop year
In the 2021–2022 crop year, 28,383,726 tonnes of Western grain were moved. This represents a 46 percent decline in volumes as compared to last crop year which saw a record 52.3 tonnes transported. The notable drop in volume was due mainly to the drought conditions experienced in Western Canada during the 2021-2022 growing season.
Determining the Maximum Revenue Entitlement
The Canada Transportation Act (Act) requires us to determine each railway company’s annual maximum revenue entitlement (MRE) and whether each entitlement has been exceeded. The revenue entitlement 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.
See our guide on the Maximum Revenue Entitlement for further information. For more information on the CTA’s maximum revenue entitlement determinations since 2000–2001, please see the Statistics on the maximum revenue entitlement for western grain.
About the CTA
The Canadian Transportation Agency is an independent, quasi-judicial tribunal and regulator that has, concerning all matters necessary for the exercise of its jurisdiction, all the powers of a superior court. The CTA has three core mandates: helping to keep the national transportation system running efficiently and smoothly, protecting the fundamental right of persons with disabilities to accessible transportation services, and providing consumer protection for air passengers. To help advance these mandates, the CTA makes and enforces ground rules that establish the rights and responsibilities of transportation service providers and users and level the playing field among competitors, resolves disputes using a range of tools from facilitation and mediation to arbitration and adjudication, and ensures that transportation providers and users are aware of their rights and responsibilities and how the CTA can help them.