Canada’s two railways — CN and CPKC — should pay a mixed $7.1 million to the Western Grains Analysis Basis (WGRF) for exceeding their most grain income entitlements for the 2022-23 crop 12 months, based on a ruling issued Dec. 22 by the Canadian Transportation Company (CTA.)

CN’s grain income of $1,079.5 million was $3.46 million above its entitlement of $1,076.1 million, whereas CPKC’s grain income of $943.9 million was $3.37 million above its entitlement of $940.5 million.

Each railways now have 30 days to pay the quantity by which they exceeded their entitlement, plus a 5 p.c penalty to WGRF.

For CN, the quantity due is $3,630,836, whereas CPKC owes $3,537,877  — round $7.17 million in complete.

Beneath the Canada Transportation Act, the CTA makes use of a components that accounts for railway prices and the quantity of grain shipped to find out the utmost income entitlement (MRE) — how a lot income railways can acquire from grain shipments — on an annual foundation. Any overages should be paid, with a 5 per cent penalty, to the WGRF for farmer-directed analysis for the good thing about Prairie farmers.

The railways moved a complete of 45.3 million tonnes of Western grain in 2022-23 — a 60 per cent improve versus the drought-reduced complete of 28.4 million tonnes the prior 12 months. The railways paid round $5.7 million to WGRF for exceeding their income entitlement on the small ’21 crop.