September 26, 2018


Canadian Grain Commission maintains licensing exemptions for local feed mills


The Canadian Grain Commission will continue to exempt Canada's feed mills, agents with primary or process elevator facilities and producer railway car loading facilities from licensing requirements, the organisation announced in mid-September.

Following consultation, the commission determined that grain handlers that fall under one of those three categories may operate without a Canadian Grain Commission license as long as they continue to meet conditions associated with their respective exemptions. This decision reflects the clear feedback provided by stakeholders, as well as an analysis of the relative risks these types of operations pose to producers and the grain quality assurance system, the commission explained.     

The approach will also allow the commission to maintain the quality, safekeeping, and efficient handling of Canadian grain without increasing costs and regulatory burden for the grain sector.

"The Canadian Grain Commission is committed to working with all stakeholders to ensure our rules and regulations meet the needs of the Canadian grain sector," Patti Miller, chief commissioner of the organisation, said.

Based on the Canada Grain Act, the commission is able to license or exempt grain companies from licensing if their businesses meet certain legislated requirements. Both objectives for licensing are developed to protect the interests of grain producers and  maintain Canada's grain quality assurance system.

In 2016, the commission conducted a consultation on proposals to license feed mills, agents and producer railway car loading facilities.

The majority of stakeholders who responded to the feedback were opposed to the proposed licensing changes. Further analysis confirmed that producer payment complaints involving these types of operations are rare and that the risks to Canada's grain quality assurance system of exempting these types of operations are low.

In accordance with its recent announcement, the Canadian Grain Commission will exempt producer railway car loading facilities from the licensing requirements of the Canada Grain Act by annual order.

Feed mills and agents will continue to be exempt from licensing by regulation.

- Government of Canada