Maximum Grain Revenue Entitlements for Crop Year 2020–2021

In a determination issued today, the Canadian Transportation Agency (CTA) ruled that revenues of the Canadian National Railway Company (CN) were above and the Canadian Pacific Railway Company (CP) were below their maximum grain revenue entitlements for the crop year 2020–2021.

December 22, 2021 – Gatineau, QC – Canadian Transportation Agency

In a determination issued today, the Canadian Transportation Agency (CTA) ruled that revenues of the Canadian National Railway Company (CN) were above and the Canadian Pacific Railway Company (CP) were below their maximum grain revenue entitlements for the crop year 2020–2021.

CN now has 30 days to pay the amount by which it exceeded its 2020–2021 revenue entitlement and a five percent penalty of $119,984. 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.

CN and CP moved record amounts of grain this crop year

In the 2020–2021 crop year, 52,334,795 tonnes of Western grain were moved – 9.0 percent more than the volume moved during the previous crop year and the highest volume ever on the record.

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.