The Western Grains Research Foundation (WGRF) has received notification from Canadian National that the railway plans to appeal the recent ruling from the Canadian Transportation Agency regarding the grain revenue cap for the 2005-06 crop year.

The CTA ruled that CN exceeded the grain revenue cap by approximately $2.7 million. Under provisions of the Canadian Transportation Act, this amount plus a penalty of five per cent (a total of more than $2.8 million) was to be paid to the Western Grains Research Foundation for the benefit of all grain producers.

CN is arguing that the CTA determination is $522,383 too high. “CN is seeking leave to appeal the decision of the Canadian Transportation Agency respecting Intermodal P&D and Demurrage adjusted amounts for which an amount of $522,383 has been included in CN’s revenue,” states Claude Mongeau of CN in a letter to the WGRF dated January 26th, 2007.

“CN has written us a cheque in the amount of $2,313,613 and is proposing that the $522,383 be held in an in-trust account pending the outcome of the appeal,” says WGRF Executive Director Lanette Kuchenski.

To date, WGRF has received no indication of an appeal from Canadian Pacific Railway. CPR was ordered to pay a total of approximately $1.6 million for exceeding the grain revenue cap.

The WGRF administers an Endowment Fund that it received from a discontinued federal farm program, which was the forerunner of crop insurance. The principle of the Endowment Fund is invested and only the interest is used to fund a wide variety of crop research.

“Organizing the fund in this way looks to the future and long-term stability of crop research in Western Canada,” notes Kuchenski.

Since 1983, almost $19 million in interest earned from the Endowment Fund has been used to fund more than 200 crop-related projects, across a wide variety of grains, to benefit all producers in Western Canada. Any money received from the railways is added to the fund, which currently stands at approximately $9.5 million.

WGRF also collects a check-off on wheat and barley, which is deducted annually from Canadian Wheat Board final payments. The check-off is used to fund wheat and barley breeding at public research centers across Western Canada.

Producers representing a broad cross-section of farm organizations serve on the 18-member board of the WGRF. More information is available at www.westerngrains.com.

RELATED RELEASE

Western Grains Research Foundation receives C$4.4 million from Canadian National and Canadian Pacific Railway