Comment: Why calls to kill MRE being ignored

Comment: Why calls to kill MRE being ignored

Requests to update railway grain shipping costs face the same fate

[UPDATED: June 20, 2018] The North American Grain Grading Group’s (NAGGG) call to axe the maximum revenue entitlement (MRE) appears to be getting the cold shoulder from Western Canada’s grain sector. The MRE is a federal regulation that sets the annual limit the railways can earn in total hauling western grain to Thunder Bay and

Dried Ear of Cereal crop in studio isolated against white background.

Proposal says end MRE, wheat grading

The North American Grain Grading Group says both get in the way of efficient markets

Scrapping the maximum revenue entitlement (MRE) and grain grading will make western Canadian grain farmers more competitive, according to the North American Grain Grading Group (NAGGG). It’s a big change, but don’t call it radical, Mary-Jane Bennett, a transportation consultant and NAGGG supporter, said in a phone interview May 30. “What they’re saying is that


Grain industry has other priorities

Western Canada’s checkoff-funded wheat commissions didn’t have much to say about a proposal to end the maximum revenue entitlement (MRE) and the grain-grading system when asked for comment last week. “Our directors are busy seeding so we haven’t discussed it,” Manitoba Wheat and Barley Growers Association general manager Pam de Rocquigny said in an interview




CN trains in Vancouver. (CN.ca)

CN, CP roll over revenue caps for 2016-17

Canada’s big two railways have both overshot the maximum revenue they’re allowed to keep for ferrying the 2016-17 grain crop off the Prairies. The Canadian Transportation Agency on Thursday issued its annual determination of how much, if any, revenue Canadian National Railway (CN) and Canadian Pacific Railway (CP) made over their maximum grain revenue entitlements


Railway costing review risks, benefits

Railway costing review risks, benefits

A review was a Liberal election promise but the government hasn’t announced one despite proposed 
changes to the maximum revenue entitlement

A University of Manitoba agriculture economist warns regulations cutting how much the railways are allowed to earn hauling grain could discourage them from investing to be more efficient. “I don’t know if you want to mess with the system too much,” Derek Brewin said in an interview May 23. “They’ve (western farmers) got a competitive

grain cars

Grain sector likes transportation act changes

Time will tell, but the industry says the Bill C-49 changes should lead to better grain service

After decades of complaining about poor rail service for grain, western farmers and shippers say Bill C-49, the Transportation Modernization Act, is close to what they’ve been asking for. Wade Sobkowich, executive director of the Western Grain Elevator Association (WGEA), which represents Western Canada’s major elevator companies, said it includes most of the changes it


Calls for a review of railway costs

Some farm groups suspect producers are paying more than was originally intended under the maximum revenue entitlement

When the railways start replacing hopper cars as expected if the Transportation Modernization Act becomes law, western farmers will pay more, in total, to ship grain to export. That’s because the maximum revenue entitlement (MRE) will be adjusted to pass on the purchase costs to shippers and ultimately farmers. Most farm and shipper groups agree

(CN.ca)

Early reviews positive for grain transportation bill

Long-awaited amendments to the Canada Transportation Act that Prairie grain farmers and shippers hope will result in better rail service were tabled Tuesday in the House of Commons. At press time Tuesday farm organization and grain company officials were still assessing Bill C-49, which also deals with other transportation issues, including air travel. At first