Facts for Farmers, 15 of a series
The CGC and producer cars
Facts on the producer cars
Producers can order rail cars from the CGC to ship their grain to market.
The CGC producer car officer receives applications for producer cars from producers and then negotiates with the Canadian Wheat Board (CWB) and the railways that supply the cars. Once the orders are accepted, the final loading instructions are sent to the producer, the administrating company—if used by a producer—and the railways. The CGC charges a fee of $20.00 per car—but no GST—which must accompany the producer car application. The application form (Adobe PDF format) is available on the CGC web site.
The CGC allocates rail cars, as available from the railways and in the order that applications are received by the CGC.
The CGC allocates rail cars available from the railways for both the CWB and non-CWB grains. For CWB grains, the CGC allocates cars based on the CWB grain and grade program. The producer must have a valid CWB delivery permit book and ensure that sufficient acreage-based or contract delivery calls are in place. For non-CWB grains, the CGC allocates cars depending on whether the producer has a confirmed sale or not. If a sale has not been confirmed, the number of allocated cars is limited to ten percent of the cars for shipment of any one type of grain to a particular destination. In all cases, CWB grain or non-CWB grain, the CGC allocates cars in each category to producers in the order the applications are received.
Producer cars are a producer's right.
Under the Canada Grain Act, grain farmers are entitled to order producer cars. Producers also have responsibilities that must be met for the system to run smoothly. It is up to the producer to make sure that the application form is completed correctly. If a company administers the process, the producer must notify the company providing the service. The CGC contacts the producer before the car is allocated to make sure the car can be loaded in a given week. Once the car order is finalized, the CGC sends loading instructions. However, the producer may have to contact the railway or administrating company directly regarding the exact date.
Producers who apply for producer cars are not covered by CGC security at producer car loading facilities or at any other location where producer cars are loaded.
Under the Canada Grain Act, elevators and grain dealers must be licensed by the CGC and post security to cover their liabilities to grain producers. The CGC exempts producer car loading facilities from these provisions, as long as they meet certain conditions. Therefore, grain handled and stored at producer car loading facilities is not protected by security held by the CGC. A list of these facilities is available on the CGC's web site. Exempted facilities also post a notice at the facility to show they are exempted. Regardless of the location at which producer cars are loaded, producers ordering producer cars deliver at their own risk.
Summing up
The CGC provides a service to producers by arranging for the transportation of their grain. Several of the services offered include: faxed initial program and final loading instructions, extended after hours contact by voice mail and fax, and credit card payment options—Visa or MasterCard.
Producers are entitled to a reinspection in the event they are not satisfied with a grade or dockage assigned by a CGC grain inspector. They may request a reinspection within 15 days following the unload date reported on the inspection certificate through their administrating company or in writing to the CGC's chief grain inspector.
When a producer car is unloaded at the terminal and the producer receives documentation, producer security takes effect.
Want to know more?
Call: 1-800-853-6705
Fax: 1-204-983-2751
Email: contact@grainscanada.gc.ca
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Last updated: 2003-07-24