Facts for Farmers, 6 of a series
The CGC and the Canada Grain Act
Facts on the Canada Grain Act
Canada's grading system exists by law.
Under the authority of the Canada Grain Act the system separates grain into groups, each defined by standards of quality. Regulations to the Act establish statutory grades for most grain sold domestically and for export. The CGC recommends and sets grain grades and standards and operates a fair and impartial grading and inspection system for Canadian grain. The Canada Grain Act states how grades can be changed or eliminated, how new ones are added, and who is responsible for investigating, reviewing and approving grade changes.
By law, Canada's grading system is designed to reflect the quality of grain and to meet the need for efficient marketing to domestic and international markets. Grain grades predict the end-use quality of grain, helping customers make purchasing decisions. The grading system relates price to quality. Grains are bought and sold according to statutory grade names and numbers. The grading system keeps grain with similar qualities together, making transportation and bulk handling efficient and cost-effective. Because of grain grades, the quality of each shipment of Canadian grain is consistent throughout.
The CGC licenses grain dealers and elevator companies.
The purpose of licensing is to ensure that companies meet the requirements of the handling system and their financial obligations to farmers and owners of grain. The Act gives the terms and conditions companies must follow to be licensed and provides a way for farmers to make claims when a licensee fails to pay.
The Canada Grain Act protects grain quality by regulating the conditions under which grain is treated and handled.
It stipulates the equipment licensees use for weighing, sampling, inspection and grading, and how it should be maintained. Licensees are responsible for preventing grain from deteriorating in the elevator, and the CGC can direct them to treat grain for pest infestations. At the primary elevator, the law prohibits receiving grain under certain conditions.
The law regulates grain inspection and weighing at terminal elevators. By law, the CGC registers and cancels grain elevator receipts as grain moves into and out of terminal elevators.
The law regulates transactions at the primary elevator.
It defines the rights and responsibilities grain farmers have when they deliver their crop, negotiate the grade, sell their grain, have it shipped by producer car, or make a claim when a licensee fails to pay.
Summing up
The Canada Grain Act governs many aspects of the grain industry in Canada. Because of the Act, the quality and quantity assurance system is fair and impartial to farmers and to all parties in the grain industry. In international markets, the Act contributes to Canada's ability to compete. It protects grain quality and provides for an efficient and dependable system of grain grading. The result? A reputation for quality that helps sell the grain you grow.
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: 2002-04-15