Saskatoon, Saskatchewan, Canada
January 28, 2008
The Western Grains
Research Foundation has received a cheque for $3,077,588
from Canadian Pacific Railway (CP). This represents the amount
owed to the WGRF for the 2006-07 crop year minus the money owed
back to CP after their appeal regarding the 2005-06 crop year.
In October, the Canadian Transportation Agency ruled in favor of
a CP appeal and reduced the railway’s 2005-06 payment by
$870,783. In late December, the Canadian Transportation Agency
ruled that CP owed $3,948,371 due to exceeding the grain revenue
cap for 2006-07. The cheque received is for the difference in
the two amounts.
“CP has been flexible in not requiring the return of the
overpayment back in October,” says Lanette Kuchenski, WGRF
executive director. “This has helped WGRF avoid interest rate
penalties that would have accrued from removing the money from
long-term investments.”
Canadian National (CN) has appealed the more than $2.8 million
it paid to WGRF for the 2005-06 crop year, but a decision on
that appeal is still pending. WGRF has not yet been notified if
CP plans to appeal the 2006-07 penalty.
Under the Canada Transportation Act, when the railways exceed
their grain revenue cap, the excess plus a five per cent penalty
is paid to the Endowment Fund of the Western Grains Research
Foundation. Interest earned from the Endowment Fund is invested
in crop research for the benefit of grain producers across
Western Canada.
The Fund generates about $400,000 a year in interest. Losing the
$871,000 from the CP appeal in October will mean the loss of
about $47,000 in interest per year.
Four projects were funded this year through the Endowment Fund:
- Fingerprinting the DNA of
spring and winter wheat to help reduce the requirement for
Kernel Visual Distinguishability
- The genetics of early
maturing in Canadian spring wheat
- Designer wheat development
for the biofuels industry
- Coordinating monitoring,
forecasting and early risk warning systems for insect pests
These are all three-year projects.
All the other projects supported through the Endowment Fund can
be found at www.westerngrains.com.
Producers representing a broad cross-section of farm
organizations serve on the 16-member Board that guides WGRF.
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