The two major railways will not face penalties for excess income from grain movement in the crop year ending last August 1st.
The Canadian Transportation Agency has ruled that CN Rail and CP Rail received grain rate income well below the maximum revenue entitlement.
CN Rail was 371 thousand dollars below its maximum revenue entitlement of 933 million dollars and CP Rail was 764 thousand dollars below its maximum revenue entitlement of 863 million dollars.
The two railways moved over 46 million tons of grain in the last crop year, 13.4 percent more than the volume moved during the previous crop year.
The maximum revenue entitlement is based on a formula in the Canada Transportation Act.
In previous years when the railways had excess income, the excess funds plus penalty is paid to the Western Grains Research Foundation, a farmer directed organization set up to fund research to benefit prairie farmers.
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