Bill C-49, to Give Canadian Grain Farmers a Reliable, Efficient Transportation System

The Transportation Modernization Act (Bill C-49), which received Royal Assent on May 23, is a long-term solution that gives Canadian grain farmers a strong, reliable and efficient transportation system so they can get their products to market safely and in a timely manner.

OTTAWA -- Canada's hard-working grain farmers rely on an efficient and reliable rail system for getting their products to market. The Transportation Modernization Act (Bill C-49), which received Royal Assent on May 23, is a long-term solution that gives Canadian grain farmers a strong, reliable and efficient transportation system so they can get their products to market safely and in a timely manner. The Government understands how important grain farmers are to the continued growth of the Canadian economy, particularly in rural communities, and wanted to have the Transportation Modernization Act in place before the next crop year.

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"Our government fully understands the importance of Canada's grain farmers to the growth of our economy, our rural communities and the middle class. With the passage of the historic Transportation Modernization Act, we are providing a strong and long-term solution for Canada's farmers to reliably get their products to market, helping to put more money in their pockets and meet the growing demand for Canada's top quality grain. I thank our grain industry leaders for all their hard work – this is a milestone achievement for the long-term growth and success of the sector," said Lawrence MacAulay, Minister of Agriculture and Agri-Food.

The Transportation Modernization Act was built from extensive consultations with stakeholders, including many representatives of the agricultural sector. It includes a number of new tools and benefits for the grain industry, such as establishing reciprocal penalties between railway companies and their customers, and clarifying the definition of "adequate and suitable" service.

"Grain farmers are pleased to welcome the passage of this historic Bill. C-49 will improve the long-term competitiveness of the grain supply chain and we look forward to using these new tools in the next crop year," said Art Enns, Vice President, Grain Growers of Canada.

The Government's bill will also:

• Permit the Canadian Transportation Agency to initiate investigations into issues facing the supply chain with the approval of the Minister of Transport;
• Add soybeans as an eligible crop under the Maximum Revenue Entitlement; and,
• Allow shippers to use the new Long-Haul Interswitching remedy, even if they are served by more than one railway or are within 30 km of an interchange, if the railway or interchange is not in the reasonable direction of their movement.

On average, half of the grain produced in Canada is exported beyond our borders. Grain accounts for $20 billion in Canadian exports per year. Grain exports accounted for nearly $21 billion in 2017 (not including forages and fractions such as meals/oils/flours).

SOURCE Agriculture and Agri-Food Canada