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By Alice McFarlane

Agriculture Roundup

Agriculture Roundup for Thursday January 2, 2020

Jan 2, 2020 | 9:08 AM

Canadian National Railway (CN Rail) and Canadian Pacific Railway (CP Rail) had a successful shipping season during the 2018-2019 crop year.

Both companies did not exceed their maximum revenue entitlements (MRE) and won’t pay any penalities.

The amount of western grain moved under the program was 13.4 per cent more than the volume moved during the previous crop year.

CN Rail was about $370,000 below its $930 million entitlement while CP Rail was roughly $764,000 below its $863 million entitlement. As a result, no penalities or overage payments will go to the Western Grains Research Foundation.

If a railway company exceeds its MRE, it has 30 days to pay the excess amount, plus a penalty, to the farmer directed organization set up to fund research.

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The federal Competition Bureau is challenging Parrish and Heimbecker’s (P&H) recent purchase of a grain elevator in Virden, Man. from Louis Dreyfus Company (LDC).

It filed an application with the Competition Tribunal for an order requiring P&H sell either its own elevator in Moosomin, Sask. or its newly acquired elevator in Virden.

The two communities are roughly 70 kilometres apart.

The Bureau says the two elevators were close competitors due to their proximity and the challenge is being launched to protect competition for farmers.

In a news release, the Bureau said the two elevators closely monitored each other’s wheat and canola prices and responded by offering farmers better prices.

The acquisition eliminates the rivalry and the Bureau said farmers deserve competition to protect their bottom line.

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alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF