The Western Grains Research Foundation (WGRF) says it will receive $5,231,011 from CN Rail for exceeding its revenue entitlement for 2013-14.
The Canadian Transportation Agency ruled Dec. 18 that CN has exceeded its maximum revenue entitlement under legislation that caps the revenue it can receive for grain during the crop year. CP was found to be under the rate cap.
The legislation provides for excess revenue plus a five per cent penalty are paid into the WGRF Endowment Fund for grain research.
“As a producer I would prefer that the railways stay below their maximum revenue entitlements, however when these entitlements are exceeded WGRF and its board of directors will invest these funds into field crop research to the benefit of all western Canadian farmers,” WGRF board chair Dave Sefton said in a release.
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He said WGRF is planning to invest $9 million from the Endowment Fund in 2015, up from $5.8 million in 2014.
New projects include a $5 million dollar commitment to the Genome Canada Large Scale Applied Research Program and initiation of plans to increase agronomy research capacity in Western Canada. WGRF has current commitments of $22 million to co-fund 125 projects in collaboration with 30 other funding organizations.
