Question Period Note: CANADIAN GRAIN COMMISSION 2025-26 MAIN ESTIMATES

Q1 – Why has the Canadian Grain Commission’s 2025-26 Main Estimates increased when compared to the 2024-25 Main Estimates? Q2 – What is in the Canadian Grain Commission’s 2025-26 Main Estimates? Q3 – What is the status of the Canadian Grain Commission’s accumulated surplus?

R.1 - The CGC’s 2025-26 Main Estimates are $16.1 million higher than the one from the previous year which is primarily attributable to increased investment in strategic priorities and estimated drawdown on accumulated surplus to offset revenue shortfalls and manage growing operational costs until updated fees and grain volume forecasts are proposed for fiscal year 2027-28. R.2 - The CGC’s Main Estimates for 2025-26 are $28.3 million, which includes:
1. $6.2 million in voted appropriation to support grain research, internal audit and legal functions
2. $0.8 million to support statutory employee benefit plan obligations
3. $21.3 million planned spending of accumulated surplus funds for investment in strategic priorities and expected revenue shortfalls R.3 - As of March 31, 2024, the Canadian Grain Commission’s accumulated surplus reported in the Public Accounts was $111.9 million which includes a $40 million contingency reserve.
Rather than increasing fees, the CGC has announced plans to use its accumulated surplus to cover anticipated shortfalls for fiscal years 2025-26 and 2026-27.

A summary of the Canadian Grain Commission’s 2025-26 Main Estimates in comparison to the 2024-25 Main Estimates, as well as a breakdown by Core Responsibility follows:
Purpose 2024-25 2025-26
($ million) Main Estimates Main Estimates Difference Explanation
Vote 1 - Operating

Grain Regulation 11.9 28 16.1 The increase is primarily due to the inclusion in the 2025-26 Main Estimates of an estimate for anticipated revenue shortfall and increase in operational costs as well as increased investment in strategic priorities
Internal Services 0.3 0.3 0

Total 12.2 28.3 16.1

• The Canadian Grain Commission (CGC)’s Main Estimates for 2025-26 are $28.3 million. The Main Estimates include $6.2 million of voted appropriation, which represents less than 10% of the CCG’s total budget and is consistent with previous years.

• The remainder of the CGC’s Main Estimates is primarily planned spending of accumulated surplus funds for investment in strategic priorities and to cover expected revenue shortfalls.

• The majority of the CGC’s funding comes from service fee revenues. As a revolving fund, the CGC’s financial model allows for fluctuations in revenue and expenses from year to year based on changes in grain production and export volumes.