Ship grain by producer railway cars
Under the Canada Grain Act, grain producers are entitled to order producer railway cars through the Canadian Grain Commission to ship any grain designated as such under the Canada Grain Act. Producer railway cars are used to ship grain directly to a particular destination and provide producers a delivery alternative to the licensed grain handling system. Producers have the option to deal directly with the Canadian Grain Commission and self-administer their cars or use an administrator who submits a completed producer car application on their behalf to the Canadian Grain Commission.
Shipping grain by a producer car can involve several different players. The Canadian Grain Commission is responsible for allocating producer cars. The railways (Canadian Pacific (CP), Canadian National (CN) and short line railways) are also involved as they operate the rail networks. When a part of the process is handled by CP or CN, you will be directed to that web site for more information.
Apply for a producer railway car online
Producer railway car administrators and producers who are administering their own producer railway cars can apply for a producer railway car online. To get started simply register and follow the steps to apply.
Before applying for a producer railway car
Review the following information:
- Producer Car Order for Crop Year 2016-17
- Railway Car Fumigation Declaration Order for Crop Year 2016-17
Information about applications
- Producers may submit applications for a producer railway car to the Canadian Grain Commission through an administrator or directly to the Canadian Grain Commission if they are self-administering a producer railway car.
- Administrators must apply for producer railway cars online. Producers who are self-administering their cars may choose to apply online, via fax at 204-984-4079 or mail.
- Producers must include their email addresses on their applications. Administrators must provide producer email addresses.
Each application must be a distinct order for a single grade of grain going to a particular station and destination. The application must include information about the precise siding (e.g., lease site name if applicable).
- Each producer must have a confirmed sale and destination. After the application is completed, the producer will be asked to verify (via email) a confirmed sale.
- The application must specify the shipping week the producer wants the producer railway car.
- Before cars are authorized, the administrator (or self-administering producer) may make the following changes to an application:
- The shipping week requested for delivery
- The station and precise siding
- The administrator (if self-administering)
- The number of cars applied for. Important: The number of cars applied for can only be reduced. To increase the number of cars, the administrator or self-administering producer must complete and forward a new application to the Canadian Grain Commission.
Important: Producer identification numbers
The Canadian Grain Commission issues Canadian Grain Commission producer identification numbers to each producer taking part in the producer railway car program. These identification numbers replace Canadian Wheat Board identification numbers. Contact the Canadian Grain Commission Producer railway car Unit at firstname.lastname@example.org or 1-800-853-6705 to get a producer railway car identification number.
Information about producer railway cars
- Self-administering includes arranging for credit for shipping charges with railways and paying freight costs yourself. An administrating company can do this for producers as part of their services.
- Up to 5 producers may load grain into a single producer railway car. One producer must be designated as the principal producer and act as the administrator for documentation and correspondence for the group.
- Shipping infested or contaminated grain, grain products or screenings is prohibited.
- Shipping a car that has been fumigated is prohibited.
- Producer railway car loading facilities are not licensed under the Canada Grain Act. Grain handled and stored at producer car loading facilities is not protected by security held by the Canadian Grain Commission.
- A producer must have written permission to load at a leased site. A copy of this written permission must be forwarded to the Canadian Grain Commission. A producer must have a confirmed sale.
To apply for a producer railway car
- An administrator must apply for producer railway cars online. Producers who are administering their own cars may apply online or complete the Application for Producer to Obtain Railway Cars form and mail or fax it to the Canadian Grain Commission.
- Submit a $27.50 non-refundable fee to the Canadian Grain Commission for each car applied for. Payment may be by credit card (MasterCard, Visa, American Express) or cheque. Important: Fees increase on April 1, 2017. Updated fees are available at Producer railway car application - service standard and fees. An application will not be processed until the fee is paid.
- One cheque may be submitted for multiple cars.
- If paying by cheque, make it payable to the Receiver General for Canada.
- If a cheque is NSF (non-sufficient funds), the application will be placed on hold until payment is received with an additional $15 service charge. The application will be processed once payment is received.
- If paying by credit card, the Canadian Grain Commission will contact the applicant for more information. Do not provide account information on an application.
- The Canadian Grain Commission will send an acknowledgement letter acknowledging the receipt of the producer railway car application(s), once the application(s) has been processed
- A copy of the credit card transaction will be attached to the acknowledgement letter if the car application fee was paid by credit card.
Note: Once a credit card payment is processed, all credit card information is destroyed.
Allocating producer railway cars
The Canadian Grain Commission allocates producer railway cars in the order it receives applications. A producer railway car may be scheduled for the requested week, provided that:
- The Canadian Grain Commission received the application at least two weeks before the requested week.
- The producer has demonstrated to the Commission’s satisfaction that the grain to be shipped is committed to a confirmed sale.
- The administrator or self-administering producer has demonstrated to the Commission’s satisfaction that the unload destination's authorization has been obtained.
Before a car is allocated, the Canadian Grain Commission will:
- Contact the producer or administrator by phone or fax to make sure the producer can load the car during a given shipping week.
- Mail the producer or administrator an authorization letter when their order is finalized.
- Fax or email loading instructions with an authorization number and a railway Order Reference Number (ORN) to the producer, administrator or the railway.
- Verify that the producer’s cars are authorized to unload at the destination.
There is no guarantee that a producer’s car(s) will be allocated or spotted before the end of the crop year.
Shipping request lists
Administrators may submit shipping request lists to the Canadian Grain Commission. This is a list of cars that an administrator wants allocated for the next shipping week and is based on existing applications that have been processed by the Canadian Grain Commission.
Administrators must submit their shipping requests lists for the following shipping week to the Canadian Grain Commission before midnight on Wednesday.
Each request list must include, by loading site:
- Name of producer
- Number of cars
The backlog rule ensures fair access to producer railway car loading sites because it limits the number of cars allocated to a producer or company to two times the maximum car spot at a loading site. Example: A producer can load up to 8 cars at a 4-car spot. After that, the next producer in the queue may load cars at that site.
Cancelling or postponing your application
If, at any time, the producer does not require the requested producer railway cars, the producer or administrator must notify the Canadian Grain Commission immediately to either cancel or postpone the producer’s application before the cars are ordered from the railways. Once the Canadian Grain Commission has placed a car order with a railway and the railway has accepted it, the producer may be charged a cancellation fee by the railway.
The Canadian Grain Commission will cancel any order if the status of a confirmed sale, destination authorization or producer identified on the order changes.
For any cancellation, the Canadian Grain Commission will cancel the cars and advise the railways, administrator and producer.
Completing the Declaration of Eligibility of the Class form
If a producer is delivering any type of grain (as defined by the Canada Grain Act), whether to the licensed handling system or by a producer railway car, the producer is required to complete a Declaration of Eligibility of the Class form. This form confirms that the grain or oilseed the producer will deliver is eligible for delivery for the commodity type of grain or oilseed for which payment is requested.
If a producer is using an administrator, the producer is responsible for signing the declaration form and sending it to the administrator before the producer loads a car. If a producer is self-administering a car and it is being shipped to a licensed terminal elevator, the producer must send a copy of the signed declaration form to the terminal elevator before the car is unloaded there.
Spotting producer railway cars
To get an update on when a producer’s cars will be spotted:
If the producer is shipping on CN lines:
- Grain Car Order Status for Producers
- Enter the required information as instructed. A Planned Service Report for car orders will be provided and updated accordingly.
If the producer is shipping on CP lines:
- Contact the producer car administrator for the car’s status.
For other inquiries, please contact the Producer Car Unit directly.
Loading producer railway cars
The railway or the administrator should phone to tell the producer when the requested car will be spotted for loading and how much time the producer will have to load the car. If requested cars are not spotted during the scheduled week, producers should contact their administrators or the railway.
Producer railway cars must be loaded:
- By or for the authorized producer.
- With the authorized producer’s grain.
- With the correct grain and as authorized by the Canadian Grain Commission
Other considerations for loading producer railway cars:
- Loading through a licensed grain elevator is prohibited.
- Shipping infested or contaminated grain, grain products or screenings is prohibited.
- Shipping a car that has been fumigated is prohibited.
- Any tape covering the car’s vents and any old tags or placards must be removed.
- If a car is not loaded on time and is pulled empty by the railway, the Canadian Grain Commission will cancel the car and the railway will charge the producer a penalty fee.
- Depending on the circumstances, the producer or administrator may need to apply again and pay another fee before a car is spotted again.
- Producers must provide their own seals
Completing shipping documents
Bill of lading
After a producer has loaded a car, the producer must complete a bill of lading from the railway. The producer or administrator must submit the bill of lading to the railway in a timely and accurate manner.
Important: Verify the contents of a car
The bill of lading may be required to verify the contents of a car. Ensure that the loading information included in the bill of lading is accurate and identifies the producer as the shipper and that it is sent to the railway on time.
Releasing producer railway cars
After the producer has loaded a car and completed the bill of lading, the producer or administrator must release the car.
To release a car:
- If a producer has an administrator: the producer notifies the administrator when the car is loaded and arranges to have the administrator release the car.
- If a producer is self-administering a car: the producer releases the car to the railway electronically. In order to do this, the producer needs:
- An authorization number, supplied by the Canadian Grain Commission
- A railway Order Reference Number (ORN), supplied by the Canadian Grain Commission
Completing shipping reports
Shipping reports must be completed with car load information after the car has been loaded and released. Completed shipping reports must be sent to the Canadian Grain Commission.
Railways may charge penalties for demurrage, late releases, late cancellations and any changes a producer or administrator makes to the bills of lading after the cars are released.
Unloading at port
When a producer’s grain arrives at a licensed terminal elevator, either:
- The terminal elevator operator shall sample, inspect and/or weigh the grain received, in a manner authorized by the Canadian Grain Commission or;
- A third-party service provider authorized by the Canadian Grain Commission and chosen by the terminal elevator operator shall sample, inspect and/or weigh the grain received in a manner authorized by the Canadian Grain Commission. Third-party service providers are used only if requested by the shipper (person who caused the grain to be delivered).
The Canadian Grain Commission inspects, tests and approves inward automatic sampler and delivery systems used for receiving grain at licensed terminal elevators. The Canadian Grain Commission has assumed an oversight role in the operation of these inward sampling systems to ensure compliance with the Sampling Systems Handbook and Approval Guide. All samples taken as part of an inspection on the inward receipt of grain must be taken in accordance with the Sampling Systems Handbook and Approval Guide.
All producer railway cars are inspected by a terminal elevator operator or third-party service provider upon receipt at the licensed terminal elevator. In the event that infestation is discovered at unload into the licensed terminal elevator, the Canadian Grain Commission is notified of the infestation discovery and of the insect(s) discovered. The associated sample is forwarded to the Canadian Grain Commission to verify the identification of the insect. The Canadian Grain Commission then works with the terminal elevator operator to manage the infestation at the terminal elevator.
Grain is considered infested if the insects found are injurious, noxious or troublesome to the grain’s integrity.
Important: Costs of fumigation
If infested grain is commingled with other grain, industry policy dictates that the producer is accountable for the total costs of fumigation of all grain that becomes affected.
Producers should check their grain for the presence of insect pests prior to shipping grain in producer railway cars. Sieve samples using standard No. 4.5 round hole or No. 10 mesh sieves and carefully examine any material that falls through. To identify any insects discovered or to access information on control strategies for stored product insect pests, please see Managing stored grain.
Under the Canada Grain Act, a licensed grain handling facility cannot receive grain that is contaminated and may refuse to accept delivery of any grain that is believed to be contaminated. As well, the Canada Grain Act prohibits delivery of grain that is contaminated.
Under the Canada Grain Act, contaminated means grain that contains “any substance in sufficient quantity that the grain is unfit for consumption by persons and animals or is adulterated within the meaning of the regulations made pursuant to paragraph 30(1)(a) of the Food and Drugs Act.”
Any delays caused by contaminated grain can result in additional cost to the producer. Extra charges, such as storage charges or costs related to potential contamination of other grain in the facility could be passed on to the producer, if traceable.
Failure to meet authorized shipment
If the producer’s grain at unload does not match what was authorized for shipment, the producer may experience delays in the allocation of any subsequent cars and may incur additional charges at the terminal (such as storage charges and demurrage).
Damp grain and off-grades
Shipments of cars of damp grain, off-grades (which includes grain with excreta) or grain that is likely to go out of condition will be authorized only if a licensed terminal elevator has agreed to unload the grain.
If a producer is not satisfied with the grade, protein, moisture or dockage assigned to their grain during inward inspection of a railcar at a licensed terminal elevator, the producer has the right to request binding determination of grade and dockage by the Canadian Grain Commission.
A producer must request a reinspection within 5 calendar days after the date of the original inspection. The producer (or the administrator) must:
- Complete the Inward Reinspection Application form I-136.
- Submit the application by email or fax to both the Canadian Grain Commission (email: email@example.com or fax: 204-983-7550) and the receiving licensed terminal elevator within the 5-day period.
Upon receipt of the Inward Reinspection Application and the representative sample provided by the receiving licensed terminal elevator, the Chief Grain Inspector for Canada inspects the sample and issues an Inward Reinspection Certificate to both parties involved in the disagreement. If the grade assigned to the grain is different from the grade previously assigned to it, the Chief Grain Inspector for Canada requires all inspection certificates and other documents relating to the grain be revised accordingly. Final determination rests with the office of the Chief Grain Inspector for Canada.
Settling for grain and charges incurred
Settling of payment and charges incurred when using a producer railway car
If a producer ships to a Canadian Grain Commission licensed elevator, the producer is paid based on the grade and net weight of the grain at unload. If the producer uses an administrator, usually the administrator pays the freight, cleaning charges and any weighing and inspection fees that may apply on the producers’ behalf. The administrator deducts these fees from the final payment to the producer.
Producers are encouraged to make sure they get proper documentation as without it they may not be able to make a claim for compensation if something goes amiss.
Settling a dispute
A producer is primarily responsible for settling any disputes that they may have with:
- The railway (contact the railway directly or the Canadian Transportation Agency)
- The elevator that receives their grain
- The buyer of their grain
However, if the producer is having trouble getting a settlement for their grain from a company licensed by the Canadian Grain Commission, they should contact the Canadian Grain Commission.
Producer Car Unit
Canadian Grain Commission
601 - 303 Main Street
Winnipeg, Manitoba R3C 3G8
Producer Car Officer
Telephone: 1-800-853-6705 or 204-983-3368
Other Canadian Grain Commission contacts
Grain Reinspection Clerk
Grain Sanitation Services Office (for infested grain)
Telephone: 1-800-853-6705 or 204-983-3790
Transportation Service Center
Web site: Canadian National
Car releasing/manual bills of lading
Web site: Canadian Pacific
Disputes with the railway
If you need more information about disputes with the railway, you can contact the Canadian Grain Commission or the Canadian Transportation Agency.
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