The Canadian Transportation Agency ((CTA) has ruled that Canadian National Railway and Canadian Pacific Kansas City once again ended the crop year on opposite sides of their grain revenue limits.
In a determination issued Friday, the agency found that CN’s grain revenue for the 2024–25 crop year came in below its maximum revenue entitlement, while CPKC exceeded its revenue cap.
According to the CTA, CN earned $1.45 billion from Western grain movement in the 2024-25 crop year, about $5.9 million below its allowable limit. CPKC, meanwhile, recorded grain revenue of $1.06 billion, exceeding its entitlement by roughly $2.6 million.
As a result, CPKC has 30 days to repay the excess amount along with a mandatory 5% penalty of $133,012. Under federal regulations, the payment will be directed to the Western Grains Research Foundation, which supports crop research across Western Canada.
The ruling comes in a year marked by a sharp increase in grain movement. During the 2024–25 crop year, railways moved just over 49 million tonnes of Western grain, a 12.1% increase from the previous year’s 43.7 million tonnes.
The maximum revenue entitlement system, established under the Canada Transportation Act, allows CN and CPKC to set their own freight rates for Western grain, provided total annual revenue stays below a ceiling calculated by the Canadian Transportation Agency. The mechanism is designed to balance commercial flexibility for railways with cost protection for grain shippers.
Last year’s CTA ruling followed a similar pattern but under different market conditions. In December 2024, the agency determined that CN was below its entitlement for the 2023–24 crop year, while CPKC again exceeded its limit. Unlike this year, grain movement declined in 2023–24, with railways hauling 43.7 million tonnes of Western grain — a 3.5% drop from the year before — largely due to lower crop exports.
