The Western Grains Research Foundation is set to receive about $68 million from two Canadian rail companies.

The Canadian Transportation Agency says Canadian National Railway and Canadian Pacific Railway have exceeded their revenue caps for crop year 2007-2008 for the movement of Western grain.  The agency has given the two railways 30 days to pay the foundation the overpayments plus a 15% penalty.

That amounts to nearly $4 million for CN and over $5 million for CP Rail.  This is the largest amount that any railway has exceeded the revenue cap.  These large overages reflect the actual costs incurred by CN and CP for maintenance of hopper cars.

There is no realistic way to return the over charge to individual farmers in an equitable way so the money is destined for an endowment fund to be used to support all types of crop research.  Lanette Kuchenski the executive director of the western grains research foundation says the money will be put in trust for the time being.  If CN or CP appeal the ruling which it seems apparent they will, it could take up to three years before the court case is final.