World Grain - April 2018 - 10

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CN taking steps to improve movement
of Western Canadian grain
MONTREAL Quebec, CANADA - Jean-Jacques (JJ) Ruest, who
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Canadian National Railway Co. (CN), on March 7, said CN will work
to immediately improve the movement of Western Canadian grain.
He said the company is dedicating additional people and equipment
to clear backlogs across the CN grain network.
"We apologize for not meeting the expectations of our grain customers, nor our own high standards," Ruest said. "The entire CN
team has a sense of urgency and is fully focused on getting it right
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Canadian businesses, and protecting Canada's reputation as a stable
trade partner in world markets.
"Moving the Canadian economy is in our DNA. We can and we
will do much better, and that starts today - no excuses. CN has
taken immediate steps to mobilize our proud and dedicated team of
railroaders - the best in the business - in order to move more grain
faster."
Ruest said CN will take several steps to move grain faster, including offering incentives for key employees to delay retirement
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extra trains, adding train crews in Western Canada, leasing 130 locomotives to increase capacity in Western Canada, and investing more
than C$250 million to build new track and yard capacity in Western
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for future grain crops.
Ruest, who has been with CN for 22 years, including the last eight
as executive vice-president and CMO, replaced Luc Jobin as CEO in
early March. At the time of the announcement, Robert Pace, chairman of the CN board, said the company needed a leader "who will
energize the team, realize CN's corporate vision and take the company forward with the speed and determination CN is known for."
An international search for a permanent CEO is underway.
CN said it delivered 4,577 empty hopper cars in mid-March, up
35% from the February average of 3,400. With all available hopper
cars in service, CN said it expected its weekly delivery total to approach 5,000 per week by the end of March.
"Canadians can count on CN to get this job done and to get it done
VDIHO\UHOLDEO\DQGHI¿FLHQWO\´5XHVWVDLG³:HZLOOSURYLGHUHJXlar weekly tracking on our grain movements and engage our grain
customers. We also encourage Parliament to pass Bill C-49 swiftly."

NGFA applauds inclusion of fix to Section 199A
WASHINGTON, D.C., U.S. - The National Grain and Feed
Association (NGFA) commended the bipartisan congressional leadHUVKLSIRUUHSRUWHGO\LQFOXGLQJLQWKHRPQLEXV¿VFDO\HDUDSpropriations bill stakeholder-driven provisions that would correct the
unintended consequences of Section 199A of the Tax Cuts and Jobs
Act of 2017.
The NGFA and National Council of Farmer Cooperatives had issued a joint statement on March 13 supporting prompt enactment
of the legislative language, which was developed after months of
collaboration and extensive analysis in an effort to replicate to the
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cooperatives and their farmer-patrons under the previous Section
199 (also known as the Domestic Production Activities Deduction),
while restoring the competitive landscape of the marketplace as it
existed in December 2017 so that the tax code does not provide an
incentive for farmers to do business with a company solely because it
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concepts developed by the NGFA and the NCFC, the NGFA said it
will urge its prompt passage.
"There is a huge sense of urgency in getting this issue resolved, as
producers continue to make marketing decisions, particularly given
the welcome rally in corn and soybean prices in recent weeks," said
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10

"Thousands of grain elevators and other agribusinesses, most of
them small businesses that provide economic vitality to rural communities, will be making costly decisions on whether to reorganize
their business to be able to compete or even whether to remain open
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understands the calamity that will result unless the current Section
199A is corrected, and we will be working tirelessly until it is. The
inclusion of these provisions in the omnibus bill is a huge step in the
right direction to preserve competitive choices for producers when
marketing their agricultural products."
The legislative provisions would amend Section 199A as it exists in current law, under which producers may deduct up to 20% of
gross payments received on sales of agricultural cooperatives, without certain limitations based on income. Meanwhile, farmers selling
to private/independent companies are restricted to deducting 20% of
net business income, a considerably smaller deduction.
Gordon also noted the urgency and necessity of correcting the
current Section 199A is compounded by the fact that the skewed tax
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cooperative.
"The implications of this spreading well beyond agricultural businesses could be devastating to the generation of tax revenues to the
federal treasury," he said.
April 2018 / World Grain / www.World-Grain.com
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World Grain - April 2018

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