Summary
A subsidy program providing transportation and storage payments for feed grain (rye, grain corn, screenings, sample grain) used as livestock feed. The transportation subsidies had multiple sunset dates ending January 9, 1996, while storage subsidies for grain stored in Eastern Canada persist with fixed per-tonne rates ($2.95/wheat, $5.20/oats, $3.69/barley). Payments require record-keeping and proof grains are fed to livestock.
Reason
This is a market-distorting subsidy that uses taxpayer funds to artificially lower transportation and storage costs for specific agricultural producers. It interferes with price signals that would otherwise allocate resources efficiently, creates dependency on government handouts, and picks winners in the agricultural sector. The regulation's complex payment structures, conditions, and multiple sunset provisions reflect its politically-motivated nature rather than any genuine market failure. Farmers and grain handlers would adapt to market-determined transportation and storage costs, as they do in other unsubsidized sectors. The unseen costs include higher taxes, inefficient resource allocation, and the corruption of entrepreneurial decision-making through government favoritism.