Canada. Grain Transportation Agency : In 1897 the federal government agreed to subsidize the Canadian Pacific Railway in its construction of the Crow's Nest Pass through the Rocky Mountains. In return, the railway agreed to cap the amount it would charge farmers to ship grain eastward; this became known as the "Crow Rate". In 1925, the subsidization was regulated and the agreement was extended to every prairie shipping point, railway, export port, grain by-product and oilseed. By the late-1950s, the railways were losing money shipping grain and, as a result, deferred capital investment in equipment and infrastructure. The MacPherson Royal Commission was struck in 1961 and reported on the deteriorating situation. In response, the federal government began subsidizing unprofitable lines, which were in turn subsidizing farmers. The government also provided funds to improve the railway infrastructure.
The Grain Transportation Agency (the GTA) was created in 1979 as a coordinating body to administer the subsidization of the railways. In spite of the federal commitment, the railways continued to lose money. A task force was struck to investigate the issue in 1981, headed by Clay Gilson. Released in 1982, the Gilson Report recommended widespread changes to the entire system. The government responded with the Western Grain Transportation Act (WGTA) of 1983. The Act committed the government itself to fully compensating the railways for shipping grain at regulated rates and it also included provisions stipulating that the railways provide a reliable, efficient and adequate infrastructure to ship grain. The GTA was empowered by the Canadian Transportation Commission (later known as the National Transportation Agency) to administer the Act. In 1995 the federal government decided to repeal the WGTA. Grain traffic now fell under the National Transportation Act. The GTA was no longer a legislated body; instead, it was assigned to continue its operational, planning and coordination duties until those duties were transferred to an industry body.
