The shrinkage allowances prescribed in the Canada Grain Regulations are maximum allowances. Elevator operators may deduct less than the maximums found in the Regulations. In other words, shrinkage deductions are negotiable between the owner of the grain and operator of the facility. Shrinkage allowances are intended to compensate elevator operators for the loss in gross weight that may occur during grain handling and storage. Loss in weight may occur each time that the grain is handled.
Grain is weighed as it is received at a primary elevator.
This is the inward weight. Primary elevator operators are responsible for all loss in weight from the time they receive grain to the time the unload weight is determined at the terminal elevator. This includes losses in weight in transit and during handling at the terminals before the grain is weighed. At a primary elevator, shrinkage is deducted from the scale weight of grain when it is delivered by producers. The scale weight of grain delivered by producers less the shrinkage allowance equals the accountable gross weight.