WINNIPEG (March 8) — Canadian Pacific Railway has agreed to pay the Canadian Wheat Board $15 million to settle a dispute over lost grain sales during 1996-1997.

The settlement will be paid to the CWB, which in turn has said it will distribute the funds to Prairie farmers, over the next two years.

In addition, CWB has agreed to discontinue its lawsuit against the railway over business lost due to service delays during the winter of 1996-1997. The board was seeking $45 million for more than 1.5 million tonnes in lost grain sales.

In a joint statement, CP Rail president and CEO Rob Ritchie and CWB president and CEO Greg Arason said the settlement was “negotiated in good faith, recognizing that farmers were negatively affected by the events experienced in the 1996-1997 crop year, and that weather was a contributing factor.”

Aranson said the settlement “allows us to put the events of the 1996-1997 crop year behind us. We look forward to working with CP Rail on developing business solutions that benefit farmers and customers.”

Canadian National Railway settled with the CWB last year for an undisclosed amount.