Sask farmers still waiting to cash in on bumper crop
Posted: Wed Jan 22, 2014 4:50 pmSask farmers still waiting to cash in on bumper crop
[ http://www.cbc.ca/news/canada/saskatoon ... -1.2505487 ]
Slow grain transport in a choked rail system to blame says farmers
CBC News Posted: Jan 22, 2014 6:00 AM CT Last Updated: Jan 22, 2014 10:02 AM CT
Much of last year's record-setting harvest still sits in the bin. And farmers remain unpaid for it. That's because of a choked railway system that isn't moving grain to port soon enough.
"We're in the midst of an emerging crisis around grain movement," said Doug Faller, co-general manager of the Agricultural Producers Association of Saskatchewan (APAS).
"There's been debate about why it isn't moving but the reality is that there are producers who have contracted grain that should have been delivered three months ago," Faller added.
He said it's hurting the ability of farmers to pay their bills and loans. Last week APAS issued a news release asking banks to be patient. He is also trying to set up talks between farmers, grain handlers and railways to find solutions.
Cash not flowing
Off-farm income is helping Michel Lepage cope on his farm near St. Denis. But he sees others struggling.
"Any farmer that's in a situation where he needs that extra cash flow will be caught between a rock and a hard place right now," said Lepage.
Certainly the record harvest partly explains the rail bottleneck. But Lepage also sees competition from the mining and oil sectors.
"The allocation on train runs, are they going to prioritize on cars that pay more money when it comes to hauling potash, let's say?," Lepage commented.
Wheat Board lost clout with railways?
Some, including Faller, also wonder if the end of the Canadian Wheat Board's monopoly is a factor.
"Clearly the Canadian Wheat Board played a very important role in coordinating the sourcing of grain, and the movement of that grain into the grain transportation system, and the filling of the ships at port.," Faller said.
"With no central entity in place to do that it becomes a more complex issue," Faller added. "We will see I think in the years ahead how important that role might have been. Many argue it was critically important."
MORE:
[ http://www.cbc.ca/news/canada/saskatoon ... -1.2505487 ]
[ http://www.cbc.ca/news/canada/saskatoon ... -1.2505487 ]
Slow grain transport in a choked rail system to blame says farmers
CBC News Posted: Jan 22, 2014 6:00 AM CT Last Updated: Jan 22, 2014 10:02 AM CT
Much of last year's record-setting harvest still sits in the bin. And farmers remain unpaid for it. That's because of a choked railway system that isn't moving grain to port soon enough.
"We're in the midst of an emerging crisis around grain movement," said Doug Faller, co-general manager of the Agricultural Producers Association of Saskatchewan (APAS).
"There's been debate about why it isn't moving but the reality is that there are producers who have contracted grain that should have been delivered three months ago," Faller added.
He said it's hurting the ability of farmers to pay their bills and loans. Last week APAS issued a news release asking banks to be patient. He is also trying to set up talks between farmers, grain handlers and railways to find solutions.
Cash not flowing
Off-farm income is helping Michel Lepage cope on his farm near St. Denis. But he sees others struggling.
"Any farmer that's in a situation where he needs that extra cash flow will be caught between a rock and a hard place right now," said Lepage.
Certainly the record harvest partly explains the rail bottleneck. But Lepage also sees competition from the mining and oil sectors.
"The allocation on train runs, are they going to prioritize on cars that pay more money when it comes to hauling potash, let's say?," Lepage commented.
Wheat Board lost clout with railways?
Some, including Faller, also wonder if the end of the Canadian Wheat Board's monopoly is a factor.
"Clearly the Canadian Wheat Board played a very important role in coordinating the sourcing of grain, and the movement of that grain into the grain transportation system, and the filling of the ships at port.," Faller said.
"With no central entity in place to do that it becomes a more complex issue," Faller added. "We will see I think in the years ahead how important that role might have been. Many argue it was critically important."
MORE:
[ http://www.cbc.ca/news/canada/saskatoon ... -1.2505487 ]