Sask farmers still waiting to cash in on bumper crop

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Sask 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."

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[ http://www.cbc.ca/news/canada/saskatoon ... -1.2505487 ]

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(SK) PREMIER APPOINTS DELEGATION TO ADDRESS GRAIN TRANSPORTATION

[ http://www.saskatchewan.ca/government/n ... sportation ]

Released on February 12, 2014

Delegation of Cabinet Ministers and MLA to Meet With Grain Companies This Week

Premier Brad Wall has appointed Agriculture Minister Lyle Stewart, Economy Minister Bill Boyd, Highways and Infrastructure Minister Don McMorris and Legislative Secretary to the Agriculture Minister MLA Scott Moe to work on behalf of Saskatchewan producers to deal with the backlog of grain movement.

“This grain movement backlog is a very serious situation for the entire province and it is a high priority for our government,” Wall said. “The delays in moving grain have led to lower prices for our producers at the farmgate and are harming our reputation as a reliable supplier of agriculture products throughout the world. We want every possible avenue explored to ensure our producers have the ability to market and deliver their grain in a timely manner.”

The delegation will meet with representatives of the major grain companies this week to discuss the challenges they are facing in moving grain and potential solutions. In addition, they will also raise the issue of producer contracts, lower grain prices (as a result of the historically wide basis levels) and encourage all of the grain companies to pursue level of service contracts with the railways through the Federal Fair Rail Freight Service Act.

The province will continue to pressure the federal government to ensure improved grain movement remains their top priority. The provincial government is encouraged by recent federal enhancements to the Grain Monitoring Program, which will improve the frequency of reporting information about the grain handling and transportation system. If the situation does not improve, the provincial government will recommend potential legislative action to ensure all stakeholders throughout the supply chain are held accountable and encouraged to facilitate the increased movement of grain.

Meetings will also continue with the rail companies to discuss ongoing capacity issues and challenges. The delegation will urge the railways to implement short term measures to clear up the current backlog of grain, including adding crews, cars and locomotive capacity as necessary. In addition, railways will also be encouraged to implement long term plans for the future as it is anticipated large crops will become the new norm. This includes taking measures to ensure surge capacity and improved planning for weather challenges.

Working with producers and industry associations will continue to be a top priority to ensure the concerns of producers are at the forefront of all discussions. -30-

For more information, contact:

Karen Hill
Executive Council
Regina
Phone: 306-787-2127
Cell: 306-529-9207