Inadequacies in the Canadian rail sector have plagued western grain producers in the last few years.
The situation was most blatant in the fall of 2013, and throughout 2014, where the system proved woefully inadequate in moving a record crop to port position in a timely fashion. Granted it was the largest crop ever recorded in Western Canada when 76.8 million tonnes of all crop types were harvested in Manitoba, Saskatchewan, Alberta and British Columbia, but production numbers have been higher on a regular basis of late because of acres planted, crop genetics, and a better understanding of nutrient requirements of various crops.
A system might be expected to have occasional issues with moving record crop, but the system basically bottlenecked the system to weeks and weeks, and that impacted farmer delivery and timely sales. It was not a good situation, and the federal government of the day was reluctant to impose sanctions with too sharp of teeth.
What did come out of it was a Canada Transportation Act review process which was supposed to find ways to fix the problems with the rail transportation system in terms of grain movements.
Federal Transportation Minister Marc Garneau has announced new legislation will be introduced in the spring of 2017 to allow Canadian shippers to impose reciprocal penalties on Canadian railways.
The decision has received support within the farm sector, including SaskBarley Board Chair Jason Skotheim, who noted in a recent release the announcement is a good one for farmers.
The Western Grain Elevator Association (WGEA) also commended the Government of Canada on a big step forward in addressing several longstanding inadequacies with Canada鈥檚 rail transportation policy. The announcement by Minister Garneau to introduce reforms in Spring 2017 will go a long way to addressing key problem areas identified by the WGEA.
鈥淭his is an important day for not only grain shippers but for every grain farmer across the country who relies on dependable and accountable rail service,鈥� said WGEA Executive Director Wade Sobkowich in a release. 鈥淲e鈥檙e thankful that Minister Garneau and Minister MacAulay understand just how fundamental this is to grain farmers and the industry.鈥�
But there is also a feeling more is needed.
In their release SaskBarley also noted a hope to see more action taken in coming months.
In its September submission to the Federal government鈥檚 CTA review, SaskBarley put forward several recommendations based on the principles of increased transparency, accountability and competition at all levels within the value chain.
Specifically, SaskBarley has pushed for keeping the Maximum Revenue Entitlement (MRE) in place to protect Saskatchewan farmers.
The situation as it exists may be tested again this winter, as the current crop is another huge one. It may have set a new record, at least some estimates earlier this season hinted at the possibility, although harvest issues due to rain may lower production somewhat.
It will help that softer oil prices than in 2014, may reduce oil movements by rail, helping free engines and lines for grain movement, but if the cold, snowy winter predicted hits, the system will be tested and the needs for more regulations and control shown yet again.
Calvin Daniels is Assistant Editor with Yorkton This Week.
