But that is rarely the case for grain farmers. There are simply so many pitfalls that can open overnight to cause issues. While one can understand the uncertainties of Mother Nature introducing production obstacles ranging from bugs to disease to frost to too much rain or too little, those uncertainties continue once the grain is safely in the bin.
One of the ongoing concerns Prairie producers have is getting their products to international buyers.
In recent years there have been issues in terms of simply getting railcars when required. It got to the point that a new law was passed in 2018, requiring Canada’s major rail companies to publish winter plans and can be forced to pay up if they fail to deliver on certain promises of rail cars.
That such a law was needed reflects that grain delivery is frankly pretty low down in terms of the pecking order when it comes to railcars allocation, without some strict regulations in place. Oil, potash, and other commodities make better sense for rail companies. So maybe moving forward, the railcar allocation will be better maintained. But, as one pothole on the road of grain delivery is hopefully filled in, another appears on the horizon.
If grain is not exactly a preferred commodity for rail companies to haul, it may not be the most lucrative product to be taking up port space either. The area to build export ports is, of course, finite, and while the grain facilities are in place, they have to pay rates competitive with what other facilities do – which can be handling higher-value products.
In a recent producer.com article Wade Sobkowich, executive director of the Western Grain Elevators Association, said rent on federal property at the Port of Vancouver went up 13 to 30 percent this year. Those are significant increases, and in the end, producers will be paying it in some fashion. It will not be a direct bill, but increased costs in the system will ultimately be reflected in what farmers are paid for their grain.
Farmers are very much captives of the systems with very limited options. Grain companies have generally carved up the Prairie map with less and less service overlap, limiting delivery options. The country has been basically split between the two rail companies. There are limited port accesses, east and west. And so a good harvest or not, farmers have worries to face still.
- Calvin Daniels
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Disclaimer: opinions expressed are those of the writer.