To the Editor: Agricultural in Saskatchewan represents substantial investments in the agri-business in western Canada.
The current Canadian Transportation Act (CTA) as it relates to the level of railway services and accountability presents farmers with additional economic challenges to compete in domestic and international markets. When logistic inefficiencies and high costs are prohibitive in farmers realizing profits to ensure the continuation of a healthy industry. We are at the mercy of these fixed transportation costs with no power to negotiate with the railroads.
This leaves the farmer at a disadvantage because as farmers our sale of grains relies on the international market forces. The Western Grain Elevator Association (WGEA) and the Shippers Coalition have been seeking amendments to the CTA that will improve system performance and reduce costs. This must be done through increasing railway responsibility and accountability to our farmers in Saskatchewan. Accountability and responsibility measures can only be achieved through an accessible low cost dispute settlement mechanism.
Saskatchewan farmers rely upon the railway services for the movement of grains, oilseed and speciality crops to domestic and export markets. In order to be competitive, producers require accountable and reliable transportation services to meet their business obligations and deadlines. Farmers face additional challenges because of the levels of service and the inability to resolve these problems under the CTA as it currently exists. The freight charges to farmers are set by the CTA. It increases costs and reduces the farmers profits in these key areas:
Lost grain sales domestically and internationally;
Lost revenue because of product being sold outside of peak commodities markets;
Significant vessel demurrage bills;
Lost good will, market access and reduced confidence in Canada as a reliable supplier of agriculture products;
Increased costs to farmers due to increased handling and shipping costs that are charged back to the farmer.
Amendments to CTA legislation are imperative if Saskatchewan farmers are to compete. Farmers need reliable strategic logistic services (RAIL TRANSPORTATION), competitive pricing for transportation, and a timely and cost efficient venue for the arbitration and settlement of these disputes. Farmers are treated unfairly as we all know they're unable to get the fair and open competition for the transportation of grains similar what the Saskatchewan Potash industry currently enjoys. It makes good business sense for the Federal Government to review and revise the CTA's current regulations on transportation in order to gain a high level of economic growth in the agriculture sector.
The people of Canada rely on having a healthy agriculture industry to provide them with a safe and secure food supply so that we do not experience food shortages and unreasonable inflation in this market as seen in other countries.
Glenn Blakley, Tantallon, SK.
