Transport Canada's and Agriculture and Agri-Food Canada's announcement that minimum volume requirements for the rail transportation of grain will remain in place until at least the end of March is welcome news for the region's agriculture industry, says Al Kemmere.
A Mountain View County councillor and the recently elected president of the Alberta Association of Municipal Districts and Counties (AAMDC), Kemmere says guaranteeing the transportation of grain will help area farms in several ways.
“If it's going to mean assured movement of product, I think it will be a good thing for the agriculture sector, that's for sure,” Kemmere told the Gazette. “Last year this (minimum volume requirements) was a reaction to a backlog that was still on the farms in March, so it is good to have this up front.
“Having this now will keep the grain moving. The longer the grain sits in the bin the higher the risk of quality change.”
There's no question that the timely movement of grain to market is vital for overall health of the region's agriculture industry, he said.
“Farming is about cash flow and movement of the grain facilitates that,” he said. “It comes down to a question of cash flow for so many people. Many farmers need to move the grain just to keep the cash flow moving on the operation, so they can plan next year's crop and pay the bills from last year's crop.
“There are many people who rely on getting the product moved now just to pay the bills.”
Last year, Transport Canada and Agri-Food Canada set minimum volume requirements to ensure the rail companies made grain transportation a priority after record harvests in 2013 were backlogged due to a lack of adequate transportation.
The new requirements include penalties against the rail companies if they fail to deliver the minimum.
The extension should help to prevent the backlog that plagued Prairie farms in 2013 and 2014, says the Alberta Wheat Commission (AWC).
“Extending the minimum requirement through the coming winter and spring season will help keep grain moving as we continue to work toward our goal of a sustainable and reliable transportation system,” AWC chairman Ken Erickson said.
“We will continue to voice our opinion on what we believe is the most critical mechanism to ensure that railways are held accountable for their performance through the inclusion of reciprocal penalties in service level agreements.”
The AWC represents 14,000 wheat producers.
The Grain Growers of Canada (GGC) has also come out in support of extending the minimum volume requirements.
“Canadian farmers grow some of the highest quality grain in the world and it is in everyone's best interest to see it get to market,” said GGC president Gary Stanford. “The reliable movement of Canadian product is of vital importance to the livelihoods of our members across the country.”
As well as the requirement to maintain the volume minimums, rail companies must also now submit formal winter contingency plans to Transport Canada.
The GGC is in favour of those contingency plans being required to “help respond rapidly to changing winter conditions and providing confidence to grain shippers,” he said.
The GGC represents more than 55,000 producers of wheat, durum, barley, canola, oats, corn and other grains.
The 69-member AAMDC advocates for rural communities.
"There are many people who rely on getting the product moved now just to pay the bills."Al Kemmere
