Who else is earning double the return on grain movement?

[dsheehan-millang]

Recently a report that Canada's national railways are earning double the return on grain movement year over year because freight rates haven't kept pace with railway productivity improvements, according to a study released by the CWB and the Canadian Shipowners Association last week. In 1997, farmers paid the railways $5.29 per tonne ($0.14 per bushel) more than they would have if rates had been based on actual railway costs. In 1998, they paid $4.92 per tonne ($0.13 per bushel)more then they should have. Is this what the market will bear? What comments do farmers have regarding this recent study?

[jwright]

Obviously this is what the market will bear. Despite the rail company nonsense about competition, it is clear that they can over-charge and still get the traffic, because there aren't reasonable alternatives. Same situation as glyphosate tolerant canola. Deregulation will only make things worse. There is a lack of competition now even though there are no regulations that would stop the development of competition. Deregulation would only remove the restraints on price gouging that are in effect now. Of course once rail prices are high enough, trucking will begin to be competitive on some routes and the rail companies will have achieved their objectives of operating only a few high revenue routes, while farmers drive many, high cost miles.

[mirabel]

Your comments are right on! Why can't some of our government people figure this out? Or do they even care? I believe the Federal Gov't has abandoned agriculture, and until farmers take hold of the power they collectively have and use it to their advantage things will only get worse.

[bbrindle]

In Agri-ville Times you will find the website for the CTA (Canadian Transportation Agency) report, released this week, that looked at railway costs. (You will need to click on the