Remove The Cap

[saskcanfarmer]

Wheat Growers respond to Emerson transportation review
Recorded on February 25th, 2016

Grain farmers see some positive rail shipping recommendations, some red flags

SASKATOON, SK—(February 25, 2016):Today, the Western Canadian Wheat Growers Association responded to the Emerson review of the Canadian transportation system.The review report includes several positive and similar recommendations as put forward in the Wheat Growers submission to the review in June 2015, but misses on certain key issues on enhancing greater competition and service in rail shipping.

“Farmers have seen it very clearly for some time that major changes are needed in railway service for shippers, and it’s good to see some of it recognized in the Emerson review” said Jeff Prosko, who farms near Rose Valley, Saskatchewan, and serves as Director of the Wheat Growers and Chair of their Transportation Committee.“As we said in our submission to the review ‘farmers end up shouldering the cost of system failures,’ and this has to change.”

Tens of millions of tonnes—and billions of dollars—in wheat and other grains are produced and exported from western Canada every year.Improved rail service for grain shippers is paramount to getting the grain to customers here at home and abroad, including to key markets in Asia.

“We encourage the government to accept and implement the key recommendations on railway service, some of which would help create a more competitive market and incent greater investment in the grain industry,” said Prosko. “However, grain growers also need to see much greater competition and increased capacity among the railways—we can’t keep losing customers and valuable export markets due to system failures.”

The Wheat Growers do see some positive recommendations for grain farmers in the review, including: modernizing the Maximum Revenue Entitlement (MRE) Program, improving level of service provisions (including for producer car shippers), performance standards, reciprocity, and creation of a dispute resolution unit within the Canadian Transportation Agency to address level of service issues and complaints.

The Wheat Growers are also pleased the report adopted our recommendations to exclude container shipments from the MRE and to properly account for capital investment in the MRE calculation for each railway.

The Wheat Growers also see some red flags in the review.The Wheat Growers believe some form of rate regulation around the MRE will likely still be necessary in seven years, given the lack of competition among railways and the lack of alternative market channels for large segments of the prairie farm economy.Increased competition among railways, as well as expansion in the livestock and processing sectors, is essential before any real discussion takes place of the MRE being done away with completely.Further, the extended interswitching provision of 160 km should not automatically sunset this summer, as that will reduce competition rather than expand it.Finally, the Wheat Growers support the move to modernize the MRE, including provisions to allow shippers to book premium service outside the revenue cap, providing such service is incremental and doesn’t adversely impact service to other grain shippers.

[sawfly]

the railways have promised to move the grain for 50 years.
and the wheat growers were all in
favor of every concession to the railways.
they will move it if we do this.
ya right !!

from the crow to today , nothing has changed .

it's a monopoly, or duopoly if you wish.
they could really give a flying f when they move anything.

we are captive shippers ,
short of trucking it , they will still get to haul it when they get around to it.
and what's the best way to get the rates higher.

apparently . give worse service.

with wheat growers help it works every time

and like 10 times before if you grant them more money.
it will not make a bit of difference.
like before they just pocket it , or invest some where else. like CP did.

how many times can the wheat growers and railroads sell the same lie.
or how stupid are people to buy it.

remember the wheat growers swore full compensatory rates would fix it all years ago.

great system we got .
the worse they screw up the more they get paid

[farmaholic]

The development of the Railways was initially intended to open the West and provide a service. They are completely driven by shareholder returns and service is second.

Is it fair that a public company can pick Industry winners and losers? Does potash, oil, or general freight deserve better service than grain?

Have they not received enough concessions already? Rail line abandonment, inland terminal consolidation to help make their job more efficient at the Producer's(and public's -read roads) cost?

Do we or don't we have a viable Ag industry in Western Canada, will we or won't we have a viable ag industry if we let them do what they want.

Under the circumstances, with little to no viable alternatives and lack of competition between the existing RRs, what options do we have but to exercise a degree of regulation. With out it, maintaining the status quo could be difficult and growing "primary" commodity ag production is likely impossible.

So let's hold ransom a whole industry and all it's supporting suppliers of goods and services so a mono/duo-opoly can pay dividends to it's shareholders.

Maybe Western Canada can do without Ag...

[fjlip]

Who the **** recommends removing the MRE without a costing review?

The Railroads, with all the lobbyists, politicians listen to their buddies, padding future board room jobs, etc....

[wmoebis]

In the interest of Canada, The Gov't expropriates land all the time. How about they expropriate all the land the rail is on and pay them scrap price for the steel.

Set up a joint venture running giving the RR 49% share supplying the engines and maintenance with the Gov't owning majority 51%.

[sawfly]

wmeobis we can't do it .
Mulroney fixed that in the free trade deal .
if we did , they could sue for lost revenue and lost future revenue.
he emasculated the cdn . govt. and the canadian people.

[bucket]

Obviously it was a report that was written before any thinking went into it.

Getting rid of the MRE was predetermined.

[bucket]

I thought I heard Trump was willing to rip nafta up?


Don't know why people use the trade deals as an excuse to allow railways free reign.

They cry bloody murder if you talk about joint running rights.

[BTO_farmalll]

Clap em!!!!!!!!!!

[Hopalong]

Going to be interesting to see response from WBGA and graincos.
About four years ago they supported farm groups in defending revenue cap.
A lot of criticism for wide basis levels following big crop but how else to discourage delivery with shortage of rail capacity?
Maybe they will be on other side of fence his time.