Raymore elevator

[TPF]

Letter from Cargill president Jeff Vassart on May 4 Hello Terry,

As someone who grew up in a small farming community I can relate to the concerns that you have raised with Jeff Wildeman and in your note to me. A large percentage of our businesses are located in rural communities where agriculture is the foundation and at Cargill we have a commitment to be a good partner in these communities to help them thrive. We do this by focusing our efforts to help farmers be more successful and empowering our employees to volunteer and get involved in strengthening the communities in which they live and work. In that regard I believe we have similar goals to what you outline below in your note.

As you are aware we made the difficult decision to cease operating the grain elevator last fall as it is now at the end of its useful life. It was a difficult decision for us as the support we have received from farmers in the area has been strong. Unfortunately the investment required to meet the environmental and safety standards exceeds our investment criteria. It is our goal to continue to provide grain marketing solutions to farmers in the area to connect them with customers around the world in new and different ways.

When we close a facilities like this our top priority is to ensure we protect the community. In our experience if an elevator is not maintained it will quickly deteriorate posing environmental and safety risk to citizens in the community and to our employees. As Jeff has indicated to you we have not received any formal proposals for the elevator. Therefore, as is our normal process we are proceeding to properly dispose of the asset in the appropriate manner defined by the local authorities.

We have not received a proposal from you to purchase the elevator. When you have a written proposal we would be happy to sit down with you so that we can review it internally within Cargill and provide you feedback. I can assure that we are not looking for a battle as you suggest in your letter. We want to ensure we do our part to protect the community and environment by not allowing this facility to become a hazard in Raymore. Jeff W. is the manager of our Saskatchewan region and should remain your contact when you have something for us to review and discuss.

Thank you for reaching out and sharing the same passion we have in seeing local communities across Canada be successful.

Best Regards,

Jeff Vassart
President
Cargill Limited
150 Years of helping the world thrive

[TPF]

June 2 reply from Cargill there not the one
Dear Mr. Fazakas,
Thank-you for your interest in the Raymore elevator and proposal regarding alternative plans for the asset. As the landlord of the property, CN is the ultimate decision-maker on future use of the site, with CN’s consent being required for any proposed transaction.
In following the sale process, Cargill has reviewed your proposal and shared highlights of such proposal with CN. After review, CN has indicated that it cannot release Cargill from the obligations of its current lease and therefore, will not permit the outright transfer of the leased land.
As a consequence of CN’s decision, Cargill will not be putting the elevator assets on the market for sale.
Sincerely,
Jeff Wildeman
Regional Manager, Saskatchewan
Cargill Agricultural Supply Chain North America
cc. Lyle Stewart, Minister of Agriculture, Government of Saskatchewan Greg Brkich, MLA, Arm River
Malcolm Kuntz, Mayor, Raymore
Jeff Vassart, President, Cargill Limited
Chantelle Donahue, Vice President, Corporate Affairs, Cargill Limited Cam Funk, Corporate Council, Cargill Limited

[farmaholic]

My comment about regulating stupidity applies to both CN and Cargill!

There appears to be a lack of willingness to find a solution by CN, Cargill and Government other than to close this point.

Is there anything wrong with the facility?

Hard to fathom....for this "simple" grain farmer!

[Guest]

sounds like cargill may be interested in helping you ? that is a good thing . CN came around on this one after about 2 years . I had nothing to do with it , but the mayor , reeve , RM administrator and some concerned farmers put a lot of time and work into it to make it happen . UGG sold about 50 of us the elevator (built in about 1980) for $1000 each which covered startup , purchase of elevator and running costs . it was ran as a producer car loading spot and bin rental at 10 cents a bushel to shareholders for many years . today it is leased to and run by linear grain out of Carmen manitoba as a grain buying elevator . it has 3 full time employees who support the local economy .we get a maintenance company in every year or whenever necessary , same one that keeps up commercial elevators . they also have plans to expand with some more bins .
the 18 miles of short line was purchased from CN and is run as Thunder Rail . this was purchased by us 50 people again at $1000 each . the person that has run it all these years is unbelievable and has turned into a big buisness and worked very hard at it . it owns 2 locomotives , 18 miles track , sidings for rental storage of cars , shop and shed, all track building and maintenance equip ., semi and trailer , truck, trailers , etc . it runs 2 year around employees , several seasonal and does custom work for many other shortlines . it seems like there is a very good working relationship with CN as well . they hauled over 1000 cars out on that shortline last year including cars for Anderson grain which has a loading facility on the line .
none of this would of happened if it was ripped up and tore down . anyone that thinks it's better to tear them down and rip up lines needs to wake up . politicians allowing this to happen should be absolutely ashamed of themselves .

[wmoebis]

Game of "Pass the Buck"

It has been a game in the grain industry forever.

[bgmb]

Grain co blames a railway... never heard that before

[Guest]

oh and that's about 82000 tons that didn't have to south on hwy 23 which the log trucks wrecked this winter hauling extra 20 tons or - , more than any other buisness or farmers , with a stupid f$&king permit issued by idiots involved with govt

[samhill]

Just a little bit more relevant info, I herd from an employee that Linear tried to buy part of the old CN track, I think from CEMR which operates that line, and the railway said they didn't want to sell it b/c they make good money renting it for rail car storage. That lines sometimes has hundreds of empties on it as does part of the CP line running north from the Viterra facility.
From what I see anyway.

[fjlip]

What a f*ing gong show. Sick bastards running the world, common sense NOT required. Just $$$ to be made by some HUGE corp, decisions in board rooms for share holders. The country was NOT built on those kind of decisions!

[wmoebis]

Free market and self regulation. That is what was voted in 11 yrs ago and that is what we got.

[Tandem007]

Just like Cargill, you have a choice. They've chosen to leave the community, you can chose to do business elsewhere. I'm sure for the last number of years the majority of growers have delivered their grain to nearest Viterra or Richardson facility.

[farmaholic]

So loyal customers are supposed to follow these guys where ever they go or to their next closest terminal? Hardly, I think they know they will lose volume, but obviously don't seem to care.

I think that is what the old SWP was hoping for and relying on. On that/their level, we all know how well that turned out for them... the rest is history.

Oh, and I'm sure the customers of the closing plants really look forward to "one less option"....my God!!!

[Oliver88]

It sounds like this will require a group of producers or producers in a joint venture with another grain company to buy the terminal.

Cargill sounds willing to sell their asset, it will take some work to get CNR on board.

[bucket]

It's worth the cost of demolition.

And it highlights why we need a railway regulator with teeth.

These are collusionary tactics by the graincos and railways.

To believe anything else is naive and history proves it.

[hobbyfrmr]

When the Pool, Pioneer and Cargill closed the elevators in this area, the biggest farmers bought them and use them.