Producer Cars

[MBFarmer1]

Hi everyone, I am looking for some info on shipping producer cars. Anyone out there have experience with this? What happens if you overload? Ship the wrong grade? what are the penalties? In your experience is it worthwhile to ship this way or can you usually squeeze a better grade out of the local elevator? I have heard people say that they can make $800-1000 per car shipping this way, if this is true why doesn't everyone do it? Lots of questions hoping for lots of response.

[FarmRanger]

If you've ever loaded one, you'll know why everyone doesn't do it. I am on an 8 hour load line, and when the car comes in, you basically drop everything else and get loading. If you live farther from town, its worse yet. I loaded 2 cars when they came in, and lost my desire to try it again. I am sure you'll hear from others who do it all the time, but they likely have it down to an art or don't have to fill them in such a hurry. I know you don't want to overload the car either, better to be slightly under than slightly over. Also, there is no blending for grade when the car gets there.
Best way to find out for sure though, is try one yourself.
Getting some advice from people who do it regularly is a good idea though. Best of luck.

[wd9]

Once you get to know the guys a bit at CN, its good. As far as tough grain, $17 bucks a tonne with wheat at anything above 14.5. You have to know your grade and take good samples, sent to the CGC. You always have the option to ship to an elevator when blending or tough grades like last year. don't ship under or over weight, under a bit is better. Weigh 1 truckfull and make all the loads the same size.

As far as economics, you save on elevation and dockage is most often much lower than an elevator. 90 tonnes at 10 bucks elevation is $900 per car. CWB does producer cars now and the CGC allots them. Simple. Fill out an I-90 tag, fax a weigh bill, wait for your cheque minus $150 for allocation.

As above, try them out if you have access to a siding. My experience, quite positive. Fortunately our siding we release the cars when ready, and the guys at CN are great.

[melvill]

My colleague, Neil Blue, Market Specialist at Vermilion, has had quite a bit of experience with producer cars. Give him a call at (780)853-8239.